Understanding GST Reform
Learn how the proposed GST restructuring could impact motorcycle pricing across India and what it means for different categories of bikes.
Current GST Structure
≤349.9cc: 28% GST
Entry-level and mid-size motorcycles
≥350cc: 28% GST + 3% Cess
Large displacement motorcycles (Total: 31%)
Proposed GST Structure
≤349.9cc: 18% GST
Reduced rate for small displacement bikes
≥350cc: 40% GST
Higher rate for large displacement bikes
Who Benefits and Who Pays More?
Price Reduction
Small Displacement (≤349.9cc)
- • Entry-level commuter bikes
- • 100-150cc scooters and motorcycles
- • Budget-friendly options
- • First-time buyer segment
Expected Impact
₹5,000 - ₹15,000 savings per bike, making motorcycles more accessible to budget-conscious buyers and first-time purchasers.
Price Increase
Large Displacement (≥350cc)
- • Mid-size motorcycles (350-500cc)
- • Premium and luxury bikes (500cc+)
- • Adventure and touring motorcycles
- • Sports bikes and cruisers
Expected Impact
₹20,000 - ₹80,000+ increase depending on the bike's price, significantly affecting premium motorcycle segments.
Market Implications
Accessibility Impact
Lower prices on small bikes could increase motorcycle adoption among first-time buyers and budget-conscious consumers, potentially boosting the entry-level segment.
Premium Segment
Higher prices on large bikes may slow down the premium motorcycle market, affecting brands that focus on mid-size and high-displacement motorcycles.
Revenue Effects
The restructuring aims to generate more revenue from luxury goods while making essential transportation more affordable for the masses.
Important Disclaimer
Proposal Status: The GST reform mentioned here is based on proposals and discussions. The actual implementation, rates, and structure are subject to government notification and may differ from these estimates.
Price Variations: Actual motorcycle prices depend on various factors including dealer margins, location-specific taxes, insurance rates, and market conditions.
Financial Decisions: Always consult with authorized dealers and verify current prices before making any purchase decisions.
How Price My Bike Helps You
Compare Impact
See exactly how GST reform would affect the price of any specific motorcycle model, with side-by-side comparison of current vs proposed pricing.
Plan Your Purchase
Calculate on-road prices, EMI options, and total cost of ownership to make informed decisions about when and what to buy.