GST on a bike is 18% up to 350cc, 40% above 350cc and 5% on electric two-wheelers, all from 22 September 2025. The GST Council cut the rate on smaller bikes and raised it on premium ones.
Below: the rate for each class, what changed, price examples, HSN codes, input tax credit and the rules for used bikes and dealers.
GST Rate on Bikes in India 2026
The GST rate on a bike depends on its engine capacity, and electric two-wheelers have a separate low rate.
| Class | Earlier rate | Rate now | HSN code |
|---|---|---|---|
| Up to 350cc | 28% | 18% | 8711 |
| Above 350cc | 28% plus 3% cess | 40% | 8711 |
| Electric two-wheelers | 5% | 5% | 8711 |
GST applies to new and used bikes, petrol and electric. A registered seller issues a tax invoice for every sale.
The place of supply is where the goods are delivered. Moving bikes worth more than Rs 50,000 needs an e-way bill, as the e-way bill guide explains.
What Changed on 22 September 2025
The 56th GST Council meeting on 3 September 2025 cut the rate on bikes up to 350cc to 18% and raised it above 350cc to 40%.
| Change | Before | After |
|---|---|---|
| Bikes up to 350cc | 28% GST | 18% GST |
| Bikes above 350cc | 28% GST plus 3% cess | 40% GST |
| Electric two-wheelers | 5% GST | 5% GST |
| Effective date | - | 22 September 2025 |
The 3% cess on large bikes was folded into the 40% rate, so the effective rise is from 31% to 40%.
The CBIC site carries the notifications that put the new rates in force.
How the GST Change Affects the Price
GST is charged on the price before tax, so each class moves by a different amount.
| Item | At 28% | At 18% |
|---|---|---|
| Price before GST | Rs 1,00,000 | Rs 1,00,000 |
| GST | Rs 28,000 | Rs 18,000 |
| Price with GST | Rs 1,28,000 | Rs 1,18,000 |
A bike up to 350cc is Rs 10,000 cheaper on every Rs 1,00,000 of pre-tax price.
| Item | At 31% | At 40% |
|---|---|---|
| Price before GST | Rs 2,50,000 | Rs 2,50,000 |
| GST and cess | Rs 77,500 | Rs 1,00,000 |
| Price with GST | Rs 3,27,500 | Rs 3,50,000 |
A bike above 350cc costs Rs 22,500 more on every Rs 2,50,000 of pre-tax price.
The on-road price also holds road tax, registration and insurance, which this change does not touch. Makers may also adjust prices, so your quote can differ.
Check the GST on a price
Enter the price before tax and the rate to see the GST and the final amount.
How to Work Out the GST on a Bike
You can work out the GST on any bike in 5 steps.
Find the class of the bike
Check the engine capacity, and whether the bike is electric.
Pick the GST rate
Use 18% up to 350cc, 40% above 350cc and 5% for an electric two-wheeler.
Take the price before tax
Start from the price before GST, not the on-road price.
Multiply by the rate
Multiply the price before tax by the rate, then add the GST to the price.
Check the invoice
Confirm that the tax invoice shows HSN 8711 and the GST split.
The Bike Loan EMI Calculator turns the final price into a monthly instalment.
HSN Code for Bikes, Scooters and Parts
The HSN code for bikes and scooters is 8711, and spare parts and accessories fall under 8714.
| Goods | HSN code |
|---|---|
| Motorcycles, scooters, mopeds | 8711 |
| Electric two-wheelers | 8711 |
| Bicycles | 8712 |
| Parts and accessories of motorcycles | 8714 |
A tax invoice must carry the HSN code and the rate, so the buyer and the seller can match the sale in the GST returns.
The rate for a spare part depends on the part, so check it before you invoice. The GST rates guide lists the slabs.
GST on Electric Bikes, Scooters and Bicycles
Electric bikes and scooters carry 5% GST, the lowest rate among two-wheelers.
| Vehicle | GST rate |
|---|---|
| Electric bike or scooter | 5% |
| Electric cycle | 5% |
| Bicycle | 5% |
An e-bike priced at Rs 1,20,000 before tax pays Rs 6,000 of GST, for a total of Rs 1,26,000.
The bicycle rate was cut from 12% to 5% in the September 2025 changes. This point rests on a secondary source, so confirm it on the CBIC site.
Input Tax Credit on Bikes
You cannot claim input tax credit on a bike, because Section 17(5)(a) blocks credit on motor vehicles that carry up to 13 people.
The block has three exceptions: the bike is resold, it carries paying passengers, or it is used to train drivers.
| Buyer | Credit allowed |
|---|---|
| Bike dealer, for resale | Yes |
| Bike taxi operator | Yes |
| Driving school, for training | Yes |
| Business, for staff use | No |
| Individual buyer | No |
The Section 17(5) guide covers every blocked credit, and the credit that was claimed by mistake has to be reversed with interest.
GST on Used Bikes
An individual who sells a personal bike charges no GST, because it is not a sale in the course of business.
A registered dealer in used bikes pays GST on the margin between the sale price and the purchase price, under Rule 32(5) of the CGST Rules.
The margin is taxed at the rate for the class of the bike. A dealer should still issue a tax invoice with HSN 8711.
GST Rules for Bike Dealers
A bike dealer must register under GST once turnover from goods crosses Rs 40 lakh in most states.
The Bike Insurance Calculator estimates the premium that the 18% GST is charged on.
Frequently Asked Questions: GST on Bikes
Disclaimer: Rates follow the GST Council's 56th meeting on 3 September 2025, and the bicycle and used bike points rest on secondary sources. Confirm on cbic.gov.in or with a Chartered Accountant. This page is general information, not tax advice.