How GST Price Drop is Making Bikes More Affordable in India

Published: 11/10/2025Author: VuttoCategory: Buy Used BikeReading time: 5 min read

Motorcycles under 350cc now attract 18% GST for affordable pricing.

How GST Price Drop is Making Bikes More Affordable in India

India possesses one of the largest markets for two-wheelers in the world. Regardless of whether they are students, working professionals, or families in small towns, bikes and scooters remain the most practical options and affordable ways to get around. Due to rising fuel prices, increased manufacturing costs, and stricter emissions standards, a brand-new bike has become more costly in recent years.

On the bright side, recently lowering the Goods and Services Tax (GST) has also lowered the pricing on new motorcycles. Not to overcrowd our platform with second-hand motorcycles, but this creates a new market dynamic, for used motorcycles are also more affordable for buyers.

GST and Motorcycle Pricing in India

The Goods and Services Tax (GST) is a unified indirect tax on goods and services. Before GST, buyers paid multiple central and state taxes which led to vehicles being over-priced. The introduction of GST, in 2017, placed motorcycles into a slab of 28%. In essence, motorcycles would now be treated as luxury items, subject to higher taxation.

Later, the government recognized that motorcycles and scooters below 350cc in India were more of a necessity rather than a luxury. They revised the tax to 18% for motorcycles and scooters under 350cc, which ultimately brought down the showroom and on-road prices for these commuter and mid-capacity bikes.

Effects of the GST Price Reduction on the Used Motorbike Market

Although the GST is applied mainly to new cars and motorcycles, the effects are quite apparent on second-hand motorbikes as well.

Nowadays, people who are purchasing new motorbikes to use still have options, but used motorbike markets are continuing to do well — especially on good, reputable platforms like Vutto, which sells used bikes that are like new and competitively priced to give sellers good offers fast.
Lowered reference pricing: Since the new motorbikes are cheaper than before, owners of second-hand motorbikes also have to lower their price, making used bikes cheaper.
A better prospect for upgrading: Owners of old motorbikes are not hesitant to sell their old motorbikes to buy a new GST-adjusted model, thereby shifting more inventory to the second-hand market.
Better ownership prospects: Used motorbikes are typically 30-50% lower than the below GST prices. The new calculated prices make second-hand bikes a better option.

Example of Price Impact

For instance, a commuter bike that earlier cost about ₹1,02,000 (on-road) when GST was 28%. After the GST is reduced to 18%, the on-road price may decrease by ₹7,000–₹10,000.

Hence, the same bike which is already second-hand, will also have to be priced lower in the resale market—for the benefit of those looking for value for money.

Why Buy a Pre-owned Bike Via Vutto?

At Vutto, we take the difficulty out of buying a pre-owned bike by making it easy, transparent, and affordable, especially now that GST increases have made two-wheelers easier on the wallet. Here’s why riders buy from us:

Quality check: With every bike you can be assured the bike passes a free home inspection to make sure it is ready for you and reliable.
Best price available: Prices are reflective of the latest GST affordability, meaning you get a bike at the best possible market price.
Hassle-free: Vutto handles the RC transfer, so you can focus on riding.
Transparency: There are absolutely no extra fees, middlemen, just verified bikes and transparent pricing to confirm the price.
Immediate help: Vutto is here to help you through the entire process. Whether it is selecting a bike or completing the bike transfer. With Vutto, you can get a reliable pre-owned bike at a price you can afford, fast, easy and totally stress-free.

FAQs

Q1: Does GST affect the cost of second-hand bikes directly?

A: No, GST is mostly for new bikes but the reduced cost of new bikes means that the cost of second hand bikes is generally lower.

Q2: If I buy a used bike after the GST changes, will my EMI be lower?

A: Yes, since the price of second-hand bikes fall in line with market trends. The loan amount and EMI will also be lower.

Q3: Is it still better to buy a used bike rather than a new bike after GST changes?

A: Yes! A used bike will still be 30-50% cheaper than a brand new bike, even after the GST changes.

Q4: Where can I find the best-priced second hand bikes?

A: You can sell and purchase directly with Vutto you will receive a fair price, with no middleman, along with a full RC transfer support service and free services.

Final Thoughts

The reduction of the GST price has facilitated bikes becoming more affordable. For value-conscious customers, this is an ideal time to purchase a pre-owned bike, as the increase in supply and new adjusted resale pricing has created opportunities for customers. With Vutto, you can sell your old bike easily, or buy a pre-owned bike with all the benefits — free home inspection and pickup, instant payment, and the complete transfer of the RC all at a fair price.