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Royal Enfield Classic 350 GST Rate: Complete Guide with Prices and Impact
The Royal Enfield Classic 350 is one of the most popular motorcycles in India. Known for its old-school design and reliable performance, it has a strong fan base across cities and small towns alike. But like every vehicle, its price is directly affected by the Goods and Services Tax (GST). Many buyers today search for the royal enfield classic 350 gst rate to understand how much tax they are paying and how recent GST changes impact the final cost of the bike.
In this article, we will explain GST on motorcycles, how it has changed over the years, and how it directly impacts the Royal Enfield Classic 350 price. We will also break down the ex-showroom and on-road price with examples and discuss how recent GST revisions in 2025 have made the Classic 350 more affordable.
What is GST and How it Affects Motorcycles
GST (Goods and Services Tax) was introduced in India on July 1, 2017. It replaced older taxes like VAT, excise duty, and service tax. For vehicles, GST is applied directly to the ex-showroom price.
Earlier, the tax structure was complicated, and buyers had to pay multiple layers of taxes. With GST, things became uniform across the country. Still, the rate applied depends on the category of the vehicle.
- Small commuter bikes usually get a lower tax rate.
- Premium and high-capacity motorcycles are taxed more because the government considers them as luxury or lifestyle products.
Since the Royal Enfield Classic 350 falls in the mid-size motorcycle category, its GST rate plays an important role in its overall affordability.
Historical GST Rates on Motorcycles
When GST was launched in 2017, motorcycles came under the 28% slab. This was slightly lower than the earlier combined taxes of around 30–32%.
But there was an extra rule: bikes with engines above 350cc had to pay an additional 3% compensation cess. That meant motorcycles like the Royal Enfield Himalayan or Interceptor 650 attracted higher taxes.
At that time, the Classic 350 had a 346cc engine, later updated to 349cc in 2021. Since it was below the 350cc mark, it remained at 28% GST without the extra cess.
Over the years, there were requests to reduce GST on two-wheelers. The auto industry argued that bikes are not luxury items but essential for commuting, especially in rural India. However, no major change was made until 2025.
GST Reforms in September 2025
In September 2025, the GST Council made big changes under what is now called GST 2.0. A new simplified tax structure was introduced with only a few slabs:
- 5% for essentials
- 18% as the standard rate
- 40% for luxury or demerit goods
For motorcycles, the rule is now very clear:
- Up to 350cc → 18% GST
- Above 350cc → 40% GST
This is a major relief for popular commuter and mid-size bikes. And it directly impacts the royal enfield classic 350 gst rate, because its 349cc engine keeps it within the 18% slab.
GST Rate for Royal Enfield Classic 350
The Royal Enfield Classic 350 runs on a 349cc single-cylinder engine, producing 20.2 bhp and 27 Nm torque. Since it is under 350cc, it qualifies for the 18% GST slab from September 22, 2025 onwards.
Before this change, the GST rate was 28%, which made the bike more expensive. With the reduction, Royal Enfield has confirmed that it will pass on the full benefit to customers.
This means buyers can now expect price cuts of up to ₹20,000 on different variants of the Classic 350.
Current Ex-Showroom Prices (with 28% GST)
Below are the approximate prices of Classic 350 variants (as of September 2025, Chennai):
| Variant | Price with 28% GST (₹) |
|---|---|
| Redditch (Red) | 1,97,253 |
| Halcyon (Black) | 2,00,157 |
| Heritage Classic | 2,03,813 |
| Heritage Premium | 2,08,415 |
| Signals (Sand) | 2,20,669 |
| Dark (Stealth Black) | 2,29,866 |
| Heritage Chrome | 2,34,972 |
New Prices with 18% GST
After the new GST rate of 18%, prices are expected to fall. Let us calculate an example for better understanding:
- Base cost (before GST): ₹1,54,000 (for Redditch variant)
- Old GST (28%): ₹43,120
- Ex-showroom price earlier: ₹1,97,120
Now with 18% GST:
- New GST (18%): ₹27,720
- New ex-showroom price: ₹1,81,720
That is a saving of around ₹15,400 on just one variant. On-road price will also come down once insurance and road tax are added.
Expected new prices:
| Variant | Expected New Price (₹) |
|---|---|
| Redditch (Red) | 1,81,000 – 1,83,000 |
| Halcyon (Black) | 1,85,000 – 1,87,000 |
| Heritage Classic | 1,89,000 – 1,91,000 |
| Heritage Premium | 1,94,000 – 1,96,000 |
| Signals (Sand) | 2,05,000 – 2,07,000 |
| Dark (Stealth Black) | 2,14,000 – 2,16,000 |
| Heritage Chrome | 2,19,000 – 2,21,000 |
Effect on On-Road Price
The final on-road price includes:
- Ex-showroom price (with GST)
- Road tax (6–10% depending on state)
- Insurance
- Registration charges
So while GST cut reduces the base price, the total saving also depends on the state’s road tax.
Example for Redditch variant:
- Old on-road price: ~₹2,18,000
- New on-road price: ~₹2,01,000
Why the Change Matters for Buyers
The royal enfield classic 350 gst rate change is important for buyers because:
- It makes the bike more affordable for first-time buyers.
- Savings are significant, almost equal to a few months of fuel cost.
- It brings the Classic 350 closer to the price of some 150–200cc bikes, making it a more attractive upgrade option.
Impact on the Market
The cut in GST for sub-350cc bikes will change the motorcycle market in many ways:
- Royal Enfield benefit: Around 90% of Royal Enfield’s sales come from the 350cc range. Lower GST will likely boost its sales further.
- Competitors affected: Brands like Jawa and Benelli, which have some models above 350cc, may face challenges because their bikes will be costlier now.
- Premium bikes hit: Models like the Interceptor 650 and Himalayan 450 will become much more expensive due to 40% GST.
Challenges and Future Outlook
Even though GST has been reduced, there are still some challenges:
- Dealers have to carefully manage old stock purchased at 28% GST.
- States may increase road tax in the future to balance their revenue.
- Premium bikes may see slower sales because of the sharp 40% tax rate.
Looking forward, more reforms could come, especially for electric vehicles, which continue to enjoy just 5% GST.
FAQs on Royal Enfield Classic 350 GST Rate
Q1. What is the GST rate on Royal Enfield Classic 350?
The GST rate is now 18% since September 22, 2025.
Q2. Was the rate different earlier?
Yes, before September 2025, it was 28%.
Q3. Does the GST rate include road tax and insurance?
No. GST is only part of the ex-showroom price. Road tax, insurance, and registration are separate.
Q4. Will Royal Enfield reduce Classic 350 prices after GST cut?
Yes, Royal Enfield has confirmed that it will pass on the benefit. Prices are expected to drop by ₹15,000–₹20,000 depending on the variant.
Q5. What about other Royal Enfield models above 350cc?
Models like the Interceptor 650 and Himalayan 450 will attract 40% GST, making them more expensive.
The royal enfield classic 350 gst rate cut from 28% to 18% is a big relief for buyers. It reduces prices by a good margin, making the Classic 350 even more appealing in the Indian market. With this move, Royal Enfield is expected to gain more customers, especially in small towns and rural areas where affordability plays a major role.
For motorcycle lovers, this is a positive development because the Classic 350 now offers the same charm at a more affordable price.
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