India Imposes 40% GST on Luxury Bikes Over 350cc – GST 2025

The Government of India has announced a significant tax update that will impact all motorcycle enthusiasts and premium bike buyers in the country. Starting September 2025, luxury motorcycles with engine capacities above 350cc will now attract a hefty 40% Goods & Services Tax (GST). This change is set to make high-performance and adventure bikes much costlier, while smaller displacement motorcycles and mass-market vehicles will benefit from a reduced GST of 18%.

What Does the New 40% GST Mean for Big Bikes in India?

This policy aims to target luxury and premium bikes, making a clear distinction between essential and aspirational vehicles. Previously, motorcycles above 350cc were taxed at around 31% (combining GST and cess), but with the new reform, buyers will notice a sharp increase in prices for larger bikes. Meanwhile, the cost of ownership of mass-market models like the Royal Enfield Classic 350, entry-level KTMs, and commuter bikes will decrease due to a lower 18% GST.

Which Motorcycles Will Attract the 40% GST?

Here’s a list of popular adventure and luxury bikes above 350cc that now fall into the 40% GST bracket in India:

• Royal Enfield: Interceptor 650, Continental GT 650, Himalayan 450, Super Meteor 650

• KTM: 390 Adventure, Duke 390, RC 390

• Honda: CB500X, CBR650R, CB650R, Africa Twin, Gold Wing

• Triumph: Tiger 900, Tiger 1200, Speed 400, Trident 660, Bonneville, Rocket 3

• BMW: G 310 GS, F 850 GS, R 1250 GS Adventure

• Suzuki: V-Strom 650 XT, Hayabusa

• Kawasaki: Versys 650, Ninja 650, Z900, Ninja 1000SX, Versys 1000

• Ducati: Multistrada series, Monster, Panigale

• Benelli: TRK 502, Leoncino 500

• Harley-Davidson: Nightster, Fat Boy, Pan America

• Yamaha: MT-09, Tenere 700, Tracer 900GT

• Aprilia: Tuono 660, RSV4

Nearly every superbike, retro classic, and adventure tourer above the 350cc mark will now be subject to the higher 40% GST rate.

Top Adventure Bikes Facing 40% GST

Adventure touring fans should take note, as some of India’s top adventure motorcycles are now significantly more expensive:

• Royal Enfield Himalayan 450, Interceptor 650, Continental GT 650

• KTM 390 Adventure

• Honda CB500X, Africa Twin

• Suzuki V-Strom 650 XT

• Triumph Tiger 900 and 1200

• BMW G310 GS, F 850 GS, R 1250 GS

• Benelli TRK 502

• Ducati Multistrada Series

• Kawasaki Versys series

What Does This Mean for Enthusiasts?

The revised tax rules sharply raise the entry price for premium models in the Indian market. While mass-market motorcycles become more affordable, adventure bikes, superbikes, and classic cruisers—once within reach for passionate riders—are now much more expensive. Motorcycle buyers must factor in this increased GST when planning big bike purchases from September 2025 onwards.

Final Thoughts

The 40% GST on luxury bikes over 350cc is a landmark policy shift for India’s automotive sector. The clear message: premium motorcycling is a luxury, and it will now come at a luxury tax. If the dream has always been a big bike, make a move soon, or be prepared for a higher price tag post-September.

References

1. GST on 350cc-Plus Motorcycles Hiked to 40% from 28% – Autocar Professional

2. GST rate cut: Small cars, under-350cc motorcycles get cheaper – Hindustan Times

3. GST slashed to 18% on most vehicles, big bikes and SUVs now pricier – Business Today

4. Motorcycles Above 350CC May Attract 40 Percent Tax – Angel One

5. GST impact on motorcycles: Honda Shine, Splendor, Classic 350 in 18% GST slab, Himalayan 450, KTM 390 to cost more – Upstox News