The new GST 2.0 came into effect today, reducing tax rates for automobiles in India. Automakers have sought to pass on the benefits of the new policy to buyers. The new price cuts range from ₹40,000 on entry-level hatchbacks to ₹30 lakh on luxury SUVs.
Since a large number of Indian two-wheelers fall under the 350cc category, the GST rate cut from 38% to 18% is a major boost for budget-conscious buyers. Popular commuter options such as Hero Splendor, Honda Activa, Bajaj Pulsar, TVS Apache, and Royal Enfield Classic 350 are set to become significantly cheaper, encouraging first-time buyers and fuelling the festive season. The discount on Commuter class bikes below.
| Model | Discount |
|---|---|
| Activa 110 | Rs 7,874 cheaper |
| Dio 110 | Rs 7,157 off |
| Activa 125 | Rs 8,259 cut |
| Dio 125 | Rs 8,042 reduction |
| Shine 100 | Rs 5,672 cheaper |
| Shine 100 DX | Rs 6,256 cut |
| Livo 110 | Rs 7,165 lower |
| Shine 125 | Rs 7,443 cut |
| SP125 | Rs 8,447 off |
| CB125 Hornet | Rs 9,229 cheaper |
| Unicorn | Rs 9,948 cut |
| SP160 | Rs 10,635 lower |
| Hornet 2.0 | Rs 13,026 off |
| NX200 | Rs 13,978 cheaper |
Discounts and Benefits on Bikes that are above 300CC
With the new GST Policy, bikes above 350cc will now attract 40% GST, making them more expensive. This will include the higher-end models in the 450 to 650 cc category. Since the reductions in the prices vary as per the cities and stock availability, these figures are expected discounts based on estimation.
| Bike Model | Expected Reduction prices |
| Royal Enfiled Hunter | up To Rs 15,000 |
| Royal Enfield Classic | around Rs 16500 |
| Royal Enfiled Meteor | Around Rs 19,000 |
| Royal Enfield Bullte 350 | Around Rs 18,000 |
| Royal Enfiled Goan Classic | Around Rs 20,000 |
| Honda CB 350 | Around Rs 18,000 |
| Honda CB 350 H’ness | Around Rs 18,500 |
| Honda Cb 350 Rs | Around Rs 18500 |
| Jawa 350 | Around Rs 15000 |
| Yezdi Roadster | Around Rs 16,000 |
With the new GST update, all bikes with an engine capacity above 350cc have been placed under a different tax category than smaller bikes. Bikes with an engine capacity above 350cc will now attract a GST rate of 40%, while those with an engine capacity below 350cc will be taxed at 18%.
Also Read: Triumph to Launch All-New 350cc Bikes Soon? Here’s Everything You Need to Know
