Breaking News for Indian Bikers! From September 3, 2025, purchasing a motorcycle above 350cc engine capacity will become significantly more expensive. The Indian government has announced a new tax update that will impose a 40% GST on bikes in India above 350cc.
As a result, this move has sent shockwaves across the biking community, since it could make popular motorcycles ₹80,000 more expensive on a ₹2,00,000 bike. Let’s explore what this GST hike means for riders, manufacturers, and the Indian two-wheeler market.
40% GST on Bikes in India – Key Details of the Hike
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The new 40% GST rate will apply only to bikes above 350cc.
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On the other hand, smaller commuter bikes (below 350cc) remain unaffected.
For example:
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A bike priced at ₹2,00,000 will now cost ₹2,80,000 after GST.
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Similarly, a premium motorcycle worth ₹4,00,000 could go up to ₹5,60,000.
This means biking enthusiasts who love Royal Enfield, KTM, Jawa, Harley-Davidson, Triumph, or Bajaj Dominar will feel the pinch the most.
Impact of the 40% GST on Bikes in India
1. Middle-Class Riders Hit Hard
Since bikes like the Royal Enfield Classic 350, Meteor 350, and Himalayan fall into this category, they will now be far less affordable for middle-class Indians.
2. Likely Decline in Sales
As a consequence of higher prices, premium bike sales could drop sharply because customers may rethink their budgets.
3. Growth in the Second-Hand Market
In addition, many riders may shift to the used motorcycle market to avoid paying higher GST costs.
Why Has the Government Imposed 40% GST on Bikes in India?
While the government has not released an official explanation, experts suggest several possible reasons:
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Luxury Classification – Bikes above 350cc may now be treated as luxury products.
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Revenue Boost – Higher GST can generate additional income for the government.
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Push for EVs – This move might encourage riders to switch to electric two-wheelers, which already enjoy lower taxes.
When compared globally, many countries classify larger-capacity motorcycles as premium vehicles with higher taxation. Therefore, India may be aligning itself with international practices.
Reactions from Bikers & Industry Experts
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Biker Community Outrage: Across social media, riders are expressing frustration, calling the tax unfair to passionate bikers who save for years to buy their dream motorcycles.
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Industry Concerns: Manufacturers like Royal Enfield, Bajaj, and KTM may face reduced sales, pushing them to re-strategize pricing or launch smaller engine variants.
Conclusion
The 40% GST on motorcycles in India above 350cc is undoubtedly a game-changer for the two-wheeler industry. While it may boost government revenue and promote electric mobility, it also risks alienating lakhs of middle-class riders who aspire to own a powerful motorcycle.
👉 What do you think? Will you still purchase a 350cc+ bike after this GST hike, or will you switch to smaller bikes or the second-hand market? Share your thoughts in the comments below!