Archive · 7 Sep 2025
Royal Enfield Bikes: Price Hikes Due to New GST
The Indian government is changing the tax on motorcycles.
Bikes with smaller engines (under 350cc) will become cheaper because their tax (GST) is going down.
However, bigger, more expensive bikes will get more expensive because their tax is going up.
This affects brands like Royal Enfield, making models like the Guerilla 450, Himalayan 450, Super Meteor 650, and Interceptor 650 cost more.
The government calls this a 'Sin Tax'.
India is implementing a new Goods and Services Tax (GST) structure.
Motorcycles with engines up to 350cc will have an 18% GST, a decrease.
Motorcycles with engines above 350cc will have a 40% GST, an increase.
Royal Enfield bikes, especially models above 350cc, will become costlier.
The changes take effect from September 22, 2025.
- Who
- Government of India
- What
- Increased GST on motorcycles above 350cc
- When
- From September 22, 2025
- Where
- India
- Why
- To implement a simplified GST structure and target premium bikes
- Affected Brand
- Royal Enfield
- GST on <350cc bikes
- Reduced to 18%
- GST on >350cc bikes
- Increased to 40%
- Implementation Date
- September 22, 2025
- Reason for Hike
- Government 'Sin Tax'
Sources
Classic Legends prices Jawa, Yezdi motorcycles under Rs 2 lakh, passes on full GST 2.0 benefits to riders
Jawa & Yezdi Announces Price Drop Under GST 2.0 Reform - Check New Prices
Classic Legends slashes Jawa and Yezdi prices after GST cut