Quick Overview:
- Govt may simplify GST into just two slabs — 5% & 18%
- Two-wheelers could shift from 28–31% GST down to 18%
- Industry leaders call bikes a necessity, not a luxury
- Lower costs may boost rural mobility & festive season sales
The Festive Season May Bring Relief on Two-Wheelers
Every year, Diwali brings light, joy, and shopping sprees across India. But this year, it could bring something extra special — cheaper two-wheelers. If the government goes ahead with its plan to simplify GST, the tax on motorcycles and scooters could fall from the current 28–31% to just 18%.
For millions of Indians, this isn’t just about saving a few thousand rupees. It could mean that a student finally buys their first scooter, a family upgrades from a cycle to a motorcycle, or a rural household gets the mobility they’ve long needed. In short, it could be a festive season full of motion.
The Current Scenario: Why Two-Wheelers Feel Heavy on the Pocket
At present, the tax system isn’t exactly kind to two-wheeler buyers. All petrol-powered bikes and scooters face 28% GST, while bigger bikes above 350cc attract an additional 3% cess, making it 31%.
This has kept prices inflated, pushing many buyers — especially in small towns and villages — to postpone purchases. And that’s ironic, because for a huge chunk of India, two-wheelers aren’t a luxury at all. They’re the first step toward freedom, employment, and mobility.
What’s Changing: The Idea of “GST 2.0”
The government’s new plan, informally called GST 2.0, aims to simplify the maze of tax slabs. Instead of 5%, 12%, 18%, and 28%, the new structure could have just two:
- 5% for essentials
- 18% for everything else — including two-wheelers
That means two-wheelers would no longer be stuck in the “luxury” tax bracket. Instead, they’d be treated as everyday transport — just as they should be.
A Look at the Difference
| Segment | Current GST Rate | Proposed GST 2.0 Rate | What It Means for Buyers |
|---|---|---|---|
| Scooters & commuter bikes (100–125cc) | 28% | 18% | Easier entry into mobility, lighter monthly EMIs |
| Premium bikes (250–350cc) | 28% | 18% | ₹15,000–25,000 back in the buyer’s pocket |
| Big bikes (above 350cc) | 31% (incl. cess) | 18% | Huge savings for riders chasing long-ride dreams |
Industry’s Voice: “Two-Wheelers Are Everyday Lifelines”
It’s not just buyers cheering for this change. The Society of Indian Automobile Manufacturers (SIAM) has been pushing for this exact reform for years. Their argument is simple: bikes and scooters are essential tools of mobility, not luxury toys.
Manufacturers like Hero MotoCorp and Honda Motorcycle & Scooter India (HMSI) have echoed the same sentiment. From small shop owners who use scooters for daily errands, to delivery agents zipping through crowded streets, to rural families relying on motorcycles as their only vehicle — two-wheelers are the true workhorses of India.
Some industry voices are even urging the government to go further by giving extra tax breaks to alternative-fuel two-wheelers, such as CNG or flex-fuel models, to push cleaner mobility.
Why It Matters: More Than Just Tax Cuts
Beyond the numbers, this move has real-world implications:
- Affordability unlocked: A 10–13% drop in taxes directly lowers buying costs.
- Sales revival: The two-wheeler market, sluggish in recent years, could see a surge.
- Rural boost: Motorcycles dominate rural transport, making this a direct relief measure.
- Festive timing: With Diwali being peak season, sales could light up like never before.
Conclusion: A Festive Bonus That Moves India Forward
If the GST cut to 18% does roll out by Diwali, it will feel less like a policy tweak and more like a gift on wheels. It could reshape affordability, revive slowing sales, and — most importantly — make mobility accessible to millions more Indians.
For families, it’s more freedom. For students, it’s independence. For small businesses, it’s efficiency. And for the country, it’s a reminder that two-wheelers aren’t luxuries — they’re the lifeblood of India’s roads.
This Diwali, the glow of diyas might just be matched by the shine of brand-new scooters and motorcycles rolling out of showrooms across the nation.