What’s Happening with GST—and Why It Matters to You
Recently, the Indian government changed the GST (Goods and Services Tax) rates on vehicles. Two-wheeler bikes with engines up to 350 cc now have a lower GST rate of 18%, down from 28%. This means you pay less tax when buying bikes in this category! That’s a 10% drop—a real saving in your pocket. However, for larger bikes above 350 cc, GST has been raised sharply to 40%, so it’s smarter to focus on smaller bikes if you want to keep costs low. These changes took effect on 22 September 2025
How GST Cuts Help Everyday Riders
Because of this GST cut, prices of fuel-efficient bikes (used for daily commuting) have come down. This matters a lot in India, where millions rely on two-wheelers. With this 10% tax reduction, you’ll see price drops, making it easier to get a good bike without breaking your budget. Auto experts say this move is aimed at boosting sales and helping consumers right before the festive season.
🔹 Quick Summary Table – GST Price Benefit on Top 5 Bikes
| Bike Model | Ex-Showroom Price (₹) | Old GST (28%) | New GST (18%) | GST Price Reduction (₹) |
|---|---|---|---|---|
| Hero Splendor | ₹70,000 | ₹19,600 | ₹12,600 | ₹7,000 |
| Honda Shine | ₹73,000 | ₹20,440 | ₹13,140 | ₹7,300 |
| Bajaj Pulsar 150 | ₹1,14,000 | ₹31,920 | ₹20,520 | ₹11,400 |
| Royal Enfield Hunter 350 | ₹1,50,000 | ₹42,000 | ₹27,000 | ₹15,000 |
| Yamaha MT‑15 | ₹1,64,000 | ₹45,920 | ₹29,520 | ₹16,400 |
📝 Note: These are approximate reductions based on the ex-showroom price. Actual on-road savings may vary slightly depending on state taxes, registration, and insurance.
Notes on each bike:
- Hero Splendor – A super‑popular commuter bike, known for reliability and fuel efficiency.
- Honda Shine – Another trusted commuter offering a smooth ride and good mileage.
- Bajaj Pulsar 150 – A sportier middle‑weight, balancing performance and value.
- Royal Enfield Hunter 350 – Retro‑styled, fun to ride, still under 350 cc, so it benefits from the lower GST.
- Yamaha MT‑15 – Stylish naked‑street bike with modern looks and peppy performance.
Estimating Your Savings
Let’s take an example: the Bajaj Pulsar 150 priced at ₹1,14,000.
- Previous GST (28%) = ₹31,920 → Rough total ~₹1,45,920
- New GST (18%) = ₹20,520 → Rough total ~₹1,34,520
That’s nearly ₹11,400 saved thanks to lower tax!
This kind of saving applies across all bikes up to 350 cc. It adds up meaningfully, especially if you’re mindful of budget.
Why Bigger Bikes Cost More Now
If you are considering bikes above 350 cc—like KTM 390 Duke, Royal Enfield Himalayan 450, or Triumph Speed 400—there’s no GST benefit. In fact, these bikes now carry a steep 40% GST, up from the earlier ~31% (28% plus cess). This means higher final prices for premium bikes.
For instance, the Bajaj Pulsar NS400Z (premium segment) sees an ex-showroom increase from ₹1.92 lakh to ₹2.05 lakh—about ₹13,000 more. That’s why focusing on under‑350 cc models is wiser if you’re looking for GST savings.
Tips for Buyers
- Buy before 22 September 2025? Chances were better—GST hadn’t changed yet. Now the new rates are here to stay.
- Best for commuters: Go for bikes like Hero Splendor or Honda Shine.
- Looking for style? Royal Enfield Hunter 350 and Yamaha MT‑15 are great picks; still under 350 cc and now cheaper.
- Ready to upgrade? Consider the extra cost of premium bikes above 350 cc—it’s significantly more now.
Wrapping It Up
The recent GST changes offer a clear advantage to buyers interested in small-engine bikes up to 350 cc—you pay less tax and the bike becomes more affordable. On the contrary, premium bikes above 350 cc are now more expensive due to a higher GST. If you want an affordable, reliable two-wheeler, these five bikes—Hero Splendor, Honda Shine, Bajaj Pulsar 150, Royal Enfield Hunter 350, and Yamaha MT‑15—are among the best under the GST benefit.