GST Rate Revision Impacts Two-Wheeler prices: What Buyersโฃ Need to Know
Newโข Delhi -โฃ September 4, 2025 – A significantโค overhaul โof teh Goods and Services Tax (GST) rates isโฃ poised toโค reshape the Indian โtwo-wheeler market, impacting the prices of scooters and motorcycles ranging from entry-level commuters โto premium brands like Triumph and โHarley-Davidson. The GST Council’s decision to โstreamline tax slabs, moving from a four-tier โคsystem to primarily 5% and โค18%, with a 40% special rate for selectโ categories, will result in price adjustments โacross the board.
The shift, announced today, consolidates previous rates and directly affects โฃvehicles โbasedโข on engine capacityโข and length. While electric vehicles โ(EVs) will maintain their 5% GST rate toโข bolster India’s clean mobility objectives, petrol, LPG, and CNG โtwo-wheelers under 1,200cc and 4,000mm in length will now be taxed at 18% – a reductionโค from the previous 28%. Diesel two-wheelers up to 1,500cc and 4,000mm will also benefit from the 18% rate.Higher capacity โขand longer vehicles, includingโฃ racing bikes, will fall under the 40% bracket.This restructuring is expected to lead to price reductionsโค on many popular modelsโ while increasing costs for high-end bikes.
Here’s a โlook at how the GST changes are likely to affectโฃ the prices of โขsome popular scooters (ex-showroom pricesโ as of September 4, โค2025, based on official websites and industry sources – buyersโ should confirm with local dealers):
| Scooter Model | Engine Capacity | Previous Price (โน) | Revised Price (โน)โฃ | GST Savings (โน) |
|————————–|—————–|——————–|——————-|—————–|
| Honda Activaโ 6G โ | 109.5cc | 75,000 โข โข โ | โค70,667 โ โ| 4,333 โข |
| โTVS โJupiter 125 โ โข | 124cc โค โ | 77,000 โข โข | 70,667 โ | 6,333 โฃ |
| Suzuki Access 125 โฃ โ | 124cc โ | 79,500 โ โค โ | 72,889 | 6,611 โค |
| Hero Maestro Edge 125 |โ 124cc โค | 76,500 โ โ | 70,111 โ โฃ โ โค โ| 6,389 โ โ |
| TVS NTORQ โ125 | 124.8cc โ | 85,000โ โ โ โฃ | 77,778 โข โ | 7,222 โฃ|
| Honda Dio โ125 โ โ | 124cc โค | 72,000 โฃ โ โข | 65,778 | 6,222 โ โข โ|
| Suzuki Burgman Street 125| 124cc โข | 82,000 โค โโค | 75,556 โข | 6,444 |
| Yamaha charm 125 โค โค |โ 125cc โข | 76,000 โค โ โค โ โข | 70,667 โค | 5,333 |
| Hero Destini 125 | 124cc โค | 74,500 | 69,111 โ | 5,389 โ โ โ |
| Aprilia sr 125 | 124cc โ | 95,000 โ | 88,148 โข โค โข โ โ | โค6,852 |
Industry analysts predict โฃthat the price reductionsโฃ on scooters and smaller motorcycles will stimulateโฃ demand, notably โคduring the upcoming festiveโข season. Conversely, buyers of larger displacement motorcycles – often favored by enthusiasts – may face increased costs. The new GST structure is โintended to simplify the tax system and promote a more lasting โautomotive sector, aligning with India’s long-term