The prices of two-wheelers have come down due to the new GST 2.0 slab. Now you will get the benefit of thousands of rupees on bikes and scooters like Activa and Shine. From 22 September 2025, only 18% GST will have to be paid on two-wheelers up to 350cc.

Honda Motorcycle & Scooter India has given great news to its customers. After the implementation of the new GST slab of the government, the company's popular two-wheelers have now become much cheaper. Earlier, 28% GST and 1% cess were levied on two-wheelers. But now from 22 September 2025, only 18% GST will be levied on two-wheelers with engines up to 350cc and the cess has been completely abolished. Customers will get direct benefit from this and Honda models will now become cheaper by up to Rs 18,887. This list also includes the best-selling Activa scooter and Shine motorcycle.

Taxes on small and hybrid cars are also reduced

• Actually, the new GST 2.0 slab has affected not only two-wheelers but also small and hybrid cars. Now only 18% GST will have to be paid on petrol and petrol-hybrid cars. The same tax rate will also apply to CNG and LPG cars. But the condition for this is that the engine of the car should be 1200cc or less and the length should not be more than 4 meters. The same rule will apply to diesel and diesel-hybrid cars as well. That is, diesel cars up to 1500cc and vehicles up to 4 meters in length will now come under the purview of only 18% GST. This will also provide great relief to customers in the small car segment.

Luxury cars now attract 40% GST

• The government has put luxury and mid-size cars in the 40% GST slab, keeping them in the luxury category. This will include petrol cars larger than 1200cc and diesel cars with more than 1500cc capacity. SUVs, MUVs, MPVs and vehicles with more than 170mm ground clearance will also come under this tax bracket. However, there is also a relief news for the customers here. Earlier, luxury cars were taxed at 28% GST and 22% cess, i.e. a total of 50% tax. Now in the new slab, the cess has been removed and the total tax has been reduced to 40%. This means that the tax on luxury cars has also been reduced by 10%.

Double benefit for customers

• Let us tell you that the new GST slab has given double benefit to the customers. On one hand, while the bikes and scooters of two-wheeler brands like Honda have become cheaper by thousands of rupees, the tax on small cars and hybrid vehicles has also been reduced. On the other hand, even though 40% GST will be levied on luxury cars, but if compared to the old system, there is still a benefit of 10% tax there.