Archive · 23 Sep 2025
GST 2.0: Car and Bike Prices Adjusted in India
India implemented GST 2.0 on September 22nd, affecting car and bike prices.
Smaller cars became cheaper because of lower taxes.
SUVs and larger cars also saw price cuts, although they remain in a high tax bracket.
Bikes under 350cc became cheaper, while bigger bikes got more expensive.
Electric vehicle prices remained the same.
Car and bike prices will vary across models and brands.
GST 2.0 took effect across India on September 22.
Compact cars (under 4,000 mm and specific engine sizes) saw reduced GST rates.
SUVs and larger cars now fall under a 40% tax slab.
Motorcycles and scooters up to 350cc now have a reduced GST.
Electric vehicles continue to be taxed at 5%.
- Who
- Consumers, Automakers
- What
- Changes in vehicle prices due to GST restructuring
- When
- September 22
- Where
- India
- Why
- Revised Goods and Services Tax structure
Manufacturers
Consumers
Pricing Strategy
Manufacturers
Will monitor price changes to strategize sales
Consumers
React to the prices changes based on personal finance
- Policy Name
- GST 2.0
- Implementation Date
- September 22
- Compact Cars
- 18% GST
- Larger Cars & SUVs
- 40% GST
- Motorcycles/Scooters (<=350cc)
- 18% GST
- Motorcycles/Scooters (>350cc)
- 40% GST
- Electric Vehicles
- 5% GST
Sources
New GST Cars And Bikes Prices Live Blog: Check New Rates Of All Brands And Models
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