GST Rate Revision Impacts Two-Wheeler prices: What Buyers Need to Know
New Delhi - September 4, 2025 – A significant overhaul of teh Goods and Services Tax (GST) rates is poised to reshape the Indian two-wheeler market, impacting the prices of scooters and motorcycles ranging from entry-level commuters to premium brands like Triumph and Harley-Davidson. The GST Council’s decision to streamline tax slabs, moving from a four-tier system to primarily 5% and 18%, with a 40% special rate for select categories, will result in price adjustments across the board.
The shift, announced today, consolidates previous rates and directly affects vehicles based on engine capacity and length. While electric vehicles (EVs) will maintain their 5% GST rate to bolster India’s clean mobility objectives, petrol, LPG, and CNG two-wheelers under 1,200cc and 4,000mm in length will now be taxed at 18% – a reduction from the previous 28%. Diesel two-wheelers up to 1,500cc and 4,000mm will also benefit from the 18% rate.Higher capacity and longer vehicles, including racing bikes, will fall under the 40% bracket.This restructuring is expected to lead to price reductions on many popular models while increasing costs for high-end bikes.
Here’s a look at how the GST changes are likely to affect the prices of some popular scooters (ex-showroom prices as of September 4, 2025, based on official websites and industry sources – buyers should confirm with local dealers):
| Scooter Model | Engine Capacity | Previous Price (₹) | Revised Price (₹) | GST Savings (₹) |
|————————–|—————–|——————–|——————-|—————–|
| Honda Activa 6G | 109.5cc | 75,000 | 70,667 | 4,333 |
| TVS Jupiter 125 | 124cc | 77,000 | 70,667 | 6,333 |
| Suzuki Access 125 | 124cc | 79,500 | 72,889 | 6,611 |
| Hero Maestro Edge 125 | 124cc | 76,500 | 70,111 | 6,389 |
| TVS NTORQ 125 | 124.8cc | 85,000 | 77,778 | 7,222 |
| Honda Dio 125 | 124cc | 72,000 | 65,778 | 6,222 |
| Suzuki Burgman Street 125| 124cc | 82,000 | 75,556 | 6,444 |
| Yamaha charm 125 | 125cc | 76,000 | 70,667 | 5,333 |
| Hero Destini 125 | 124cc | 74,500 | 69,111 | 5,389 |
| Aprilia sr 125 | 124cc | 95,000 | 88,148 | 6,852 |
Industry analysts predict that the price reductions on scooters and smaller motorcycles will stimulate demand, notably during the upcoming festive season. Conversely, buyers of larger displacement motorcycles – often favored by enthusiasts – may face increased costs. The new GST structure is intended to simplify the tax system and promote a more lasting automotive sector, aligning with India’s long-term
