Sub-350cc Bikes And Scooters Get Cheaper After GST Cut: Here’s How Much You Save

The Indian government has revised GST on two-wheelers, reducing the tax rate on models up to 350cc from 28% to 18%. This 10% cut in ex-showroom prices makes commuter motorcycles and scooters—the backbone of India’s two-wheeler market—far more affordable. However, larger bikes above 350cc now face a higher levy. Let’s break down what this means for buyers.

Uniform GST Rate Removed

Until now, all two-wheelers carried a flat 28% GST regardless of engine capacity. Under the new structure, motorcycles and scooters up to 350cc attract only 18% GST, effectively lowering their prices by around 10%.

To see the real-world effect, let’s look at three of India’s top sellers: the Honda Activa (scooter), Hero Splendor+ (commuter bike), and Royal Enfield Classic 350 (retro lifestyle bike).

Impact on Scooters

India’s most popular scooter, the Honda Activa, currently costs ₹81,045 (ex-showroom, Delhi). With GST reduced, its price drops to ₹68,109 a saving of ₹12,936. For a mass-market product, this makes it even more attractive to first-time buyers.

Impact on Commuter Bikes

The Hero Splendor+, India’s highest-selling motorcycle, starts at ₹80,166 (ex-showroom, Delhi). After the GST revision, its effective price becomes ₹68,066, saving buyers ₹12,050. Already a market leader, this lower entry point is likely to boost sales further and put more riders on the road.

Impact on Lifestyle Bikes

At the top end of the sub-350cc category sits the Royal Enfield Classic 350. Despite its “350” name, the bike runs a 349cc engine, keeping it in the lower GST bracket. Its ex-showroom price of ₹1.97 lakh (Chennai) now falls to ₹1.77 lakh, a huge ₹30,000 reduction. This makes the Classic 350 and its siblings far more tempting for aspirational buyers seeking style and heritage at a more accessible price.

Big Win for Buyers

With the new GST structure, two-wheelers up to 350cc are now considerably more affordable across segments from scooters and commuters to popular lifestyle motorcycles. On the flip side, bikes above 350cc have become more expensive. For budget-conscious buyers or those eyeing their first Royal Enfield, this tax cut could be the nudge needed to make the purchase.