Royal Enfield Classic 350 GST Rate 2025 | Yamaha Bike GST Update
- Abhinand PS
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- 6 hours ago
- 3 min read
Introduction
Buying a motorcycle in India just got more interesting with the recent Goods and Services Tax (GST) reforms affecting bikes across engine categories. For popular models like the Royal Enfield Classic 350 and various Yamaha bikes, these changes mean significant price adjustments. In this blog, explore the updated GST rates for 350cc motorcycles and above, how they impact prices, and what it means for potential buyers and enthusiasts in 2025.
GST Rate Changes for Royal Enfield Classic 350 and Similar 350cc Bikes
Starting September 22, 2025, the Indian government cut the GST rate for petrol-powered two-wheelers with engine capacities up to 350cc from 28% to 18%. This revision makes iconic models like the Royal Enfield Classic 350 more affordable to Indian riders.
Royal Enfield announced that it will pass the full GST benefit to customers, resulting in savings of up to ₹22,000 on their 350cc motorcycles, including the Classic 350, Hunter 350, Bullet 350, and Meteor 350.
Key Price Reductions
Classic 350 Redditch variant: price cut from around ₹1,97,253 to ₹1,81,800
Classic 350 Chrome variant: price cut by up to ₹18,400
Hunter 350 standard variant: price cut by approx ₹11,700
These price cuts encourage more first-time buyers and riders seeking reliable, mid-sized motorcycles, positively impacting the segment’s growth.
GST Rates for Yamaha Bikes in 2025
Yamaha models with engine capacities up to 350cc also benefit from the reduced 18% GST rate, making bikes like Yamaha FZ, Yamaha Fazer, and Yamaha YZF-R15 more accessible. This aligns with government efforts to support consumers and boost demand in the mid-range motorcycle category.
However, Yamaha models with bigger engines, such as those above 350cc, will attract the increased GST rate of 40%, marking a significant pricing impact similar to Royal Enfield's bigger motorcycle ranges.
What GST Changes Mean for Buyers in 2025
The GST reduction for sub-350cc bikes is great news for Indian consumers, enabling better pricing on popular motorcycles with robust performance and style. Meanwhile, buyers eyeing premium or higher capacity motorcycles need to factor in increased prices due to the hike in GST from 28% to 40%.
These reforms are designed to balance affordability, taxation, and government revenue while stimulating demand in the highly competitive Indian two-wheeler market.
Key Facts Table: GST Rates & Price Impact (2025)
Category | GST Rate Before | New GST Rate | Price Impact |
Two-wheelers ≤ 350cc | 28% | 18% | Price reduction up to ₹22,000 |
Two-wheelers > 350cc | 28% + 3% cess | 40% | Significant price increase |
Royal Enfield Classic 350 | ₹1,97,253 | ₹1,81,800* | Saving up to ₹18,400 |
Yamaha Sub-350cc Models | 28% | 18% | Moderate price reduction |
*Ex-showroom prices, effective September 22, 2025
Related Articles
For official GST policies, visit India GST Portal and for updated bike prices check BikeWale.
FAQs - GST on Royal Enfield & Yamaha Bikes in 2025
Q1: What is the new GST rate for Royal Enfield Classic 350 in 2025?
The GST rate for Classic 350 has been reduced from 28% to 18%, bringing noticeable price cuts from September 22, 2025.
Q2: Are Yamaha bikes benefitting from the GST cut?
Yes, Yamaha models up to 350cc attract the reduced 18% GST, making them more affordable for buyers.
Q3: Will bigger motorcycles become more expensive under the new GST rates?
Yes, bikes with engines above 350cc, including larger Royal Enfield and Yamaha models, now attract a higher GST rate of 40%.
Conclusion
The 2025 GST reforms mark a pivotal moment for two-wheeler buyers across India, especially for mid-capacity motorcycles like the Royal Enfield Classic 350 and Yamaha’s sub-350cc range. Reduced taxes mean better deals and increased accessibility, encouraging many new riders to experience iconic bikes with classic appeal. Buyers looking for larger engines should prepare for price hikes but can evaluate their options before the new pricing is effective.
Stay tuned for the latest updates on bike prices, reviews, and market trends here.
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