Royal Enfield Himalayan Recall

Middleweight category bikes slapped with 28% GST and 3% cess taking the total tax incidence to 31%; similar to private aircrafts and luxury yachts

Bad news for power bike lovers as 350 cc plus engine powered bikes are to be slapped with 31% tax under GST. According to the new tax structure, the middleweight category bikes will see 28% GST along with 3% cess taking the total tax incidence to 31%. This means the middleweight category bikes are positioned in the same GST slab as the private aircrafts and luxury yachts.

With this, the premium bikes are about to become pricier in the country. Royal Enfield is one of the fastest growing motorcycle brands in the country and with the implementation of GST, the RE models are expected to become significantly pricier as all of these models are powered by 350 cc and bigger engines.

Royal Enfield Classic 500 Squadron Blue

Also read: India Become World’s Biggest Two-Wheeler Market; Overtakes China

Not only the 350 cc plus engine powered bikes, but small cars are also about to be pricier under the new tax structure. The small cars with less than four meter length and upto 1.2-litre petrol engines under the hood will see 28% GST and 1% extra cess taking the total incidence of tax to 29%.


Diesel cars with 1.5-litre or smaller engines will see 31% tax as 3% of additional cess will be levied on these cars. Mid-sized cars, SUVs and luxury cars will draw 15% cess, while the hybrid cars with 1.5-litre plus engines will attract 15% cess along with GST. So far, small cars will become much pricier, while bigger cars could benefit from the new tax system.

Bajaj Dominar 400 (D400) India 15

Also read: Upcoming Bikes Under 900cc in India

India is one of the fastest growing two-wheeler markets in the world. Just a few days back, it became the biggest two-wheeler market in the world leaving behind China. Also, the car market is growing pretty fast in the country in recent few years. It is to be seen, how the manufacturers and buyers respond to the new tax system, as it will surely make a strong influence on the sales car and two-wheeler sales.

Bajaj Dominar 400 Gallery