GST on Two-Wheelers in India (2026): Bikes & Scooters
After GST 2.0, two-wheelers up to 350cc are taxed at 18% (down from 28%), while motorcycles above 350cc attract the 40% demerit rate. Here's the complete guide.
Part of: The Complete GST Guide for Small Business in India (2026)
Two-wheelers were one of the biggest winners of GST 2.0. From 22 September 2025, mass-market motorcycles and scooters (engine capacity up to 350cc) moved from 28% to the 18% standard slab, making most commuter bikes cheaper. High-capacity motorcycles above 350cc, treated as a luxury item, attract the new 40% rate.
Quick answer: two-wheelers up to 350cc are 18% GST; motorcycles above 350cc are 40%.
GST rates & HSN codes
| Item | HSN | GST rate |
|---|---|---|
| Motorcycles & scooters up to 350cc | 8711 | 18% |
| Motorcycles above 350cc | 8711 | 40% |
| Electric two-wheelers (EV) | 8711 60 | 5% |
| Two-wheeler parts & accessories | 8714 | 18% |
What changed
- Commuter bikes/scooters ≤350cc: 28% → 18%, the change most buyers feel.
- Premium/superbikes >350cc: now 40% under the demerit slab.
- Electric two-wheelers stay at the concessional 5% to support EV adoption.
General information only, not tax advice. Rates depend on engine capacity and exact classification and can change — verify before billing. Last reviewed: September 2026.
