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

The introduction of GST in India has simplified indirect taxation in the country. The uniform tax structure has benefitted every industry, including the automobile and two-wheeler sectors. The GST on a bike depends on its engine capacity. This article talks about the applicability, exemptions, tax rates, and ITC availability for GST on two-wheelers in India.

Key Takeaways

• 29th August 2025: 350 cc bike GST rate is 28% GST plus 3% cess at present. 
• GST on bikes above 350cc may attract 40% GST if the Council recommends an increase in higher slab rate at the upcoming 56th GST Council meeting, expected to be implemented from 22nd September as per media reports.
• GST on bikes up to 350cc is 28%, may come down post 56th GST Council meeting.
• 15th August, 2025- The Prime Minister, in his speech on Independence Day, announced a GST overhaul ahead of Diwali. There will be a significant cut in the GST rates, with 5% and 18% as the only slab rates. One can expect the revised rate list after the 56th GST Council meeting. 

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 GST rates and HSN codes for bikes-

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.