Impact of New GST Rates on Bike and Scooter Prices

Recently, in the 56th meeting of the GST council, the government rolled out the revised GST rates and simplified the tax structure. In the revised GST structure, most of the automobiles are tax under two rates either 5% or 18%. And a special tax of 40% is applicable on the luxury or heavier vehicle.

After September 22, 2025 the revised GST structure will come into effect and bikes under 350 cc engine capacity will attract a tax rate of 18%, thus enabling buyers to save ₹5,000 to ₹12,000 depending on their engine, make and model. On the other hand, 40% is levied on the bikes above the 350 cc engine capacity and a concessional tax of 5% is levied on electric vehicles.

Government’s this move is to rebalance tax burden while preserving the affordability for the middle-class.

Source: Economic Times