Review and effect of 40% GST on bikes above 350 CC.

[Vijay Dhirawat]

As a bike enthusiast, I was eagerly looking forward to upgrading my motorcycle beyond 400cc segment. But this recent news about 40% GST has really impacted my plan and I have to wait to save more.
What are your thoughts on this 40% GST tax?

[sajeesh]

They call it a Sin Tax. Its ridiculous and the govt see above 350cc bikes as luxury.... wtf!!

This eventually will be a big hinder to the transition plan of riders who wanted to move to bigger and better bikes to satisfy their adventure needs. I know for a fact that this extra 12% over previous 28% will play a psychological barrier even if the same person can afford it.

[shrawan]

Purely political, we do nothing but adopt it.

[sudiproy1311]

We have nothing to do but to adapt, although in reality it's not 12% it's going to be 9% as earlier there was 3% cess which we don't have to pay now.

[IBR_Kritik]

I don’t agree with the decision to raise GST to 40% on motorcycles above 350cc. The idea that such bikes are “luxury products” feels completely misplaced. Motorcycles, no matter the engine size, are still two-wheelers and a means of transport. Riding is not a luxury—it’s choosing thrill over convenience, mobility with hardwork not comfort and in many cases, even livelihood.

For adventure and touring riders, bigger capacity motorcycles aren’t about showing off but about safety, endurance, and practicality. Do anyone can think one can flaunt or show off Himalayan 411 or any purpose built motorcycle. A 500cc or 650cc machine gives the stability, braking, and comfort needed for long distances, especially on highways and hilly terrain. Calling that “luxury” is unfair.

This hike will also hurt our own domestic brands like Royal Enfield, Jawa, and Bajaj-Triumph, which have worked hard to build a market in this segment. Price of offerings from these makers such as Himi 450, Yezdi adv, scram 400X will increase wef 22nd September. Reducing affordability will directly impact manufacturing, dealerships, and jobs. And let’s not forget the ripple effect—motorcycle tourism boosts local economies everywhere riders travel, from dhabas to homestays.

Taxing these motorcycles like luxury cars or yachts doesn’t make sense. For many Indians, saving up for a mid-capacity bike is a passion and a dream, not some extravagance. Instead of discouraging it, the government should be encouraging safe and responsible riding, promoting adventure tourism, and supporting “Make in India.”

[TheOne]

From government's perspective, 350cc is not a necessity. It is a lifestyle statement which is a SIN.
"SIN" in a country where per captia income roughly is $2,800 (Rs250,000) per annum and BPL of 25%.

Motorcycle are for commuting, cheapest and fastest way from Point A to B
So if still you have that adventure and touring spirit who want to do Chapter Runs and MA spending lacs of rupees, it is a clear assumption that you are financially well off and way up ahead of the poverty curve.
Hence 40% Tax

[IBR_Kritik]

Bajaj auto will not increase price of Triumph and KTM offerings post GST hike.
Found this article on Team-BHP :

https://www.team-bhp.com/news/bajaj-absorb-gst-hike-triumph-ktm-bikes-over-350cc

[baruah.charlie]

I have been driving my 350 cc for last 16years. Though i have a great attachment/bonding with my machine, i have planned to go for higher cc as present one is getting older. But this unexpected and unethical tax hike has hold me back again.
I really don't know they can categorised it as luxury if it crosses 350 cc?? It's another political gamic only to collect money.

[IBR_Kritik]

@baruah.charlie I agree with your point, at least they should set this threshold to 500CC or multiple cylinder. For now you may consider Triumph 400CC line up or KTM 390 Adv as they are not increasing prices. I guess Hero is also absorbing GST hike on HD X440. not sure about that. Support #TwoWheelsOneGST

[Kshitij]

The things is, 350 is too low a datum for a GST slab. Let it be higher, say, 700-800cc.. Makes sense that way when considering 'luxury' (in terms of the price that one is willing to pay)