The GST Council is currently reviewing tax slabs for automobiles in India. According to a report by Bikedekho, one of the proposals under discussion will see motorcycles with engines above 350cc could move into a higher bracket, attracting 40 per cent GST rate instead of the present 28 per cent.
Currently, all two-wheelers in India fall under the 28 per cent GST slab, regardless of engine size. The proposed change would create a new tax category for larger motorcycles, aimed at premium bikes and high-capacity models sold by several manufacturers.
Royal Enfield Classic 650
If the change is approved, motorcycles above 350cc could see a sharp increase in prices. This would impact models from Royal Enfield, KTM, Harley-Davidson, Triumph, Honda BigWing, BMW Motorrad, and other premium brands offering larger-displacement motorcycles in India.
Royal Enfield could be among the most affected manufacturers, as several of its motorcycles feature engines above 350cc. Popular models like the Classic 350 narrowly escape the slab, but the Himalayan 450 and all the motorcycles based on the 650 twin engine fall within the proposed new GST tax range.
KTM 390 Adventure
Other premium motorcycle makers would also face a significant price increase. Harley-Davidson and Hero’s’s 440cc models would qualify for the higher GST bracket, along with Triumph’s 400 series of motorcycles and KTM’s 390 lineup that is manufactured here in India. While BMW’s 310cc series will escape the bracket, its bigger bikes will not.
Industry bodies are expected to present their views before the GST Council takes a final call. Manufacturers are likely to highlight the potential impact on sales volumes, given that premium motorcycles already face high import duties along with the existing GST slab.
If cleared, the move would create a sharper tax distinction between mass-market motorcycles and premium offerings. The higher tax slab could bring two-wheelers above 350cc in line with luxury items, similar to how premium cars attract additional cess over the base GST rate.
The proposal is still under discussion, and no final date has been set for the council’s decision. Industry players remain cautious, while buyers in the premium motorcycle market await clarity on whether prices will rise substantially in the near future.