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

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.

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)-

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.

List of Bikes and GST Impact Post September 2025 Changes

Bikes up to 350CC

Bikes above 350CC