New GST on Bikes and Two-Wheelers in India: Rates, HSN Codes & Buyer Insights
Quick Summary
- New GST rates in India for bikes effective from Sep 22, 2025, are 40% for petrol/diesel bikes over 350cc, 18% for those 350cc or below, and 5% for electric bikes.
- The old GST rate was 28% for all petrol/diesel two-wheelers, while electric bikes remained at 5% to promote green mobility.
- HSN Code 8711 is used for all two-wheelers, including bikes and scooters, for GST filings.
- Electric bikes offer significant tax savings compared to petrol bikes, with a GST of 5% versus 28%.
Buying a bike or scooter is one of the most popular transport choices for Indian consumers, thanks to its affordability and convenience. But before you hit the road, it’s important to understand the taxes involved—especially the Goods and Services Tax (GST). This blog breaks down the GST rates on two-wheelers in India, including electric bikes HSN codes , and how GST affects your total cost.
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New GST on Bikes in India
Two-wheelers such as motorcycles, scooters, and electric bikes fall under the Goods and Services Tax (GST) system in India. The applicable GST rate depends on the engine capacity and type of vehicle, such as petrol, diesel, or electric.
With the GST changes effective after 22 September 2025, the taxation structure for bikes has been updated to differentiate between high-capacity motorcycles and smaller two-wheelers, while electric bikes continue to benefit from a lower GST rate to encourage eco-friendly transportation.
No compensation cess applies to bikes under this structure.
GST Rate on Bikes in India
| Vehicle Type | Engine Capacity | GST Rate (After 22 Sept 2025) |
GST Rate (Before 22 Sept 2025) |
|---|---|---|---|
| Petrol/Diesel Bikes | ≤ 350cc | 18% | 28% |
| Petrol/Diesel Bikes | > 350cc | 40% | 28% |
| Electric Bikes / Scooters | All battery capacities | 5% | 5% |
(After 22 Sept 2025) 18%
(Before 22 Sept 2025) 28%
(After 22 Sept 2025) 40%
(Before 22 Sept 2025) 28%
(After 22 Sept 2025) 5%
(Before 22 Sept 2025) 5%
HSN Code for Bikes and Scooters
All motorcycles, scooters, and mopeds fall under HSN Code 8711, which covers:
- Petrol and diesel motorcycles
- Scooters and mopeds
- Electric two-wheelers
| Product Description | HSN Code | GST Rate |
|---|---|---|
| Petrol/Diesel Two-Wheelers | 8711 | 18% – 40% |
| Electric Two-Wheelers | 8711 | 5% |
Manufacturers, dealers, and retailers must use the correct HSN code on invoices and GST filings to ensure proper tax reporting.
Input Tax Credit (ITC) Rules for Two-Wheelers
In most situations, Input Tax Credit (ITC) is not allowed on two-wheeler purchases, even if the buyer is GST registered.
However, ITC can be claimed in certain cases:
- When the vehicle is purchased for resale (e.g., bike dealers or showrooms)
- When used for transporting goods or passengers (such as delivery fleets or rental services)
- When used for training purposes, such as driving schools
These exceptions allow businesses to claim GST credit on the purchase of motorcycles used in taxable operations.
GST on Bike Accessories and Spare Parts
Bike accessories and spare parts are taxed separately from the motorcycle itself under GST. Under the revised GST rationalisation, most bike accessories and components now attract 18% GST.
| Bike Accessory / Part | GST Rate (After 22 Sept 2025) |
|---|---|
| Helmets | 18% |
| Bike covers, seat covers | 18% |
| Tyres and tubes | 18% |
| Engine parts, mirrors | 18% |
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(After 22 Sept 2025) 18%
(After 22 Sept 2025) 18%
(After 22 Sept 2025) 18%
(After 22 Sept 2025) 18%
How to Calculate GST on Two-Wheelers
Let’s look at an example:
Buying a 125cc petrol scooter worth ₹90,000
- GST @18% = ₹16,200
- Total Invoice = ₹90,000 + ₹16,200 = ₹1,06,200
Buying an electric scooter worth ₹1,00,000
- GST @5% = ₹5,000
- Total Invoice = ₹1,00,000 + ₹5,000 = ₹1,05,000
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Final Thoughts
Understanding the GST on bikes and scooters helps buyers make informed financial decisions. While petrol-powered two-wheelers attract 18% GST, switching to electric alternatives offers major tax and environmental benefits. Whether you’re buying for personal use or business, make sure to ask for proper invoices and check the tax components to know what you’re paying for.
