The GST Council of India recently announced a big relief for bike lovers, especially for those planning to buy mid-segment motorcycles like the Royal Enfield Classic 350. The government reduced the GST rate for bikes up to 350cc from 28% to 18%, effective 22 September 2025.
This move directly impacts the on-road price of popular bikes and makes them more affordable. Let’s dive into what this means for Royal Enfield buyers, compare old and new prices, and check how much you can save.
Introduction
The Royal Enfield Classic 350 has been a favorite among Indian riders for decades. Known for its timeless design and reliable performance, it’s often the top choice for enthusiasts who want a powerful yet stylish motorcycle.
Now, thanks to a GST rate cut, owning a Classic 350 just became more affordable. The government’s decision to reduce GST from 28% to 18% on bikes up to 350cc has significantly lowered the tax burden.
What is GST and Why It Matters for Bikes
GST (Goods and Services Tax) is a unified tax applied on the sale of goods and services in India.
For bikes, GST directly affects the ex-showroom price, which is the base for calculating other charges like:
RTO fees
Insurance
Road tax
When GST is high, the overall bike cost shoots up. A reduction like this brings immediate relief to buyers.
Old GST Rate vs. New GST Rate
Before September 2025:
All motorcycles above 150cc were taxed at 28% GST (considered premium or luxury).
After the GST revision:
Bikes ≤350cc now fall under 18% GST.
Bikes >350cc remain at 28% or higher depending on category.
This directly impacts Royal Enfield’s 350cc lineup, including:
Meteor 350
Bullet 350
Hunter 350
Royal Enfield Classic 350 Overview
The Classic 350 is powered by a 349cc, single-cylinder, air-oil cooled engine, delivering 20.2 BHP and 27 Nm torque.
It’s available in multiple variants:
Redditch Series
Halcyon Series
Signals Edition
Dark Edition
Chrome Edition
Ex-showroom prices range between ₹1.95 lakh to ₹2.25 lakh depending on the variant and city.
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Old vs. New GST Calculation for Classic 350
Let’s take an example with an ex-showroom price of ₹2,00,000:
Old GST Calculation (28%)
₹2,00,000 × 28% = ₹56,000
Total with GST = ₹2,56,000
New GST Calculation (18%)
₹2,00,000 × 18% = ₹36,000
Total with GST = ₹2,36,000
Direct GST Savings
₹56,000 – ₹36,000 = ₹20,000 saved
Comparison Table: Old vs. New GST for Classic 350
| Details | Old GST (28%) | New GST (18%) | Savings |
|---|---|---|---|
| Ex-Showroom Price | ₹2,00,000 | ₹2,00,000 | – |
| GST Amount | ₹56,000 | ₹36,000 | ₹20,000 |
| Final Price (Incl. GST) | ₹2,56,000 | ₹2,36,000 | ₹20,000 |
Impact on On-Road Price
The on-road price includes:
Ex-showroom price + GST
RTO charges (approx 10% of ex-showroom)
Insurance (approx ₹8,000 – ₹10,000)
Example for ₹2 lakh ex-showroom bike:
Old On-Road Price = 2,56,000 + 20,000 + 9,000 = ₹2,85,000
New On-Road Price = 2,36,000 + 20,000 + 9,000 = ₹2,65,000
Final Savings: Around ₹20,000 directly passed to the buyer.
Top 10 Royal Enfield Bikes – Old vs. New GST
| Bike Model | Ex-Showroom Price (₹) | Old GST (28%) | New GST (18%) | Savings (₹) |
|---|---|---|---|---|
| Classic 350 | 2,00,000 | 56,000 | 36,000 | 20,000 |
| Bullet 350 | 1,80,000 | 50,400 | 32,400 | 18,000 |
| Hunter 350 | 1,75,000 | 49,000 | 31,500 | 17,500 |
| Meteor 350 | 2,05,000 | 57,400 | 36,900 | 20,500 |
| Scram 411 (411cc) | 2,30,000 | 64,400 | 64,400* | 0 (No GST cut) |
| Himalayan 450 (450cc) | 2,80,000 | 78,400 | 78,400* | 0 (No GST cut) |
| Continental GT 650 (650cc) | 3,50,000 | 98,000 | 98,000* | 0 (No GST cut) |
| Interceptor 650 (650cc) | 3,30,000 | 92,400 | 92,400* | 0 (No GST cut) |
| Super Meteor 650 (650cc) | 3,80,000 | 1,06,400 | 1,06,400* | 0 (No GST cut) |
| Shotgun 650 (650cc) | 3,90,000 | 1,09,200 | 1,09,200* | 0 (No GST cut) |
Note: GST reduction only applies to bikes ≤350cc. Larger bikes remain at the old tax slab.
Why the GST Cut Happened
The government reduced GST on bikes up to 350cc to:
Boost two-wheeler sales in rural and urban areas
Make mid-range bikes affordable for the middle class
Encourage manufacturers like Royal Enfield to expand production in India
Who Benefits the Most
Buyers of Classic 350, Bullet 350, Meteor 350, Hunter 350
Students and young riders looking for affordable premium bikes
Rural buyers upgrading from entry-level motorcycles
Impact on Royal Enfield Sales
Dealers report a surge in bookings for Royal Enfield 350cc bikes right after the announcement.
Some outlets are even offering festive season discounts on top of the GST cut.
Tips Before Booking Your Classic 350
Verify the updated on-road price with your dealer.
Compare RTO charges in nearby cities for potential savings.
Check for extra dealer handling fees — negotiate if possible.
Consider festive offers for maximum benefits.
Buying During Festive Season
Buying during festive months like Diwali or Dussehra can get you:
Cashback offers
Free accessories
Additional dealer discounts
Combine these with the GST cut to maximize savings.
Future of GST on Bikes
Experts believe that:
If sales increase significantly, there might be further rationalization of GST for motorcycles.
Electric two-wheelers already enjoy 5% GST, and petrol bikes may gradually see reductions for environmental reasons.
Conclusion
The GST reduction from 28% to 18% on bikes up to 350cc has made the Royal Enfield Classic 350 and similar models much more affordable.
Buyers can now save up to ₹20,000 or more on taxes alone, making this the perfect time to bring home your dream Royal Enfield.
FAQs
1. What is the new GST rate for Royal Enfield Classic 350?
The GST rate has been reduced to 18% from the previous 28%.
2. Which Royal Enfield bikes benefit from the GST cut?
Classic 350, Bullet 350, Hunter 350, and Meteor 350.
3. Will larger bikes like Himalayan 450 get cheaper?
No, the GST cut is only for bikes ≤350cc.
4. How much can I save on a Classic 350 purchase now?
You can save approximately ₹20,000 on GST alone.
5. Do I need to pay GST on RTO and insurance too?
No, GST is only applied on the ex-showroom price of the bike
