GST on Bikes in India 2025: Rates, Applicability and HSN Code

Updated on: Sep 16th, 2025

2 min read

GST has streamlined indirect taxation in India, including automobiles and two-wheelers. In the 56th GST Council meeting on 3rd September 2025, in New Delhi, rates were revised—smaller bikes made more affordable and premium motorcycles taxed at a higher rate. This article covers applicability, exemptions, tax rates, and ITC on two-wheelers with the latest updates.

Key Takeaways
The recent 56th GST Council meeting introduced key updates with changes effective from 22nd September 2025
Motorcycles (≤350cc): GST rate reduced from 28% to 18%,and
Motorcycles (>350cc): GST rate increased from 28% to 40%, effective from 22nd September 2025.
*The above update is yet to be notified by the CBIC.

Applicability of GST on Bikes

The GST on bikes in India is applied to the sale of new and used bikes or motorcycles. GST applies on both electric and non-electric two-wheelers. However, there are certain exemptions with regard to GST on two wheelers.

Just like other goods and services, the transportation of bikes worth more than Rs. 50,000 require you to generate an e-way bill, including consumer not registered under GST.

The place of supply for bikes or motorcycles is determined based on the destination of the goods.

The sale of bikes by registered persons requires the issue of a tax invoice.

GST Rate on Bikes and HSN Code

Here are the updated GST rates and HSN codes for bikes after the 56th GST Council meeting (effective from 22nd September 2025)-

Product Category	GST Rate	HSN Code
Bikes with engine capacity up to 350cc	18% ( reduced from 28%)	8711
Bikes with engine capacity exceeding 350cc	40% (increased from 28%+3% cess=31%)	8711
Electric bikes	5% (No change)	8711

ITC Availability on Bikes

As per section 17(5)(a), you cannot claim ITC on bikes in India. However, there are a few exceptions. You can claim input tax credit in the following cases -

If the bikes purchased are being used to transport passengers or as public transport
If the bikes purchased are supplied further
If the bike is used for training people to drive such vehicle.

Frequently Asked Questions

What is the GST rate on bikes?

In India, the Goods and Services Tax (GST) rate on bikes or motorcycles depends on the engine capacity or the cubic capacity (CC) of the vehicle.

While GST on 350 cc bikes is 28%, bikes with an engine capacity of more than 350cc are charged GST rate at 28% + a cess of 3%, which amounts to 31%.

Can we claim GST on a bike purchase?

You cannot claim GST on bikes purchased in India.

However, ITC is available in the following cases -

If the bike is supplied further
If the bike is used for transportation of passengers
If the bike is used for training purposes.

What is the HSN code of a scooty?

The Harmonized System of Nomenclature (HSN) code of a scooty in India is 8711. The HSN code for two-wheelers 8711 includes all types of two-wheelers such as motorcycles, scooters, mopeds, and cycles fitted with an auxiliary motor.

What is the GST HSN code for bike spare parts?

The GST HSN code for bike spare parts in India is 8714. It covers a wide range of spare parts, including engine parts, body parts, brakes, suspension, wheels and tyres.

What is the GST rate for electric bikes?

The GST rate for electric bikes (two-wheelers) in India is 5%.

What is the GST rate on a 350cc bike?

The GST rate for a 350cc bike (i.e. a motorcycle with engine capacity ≤ 350cc) in India is 18% (reduced from 28%).

What is the GST rate for 100cc bikes?

The GST rate for 100cc bikes (i.e. two-wheelers ≤350cc) is 18% under the new GST reform.

What is the GST rate on bikes above 350cc?

Bikes with engine capacity above 350cc will now be taxed at a 40% GST rate, compared to the earlier ~31% (28% GST + 3% cess).

About the Author

Annapoorna

Assistant Manager - Content

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more

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