Two-wheeler will be cheaper before Diwali, government may decrease GST

Two-wheeler will be cheaper before Diwali, government may decrease GST Tezzbuzz | 31/08/2025 03:24:14

New gst on two-wheeles: The Modi government is preparing to give great relief to the general public before Diwali. It is reported that GST on bikes and scooters can be reduced from 28-31 percent to 18 percent directly. If this happens, the prices of two-wheelers will see a huge decline and customers will get direct benefit.

Current tax structure on two-wheeler

Currently, 28 percent GST is imposed on all two-wheelers operating on petrol. At the same time, additional 3 % cess is also applied to bikes with a capacity of more than 350 cc. That is, the total tax rate on these premium bikes is 31 percent. Potential cuts in tax will see a change in the prices of all from small scooters to large bikes.

Government preparations under GST 2.0

According to Bikwale’s report, the government is planning to implement GST 2.0 structure before Diwali. Under this, there is a preparation to bring two-wheelers directly to 18 percent tax slab. For a long time, the auto sector has been demanding that the bike and scooter be seen as an essential transport means rather than luxury items. In this sequence, SIAM (Society of Indian Automobile Manufacturers) also recommended 18 percent GST rate. This initiative of the government will not only benefit customers but it will also prove beneficial for companies.

GST council meeting will be decided

According to the information, the important meeting of GST Council is going to be held on 3 and 4 September. In this meeting, it will be decided that the tax slab will be changed on which products including two-wheelers. If the proposal passes, it will be much cheaper to buy bikes and scooters before Diwali.

How much will be saved?

Suppose the price of a bike is Rs 1 lakh, then the customer can get a direct savings of up to Rs 10,000 if the tax is reduced. This will increase the demand for two-wheeler. If demand increases, companies will have to increase production and it will also create new employment opportunities.

Note

This step of the government will bring great relief for both auto sector and customers. On the occasion of Diwali, if GST is reduced to 18 per cent on two-wheelers, it can prove to be a game-changer for the automobile industry.