OPINION: The Great Sin Tax Levied On 350cc+ Bikes Isn’t Fair

  • Published September 13, 2025
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A price-based GST slab rather than basing it on cubic capacity would have not hurt the aspirations of emerging Indian performance biking enthusiasts

Bikes Get More Expensive, Cars Get Cheaper

Private jets, yachts, bikes above 350cc, and helicopters. Managed to spot the odd one out. You didn’t? Neither did the government. And to the 1 percenters who are feeling agitated, hang in there. But to understand the core reason behind such an uproar isn’t anger, it is the frustration that comes from failing to be acknowledged. 

But first, let’s clear the air around the GST rate on sinful bikes. Every piece of ‘content’ that you might have seen thus far would have mentioned that you will now have to pay 40% GST on bikes above 350cc. What the majority of communication failed to state is that such bikes already bundled in 31 percent tax into their ex-showroom prices. So the effective rise is 9 percent – not a minor bump, something that will pinch pockets.

KTM 390 Duke Will Get More Expensive With GST 2.0

For instance, the KTM 390 Duke is currently priced at Rs 2.97 lakh (ex-showroom). That sub-Rs 3 lakh sticker price is inclusive of the earlier 31 percent GST. Going forward, the 390 Duke isn’t going to be priced 40% higher than that. To put it simply, you’ll have to deduct 31% from Rs 2.97 lakh and then add 40% to the result. This means the new ex-showroom price could be somewhere in the ballpark of Rs 3.17 lakh, which if you remember was the actual price tag of the bike when first launched in 2023. Hence, those lucky buggers who got their 390 Dukes in the past six months can gleefully rejoice. 

Where the frustration and disappointment arises is from the fact that as per the new GST slabs, all cars have become cheaper – that includes those that cost upwards of Rs 50 lakh as well. Bringing home an Audi, Mercedes-Benz, BMW, Jaguar, Land Rover, Ferrari, or Porsche doesn’t seem to be viewed as luxury or sin. In fact, in the majority of these cases, the price difference will allow you to buy two or more ‘sinful’ bikes!

Land Rover Defender Gets Cheaper

The one-formula-fits-all logic doesn’t work the same for cars and bikes, and I get that. But perhaps a different approach would have been more appreciative. Instead of being bullish on cubic capacity, a pricing-based strategy would have been far more digestible. Bikes up to Rs 5 lakh could have very well deserved on getting the benefit of reduced prices. And anything above that, bikers are willing to pay for the ‘luxury’ without cribbing.

Yamaha R3 Will Get Cheaper, But Aprilia RS 457 Will Be More Expensive

In the current scenario, the new and improved Bajaj Pulsar NS400Z costs under Rs 2 lakh will have higher tax levied on it, while the Yamaha R3 – an imported bike – costs Rs 3.6 lakh should ideally become more affordable. You see how that’s wrong. A price cap of Rs 5 lakh would have made both of these just as desirable and perhaps have boomed the industry as a whole.

Bajaj NS400Z Will Get More Expensive

Buying a sub-500cc bike or a 650cc bike has been an achievable dream for many. After solving for family responsibilities, EMIs, loans, future savings and more did many think of perhaps indulging in a little bit of fun. But it seems humein buri nazar lag gayi hai and the only thing that we can do now is save up a bit more and put a kala teeka before heading out to purchase our sinful luxuries.

KTM 390 Duke R Video Review

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