Royal Enfield New GST Rate Starting September 22: Which Bikes are cheaper, which are more expensive.
Delhi, September 6, 2025: The Goods and Services Tax (GST) Council has resolved to implement an important reform in the taxes on two-wheelers. The GST on motorcycles with an engine capacity up to 350 cc will now be charged at a lower rate of 18 percent, as compared to 28 percent previously. Conversely, the motorcycles with engine capacity above 350 cc will attract a high 40 percent GST and will be costly to the consumers.
This ruling is also just before the festive season and will seriously affect the prices of Royal Enfield motorcycles, which is currently one of the best selling premium motor cycles brands in India.
Royal Enfield Bikes 350 cc to below to be cheaper.
The company Royal Enfield is primarily focused on the 350 cc segment. Models like:
Hunter 350
Classic 350
Meteor 350
Goan Classic 350
Bullet 350
The earlier 28 percent GST charged on these motorcycles will be reduced to the current 18 percent, and hence their ex-showroom prices will be reduced.
Industry observers believe that customers can save 10,000-15,000, depending on the model that they can buy. In the case of the Hunter 350, the price decrease resulting from the new rates will be approximately 14,000.
This 350 cc range of products contributes an almost 87 percent of the total volumes sold by Royal Enfield. It implies that a significant part of the consumers will be positively impacted by such step and the demand may increase greatly in the periods of Navratri and Diwali.
Bikes Above 350 ccs will be more expensive.
Entry level consumers will no longer feel the pinch, but those customers who want bigger and more powerful Royal Enfield motorcycles will now have to pay more.
Models affected include
Himalayan 450
Guerrilla 450
Scram 440
Interceptor 650
Continental GT 650
Super Meteor 650
Shotgun 650
Interceptor Bear 650
These motorcycles previously paid 28 percent GST and 3 percent cess (in effect 31 percent). They will transfer to 40 percent GST bracket starting on September 22.
Therefore, the price will go up by [?]20,000-24,000 according to the model. The Himalayan 450 might go up to approximately 19,500 to 20,500 and the Interceptor 650 might be forced to 22,000 and beyond.
What is the Reason behind the Tax Structure Change.
The GST Council has divided motorcycles into two different categories.
Mass market motorcycles (up to 350 cc): To stimulate pricing and sales the GST is cut down to 18 percent.
Premium and high capacity motorcycles (over 350 cc): As luxurious goods, these now fall under the 40 percent slab.
The government strategy is to make commuter and mid-end bikes affordable to the masses since it earns more money through luxury or leisure bikes.
How This Impacts Buyers
Lower prices on hot 350 cc models: If you were going to purchase a Classic 350, Bullet, or Hunter, now is the time. Prices would drop considerably post September 22.
Premier segment: Lover of Himalayan or Interceptor 650 will have to pay higher. Others might even postpone their buying options.
Doubt on the reality of prices decreases: It is true that GST burden will be minimized but there is no certainty that all the benefit will be passed over to the purchasers. Some of the margin could be absorbed by manufacturers.
Royal Enfield Sales Prognosis.
Analysts reckon that the 350 ccs segment will record high growth during the festive season.
Sales of high-end motorcycles over 350 ccs may however reduce because of the high increase in tax.
Royal Enfield has been trying very hard in both the categories, however this tax difference could change the demand significantly towards its 350 cc bikes.
The other factor observed by the industry pundits is that Royal Enfield can influence the government to grant the same GST rate to all categories such that the sales are equal.
Summary Table of GST Changes
Segment Engine Capacity Old GST New GST (Effective Sept 22) Impact on Price.
Royal Enfield Hunter 350, Classic 350, Meteor 350, Bullet 350 Up to 350 cc 28% 18% 10,000-15,000 cheaper
Royal Enfield Himalayan, Guerrilla, Interceptor, Continental GT, Super Meteor, Shotgun, Interceptor Bear above 350cc, above 28% + cess above 40% 20,000- 24,000 more expensive
FAQs
Q1. Since when are the new GST rates to take effect?
The new GST structure will be effected on September 22, 2025.
Q2. What Royal Enfield bikes will be cheaper?
Bikes with engine capacity of 350cc and below - Hunter 350, Classic 350, Meteor 350, Goan Classic 350 and the Bullet 350.
Q3. What bikes will get more expensive?
Everything larger than 350cc - Himalayan 450, Guerrilla 450, Scram 440, Interceptor 650, Continental GT 650, Super Meteor 650, Shotgun 650, Interceptor Bear.
Q4. To what extent will the prices of 350 cc bikes go down?
Customers can anticipate saving about [?]10,000 to [?]15,000 depending on the model.
Q5. What will be the additional cost of high end bikes?
Larger motorcycles with bigger engines of over 350 cc may increase in price by 20,000 to 24,000.
Q6. Will this have an impact on electric bikes?
No. There will be no changes in the GST that is paid on the electric two-wheelers as they remain at 5 percent.
Q7. Will the manufacturers transfer the entire gain to the customers?
Although GST rate reduction will reduce the tax burden, manufacturers may not necessarily impart the full benefit. Official revised price lists need to be awaited by buyers.
Final Take
The Royal Enfield company is a victim of the two pronged sword of the new GST reform. On the one hand, it makes its most popular 350 cc line more affordable, and probably, it will increase quantities. Alternatively, it will greatly increase the prices of its high end adventure and cruiser bikes, which will reduce the demand.
The message is easy to understand to buyers when you are considering buying a Royal Enfield less than 350 ccs, you better do it after September 22. However, when it comes to the bigger bikes such as the Himalayan or the 650 cc twins, expect to lose more money.
