Honda Activa: government has made a big decision in the 56th GST Council meeting by rationalizing the tax. Previously, two-wheelers with an engine capacity less than 350cc had 28 percent GST. Now, the rate has been brought down to 18 percent. The new rates will be implemented from 22 September 2025. This will make two-wheelers more affordable and increase sales in the coming festive period.

Impact on Bikes Below 350cc

Two-wheelers with engine capacity below 350cc make up the largest proportion of sales in India. Models like Honda Activa, Hero Splendor, and Bajaj Pulsar will now be cheaper. Due to the lower GST rate, buyers looking to purchase scooters or motorcycles from this segment will save a considerable amount. The move is being viewed as a huge relief for the middle class, who constitute the largest category of two-wheeler purchasers.

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Impact on Motorcycles Over 350cc

For motorcycles over 350cc, the rate of tax has been altered differently. Previously, these vehicles were attracted to 28 percent GST plus 3 to 5 percent cess, totaling approximately 32 percent. With GST 2.0, the cess has been dropped but a uniform 40 percent tax has been added. This will affect premium bikes like Royal Enfield cruisers, which could now become more expensive than before.

How Much Will Splendor Plus Cost After GST Reduction

Hero Splendor Plus is a top-selling commuter bike in India. At present, its ex-showroom price in Delhi is ₹79,426. With the new GST rate, consumers might receive a direct benefit of approximately ₹7,900, lowering the effective price substantially. This reduction in price will make Splendor Plus even more desirable for daily commuters in search of a cheap and fuel-efficient bike.

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Other Expenses Over Ex-Showroom Price

Though the GST reduction brings down the ex-showroom price, one needs to look at other costs as well. The Splendor Plus in Delhi costs ₹6,654 in RTO charges, ₹6,685 in insurance, and roughly ₹950 in other expenses. Adding all this together, the on-road price comes to roughly ₹93,715 currently. With the entire benefit of the GST reduction being passed on, the on-road price will also decrease, making the bike more reasonable for purchase.

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