The government has eliminated the 12% and 28% tax slabs in the 56th GST Council meeting. Now, there are primarily only 5% and 18% slabs, which include most goods. These new rates will be implemented from September 22, 2025. This will directly affect the prices of the country’s best-selling bikes like Hero Splendor and scooters like Honda Activa.
If you are planning to buy a new bike, this news could be helpful. We are going to tell you how much you will have to pay for a new bike after the new GST rates are implemented.
Bikes with engines less than 350cc will see GST reduced from 28% to 18%. This will make popular bikes like Bajaj Pulsar or Honda Activa cheaper.
If you are planning to buy a new bike with a 350cc engine or larger, cruisers like Royal Enfield will now be subject to a 40% GST. Previously, these bikes had a 28% GST plus a 3-5% cess, totaling approximately 32% tax. The cess has now been removed, and a flat 40% tax has been imposed.
This decision by the government will not only provide relief to the middle class but will also give a new impetus to the automobile industry. According to media reports, the sale of two-wheelers will increase during the upcoming festive season because people will be inclined to buy new vehicles. For example, let’s consider how much the Hero Splendor Plus might cost after the new GST rates are implemented. The ex-showroom price of the Hero Splendor Plus in Delhi is currently ₹79,426. If a reduction of about 10% is implemented in the GST on this bike, its price could decrease by ₹7,900. This will directly benefit the customers.
Apart from the ex-showroom price of the bike, it includes ₹6,654 for RTO charges, ₹6,685 for insurance premium, and about ₹950 for other charges. So, after adding all these, the on-road price of the Splendor Plus in Delhi reaches around ₹93,715. If the impact of the tax reduction is fully implemented, this bike could become much more affordable in the future.
