GST on Bikes – Know the GST Impact on 2-Wheelers and Bikes in India
GST applied on bikes or two-wheelers depends on the cubic capacity (CC) of the engine. GST on electric bikes is different from that of regular bikes. Since its implementation in 2017, the implementation of GST has shown a positive impact on the price of two-wheelers. In this post, you will learn about the impact of GST on bikes in India.
Here is a Quick Peek into the GST Rates that Affect the Two-Wheeler and Component Costs.
| Category | GST Rate |
| Two-Wheeler Insurance: | 18% |
| Gauge Oil Level, Brake Pads, and Clutch Cable | 28% |
| Battery Charging, Consumables, and Lubricants | 18% |
| Two-Wheelers – Engine Capacity more than 350 CC | 31% |
| Two-Wheelers – Engine Capacity less than 350 CC | 28% |
GST Impact on Top 10 Indian Bikes Prices
Here are some of the popular vehicles with their displacement and how the rates have changed based on the new bike GST rate that has been introduced.
1. Hero HF Deluxe
Before the GST was introduced, the ex-showroom price of Hero HF Deluxe was INR 42,830 in Delhi. The displacement is 97.2 cc. The bike GST rate has now been reduced by 3%-5%. As the GST came into effect, the revised ex-showroom price of the two-wheeler was INR 41,545.
| Bike Name / Model | Price Before GST | Price After GST |
| Hero HF Deluxe | ₹42,830 | ₹41,545 |
2. Hero Splendor
Hero Splendor has always been one of the most sought-after bikes in India. This bike falls into the affordable category and is well within almost everybody’s budget. The ex-showroom price of the bike before GST was INR 48,280 in Delhi. As the displacement of Hero Splendor is 97.2 cc, the price has been reduced to 3%-5% and after GST it came down to INR 46,349.
| Bike Name / Model | Price Before GST | Price After GST |
| Hero Splendor | ₹48,280 | ₹46,349 |
3. Hero Glamour
The displacement of this bike is 124,7 cc and the ex-showroom price in Delhi was INR 56,655. Post GST, the price was reduced to 3%-5% and the new ex-showroom price became INR 54,389.
| Bike Name / Model | Price Before GST | Price After GST |
| Hero Glamour | ₹56,655 | ₹54,389 |
4. Hero Passion
Before the implementation of GST, the ex-showroom price of Hero Passion was INR 52,605 in the capital city of the country. The engine capacity of the bike is 97,2 cc. The bike falls under the beneficiary segment and the ex-showroom price of the bike after GST came down to INR 49,974.
| Bike Name / Model | Price Before GST | Price After GST |
| Hero Passion | ₹52,605 | ₹49,974 |
5. Honda Dream Yuga
The displacement of the Honda Dream Yuga is 124.7 cc, and the ex-showroom price of this bike was INR 51,977 before GST. The price of this two-wheeler became around INR 50,418 after GST was introduced.
| Bike Name / Model | Price Before GST | Price After GST |
| Honda Dream Yuga | ₹51,977 | ₹50,418 |
6. Honda CB Shine
The engine capacity of the Honda CB Shine is 124.7cc and the price used to be INR 56,268 before GST. Post GST, the ex-showroom price of the bike was revised and it became around INR 53,736.
| Bike Name / Model | Price Before GST | Price After GST |
| Honda CB Shine | ₹56,268 | ₹53,736 |
7. Bajaj Platina
Bajaj Platina comes with a 100cc displacement. Before GST came into effect, the ex-showroom price of the bike used to be INR 45,985. After GST was brought in, the ex-showroom price was reduced to 3%-5% and became INR 44,606.
| Bike Name / Model | Price Before GST | Price After GST |
| Bajaj Platina | ₹45,985 | ₹44,606 |
8. Honda CB Unicorn 150
The engine capacity of the Honda CB Unicorn 150 is 149.1 cc and the ex-showroom price used to be INR 70,503 pre-GST. After GST, the price became INR 68,388.
| Bike Name / Model | Price Before GST | Price After GST |
| Honda CB Unicorn 150 | ₹70,503 | ₹68,388 |
9. Royal Enfield Classic 350
The displacement of the Royal Enfield Classic 350 is 346 cc. Before, GST the ex-showroom price was INR 1,34,919. After GST, the ex-showroom price was INR 1,30,197.
| Bike Name / Model | Price Before GST | Price After GST |
| Royal Enfield Classic 350 | ₹1,34,919 | ₹1,30,197 |
10. Bajaj Pulsar
With a displacement of Bajaj Pulsar of 220 cc, the ex-showroom price of this two-wheeler used to be INR 92,000. Post-GST, the ex-showroom price became INR 88,512.
| Bike Name / Model | Price Before GST | Price After GST |
| Bajaj Pulsar | ₹92,000 | ₹88,512 |
GST on Two-Wheelers in 2022-23
GST on two-wheelers is determined by the engine capacity of the bike or scooter. Currently, bikes that are under 350cc are at a 28% tax rate. If the engine capacity of the bike exceeds 350 cc, a 3% compensation cess is added to the basic rate, which effectively leads to a 31% tax rate. For a clearer picture, you can keep reading.
- If you are buying a Hero Splendor bike, the GST charged on the value of the motorbike will be 28%.
- The same is for Honda Unicorn since these bikes are lesser than 350cc.
- If you are buying a Royal Enfield bike that comes with more than 350 cc, the GST charged will be 31% on the value of your bike.
The minimum GST on the common bikes charged is 28% and the higher rate of GST charged is 31%. Furthermore, an 18% GST rate is charged on items such as consumables, lubricants, and battery charging. The GST rate charged on spare parts such as gauge oil level and clutch cable is 28%.
The sudden change in the already high GST rate may affect the demand for two-wheelers having implications throughout the automobile industry. Those who already own a two-wheeler or even planning to purchase one can still save some money by comparing bike insurance policies online and getting great deals on two-wheeler insurance.
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Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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