India, Aug. 27 -- The proposed Goods and Services Tax (GST) regime overhaul is poised to make small-capacity two-wheelers cheaper, with the current 28 per cent rate to be brought down to 18 per cent for motorcycles and scooters up to 350 cc. However, buyers interested in bigger bikes will have to shell out more once the new slabs are implemented. Under the proposed changes, motorcycles displacing 350 cc and higher will face a higher GST rate of 40 per cent.

The government of India introduced the GST regime in 2017 with a four-slab tax structure for goods and services: 5, 12, 18 and 28 per cent. The proposed change is part of a broader effort to simplify GST by eliminating the 12 per cent and 28 per cent slabs and moving forward with just...