GST Revision on Cars and Bikes 2025 – What It Means for You

GST Revision on Cars and Bikes: What It Means for You 🚗🏍️

On 3rd September 2025, India announced a major GST revision on cars and bikes. This change is great news for buyers. Prices are now lower across hatchbacks, SUVs, and two-wheelers.

At Carfreaker, we’ve broken down the new tax rates, real savings, and what it means for you.

📉 Old vs New GST Rates on Cars

Earlier, car taxes were high—up to 28% plus cess. Now, most vehicles are taxed at 18%. That means big savings.

Real Examples:

Maruti Baleno (Hatchback)

• Ex-Showroom: ₹7.5 lakh
• Old On-Road: ₹9.05 lakh
• New On-Road: ₹8.26 lakh 👉 Save ₹79,000

Hyundai Creta (Midsize SUV)

• Ex-Showroom: ₹15 lakh
• Old On-Road: ₹18.85 lakh
• New On-Road: ₹15.34 lakh 👉 Save ₹3.5 lakh

🏍️ GST Revision on Bikes

The GST revision on cars and bikes also benefits two-wheelers. Bikes under 350cc saw the biggest drop.

Hero Splendor Plus

• Ex-Showroom: ₹80,000
• Old On-Road: ₹1.02 lakh
• New On-Road: ₹94,400 👉 Save ₹7,600

Royal Enfield Classic 350

• Ex-Showroom: ₹2 lakh
• Old On-Road: ₹2.56 lakh
• New On-Road: ₹2.36 lakh 👉 Save ₹20,000

Kawasaki Ninja 650 (Premium Bike)

• Ex-Showroom: ₹7 lakh
• Old On-Road: ₹10.15 lakh
• New On-Road: ₹9.8 lakh 👉 Save ₹35,000

🌍 How India Compares Globally

Even after the GST revision on cars and bikes, India’s taxes are still higher than some countries—but much better than before.

📊 Quick Price Comparison

🔗 Supreme Court & E20 Fuel Policy

Alongside the GST revision on cars and bikes, the Supreme Court approved the E20 fuel mandate. This means 20% ethanol-blended petrol will be used across India.

It supports cleaner fuel and goes hand-in-hand with lower vehicle costs. But it also raises questions about older vehicle compatibility.

✅ What This Means for Buyers

Good News:

• Cars and bikes are cheaper
• Middle-class families save more
• Auto sales may rise
• Manufacturing gets a boost

Things to Note:

• Big SUVs still have higher taxes
• India’s rates are better, but not the lowest globally

Final Thoughts from Carfreaker

The GST revision on cars and bikes is a big win for Indian buyers. If you’ve been waiting to upgrade, now’s a smart time. Lower prices and cleaner fuel policies make this a turning point for the auto industry.

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