The Central Government has provided significant relief to the general public by amending the GST. This change is crucial for anyone planning to purchase a two-wheeler. Previously, bikes up to 125cc were subject to a 28% GST, but under the new rules, this has been reduced to 18%. This decision will directly benefit smaller bikes sold in the market. These bikes are especially popular among middle-class families, as they are affordable, offer excellent mileage, and are durable.
Now even cheaper
The Honda Shine has always been a great choice in the 125cc segment. Due to its exceptional mileage and durability, it remains in high demand among middle-class families. With the GST reduction, this bike has become even more affordable, which will ease the burden on customers and is expected to boost sales.
To assess the impact of this change on the ground, our team visited a Honda showroom near Sasaram and spoke with manager Tabrez Alam. He explained that the current ex-showroom price of the Honda CB Shine 125 is ₹84,890. Including registration, insurance, and other expenses, its on-road price comes to ₹1,07,730.
A direct benefit of ₹6,000
Tabrez Alam explained that when GST 2.0 is implemented from November 22, 2025, the bike’s ex-showroom price will be reduced by approximately ₹6,100. This will also reduce the on-road price to approximately ₹1,02,685. This means that after the new GST rate is implemented, customers will receive a direct benefit of up to ₹6,000 when purchasing the Honda Shine 125. This relief is especially for those in smaller cities and towns who purchase a vehicle within a limited budget.
Experts believe that this reduction in GST will not only boost bike sales but also revitalize the entire automobile market. The biggest impact of this decision will be seen in smaller cities and towns, where two-wheelers are the primary mode of transportation. Overall, customers will directly benefit from the implementation of GST 2.0, and popular bikes like the Honda Shine 125 will become more accessible.