New GST on Bikes and Two-Wheelers in India: Rates, HSN Codes & Buyer Insights
- The bike gst rate 2026 is 18% for petrol/diesel motorcycles up to and including 350cc, 40% for motorcycles above 350cc, and 5% for electric two-wheelers.
- Before 22 September 2025, petrol/diesel motorcycles generally attracted 28% GST; motorcycles above 350cc also attracted 3% Compensation Cess. Motorcycles, mopeds, and similar motorised two-wheelers are generally classified under HSN 8711 for GST purposes.
- Electric bikes and scooters attract 5% GST, compared with 18% GST for motorcycles up to 350cc and 40% GST for motorcycles above 350cc.
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 gst on bike 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
The bike gst rate is 18% for petrol/diesel motorcycles up to and including 350cc, 40% for motorcycles above 350cc, and 5% for electric two-wheelers.
| 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% |
Vehicle Type
Engine Capacity
GST Rate
(After 22 Sept 2025)
GST Rate
(Before 22 Sept 2025)
Vehicle Type
Engine Capacity
GST Rate
(After 22 Sept 2025)
GST Rate
(Before 22 Sept 2025)
Vehicle Type
Engine Capacity
GST Rate
(After 22 Sept 2025)
GST Rate
(Before 22 Sept 2025)
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% |
Product Description
HSN Code
GST Rate
Product Description
HSN Code
GST Rate
Manufacturers, dealers, and retailers must use the correct HSN code on invoices and GST filings to ensure proper tax reporting.
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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% |
Bike Accessory / Part
GST Rate
(After 22 Sept 2025)
Bike Accessory / Part
GST Rate
(After 22 Sept 2025)
Bike Accessory / Part
GST Rate
(After 22 Sept 2025)
Bike Accessory / Part
GST Rate
(After 22 Sept 2025)
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How to Calculate GST on Two-Wheelers
Let’s look at an example:
Buying a 125cc petrol scooter worth ₹90,000
The gst on bikes 125cc is 18% under the current GST structure.
- GST @18% = ₹16,200
- Total Invoice = ₹90,000 + ₹16,200 = ₹1,06,200
Buying an electric scooter worth ₹1,00,000
The gst on electric scooter is 5%.
- GST @5% = ₹5,000
- Total Invoice = ₹1,00,000 + ₹5,000 = ₹1,05,000
Final Thoughts
Understanding the GST on bikes and scooters helps buyers make informed financial decisions. Petrol and diesel two-wheelers up to and including 350cc attract 18% GST, while motorcycles above 350cc attract 40% GST. Electric two-wheelers attract a lower 5% GST. Whether you’re buying for personal use or business, check the applicable GST rate and ensure you receive a proper tax invoice.
