Quick answer: two-wheelers with engine capacity up to 350cc moved from 28% to 18% GST with effect from 22 September 2025. Larger-capacity motorcycles fall in the higher 40% band. Auto parts moved to 18% on the same date.
In India, bikes are a popular mode of transportation due to their affordability and convenience. The Indian government has implemented various tax rates on bikes to regulate the industry and generate revenue. In this article, we will provide a comprehensive overview of the tax structure on bikes in India, including the applicable GST percentage slab, relevant HSN/SAC code, and effective date of rate.
Two-wheelers with engine capacity up to 350cc attract 18% GST with effect from 22 September 2025, reduced from 28%. Larger-capacity motorcycles fall in the 40% band, and auto parts moved to 18%. Before 22 September 2025 the standard rate on two-wheelers was 28%, with an additional cess of 3% or 15% depending on the type of bike. The following table provides a brief description of the goods/services, relevant HSN/SAC code, and effective date of rate:
| HSN/SAC Code | Description of Goods/Services | Effective Date of Rate | GST Percentage Slab |
|---|---|---|---|
| 8711 | Bicycles, tricycles, and other cycles (including delivery tricycles), not motorized | 01-07-2017 | 5% |
| 8712 | Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars | 01-07-2017 | 28% + 3% or 15% cess |
Using our GST calculator widget, you can input the base price of your bike to see the total GST amount:
const basePriceInput = document.getElementById('base-price'); const calculateButton = document.querySelector('button'); const gstAmountOutput = document.getElementById('gst-amount'); calculateButton.addEventListener('click', (e) => { e.preventDefault(); const basePrice = parseFloat(basePriceInput.value); const gstRate = 0.28; // 28% GST rate const cessRate = 0.03; // 3% cess rate const totalGst = basePrice * gstRate + basePrice * cessRate; gstAmountOutput.innerText = `Total GST: ₹${totalGst.toFixed(2)}`; });The tax structure on bikes in India consists of a combination of GST and cess. The GST rate is 28%, and the cess rate varies depending on the type of bike. The following table provides a detailed breakdown of the tax structure:
| Type of Bike | GST Rate | Cess Rate | Total Tax Rate |
|---|---|---|---|
| Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars | 28% | 3% or 15% | 31% or 43% |
| Bicycles, tricycles, and other cycles (including delivery tricycles), not motorized | 5% | 0% | 5% |
Prior to the implementation of GST, the tax structure on bikes in India consisted of a combination of central excise duty, value-added tax (VAT), and other local taxes. The following table provides a comparison of the pre-GST tax regime with the current GST regime:
| Type of Bike | Pre-GST Tax Regime | Current GST Regime |
|---|---|---|
| Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars | 30% (central excise duty) + 12.5% (VAT) = 42.5% | 28% (GST) + 3% or 15% (cess) = 31% or 43% |
| Bicycles, tricycles, and other cycles (including delivery tricycles), not motorized | 5% (central excise duty) + 5% (VAT) = 10% | 5% (GST) |
The following are some frequently asked questions regarding input tax credit and compliance for bikes in India:
To avoid common billing mistakes associated with bikes in India, the following compliance tips should be followed:
By following these compliance tips, bike manufacturers and dealers in India can avoid common billing mistakes and ensure compliance with the GST regulations.
Bikes
Due to their affordability and convenience
To regulate the industry and generate revenue
GST percentage slab, HSN/SAC code, and effective date of rate
GST is a tax levied on goods and services, including bikes, with a specific percentage slab applicable
Rate position checked against the GST Council's 56th meeting recommendations (3 September 2025) and the CBIC rate notifications 09/2025 to 17/2025-Central Tax (Rate) dated 17 September 2025, effective 22 September 2025.
