GST-Rate-for-Cars

GST Rate for Cars

GST Rate for Cars

GST is levied in 5 rates in India, namely NIL, 5%, 12%, 18% and 28%. With the implementation of GST, overall car prices might get cheaper and more standardized due to the harmonization in GST rate across India. Cars are classified under Chapter 87 of the HSN Code, and the following GST rate is applicable for cars.

NIL Rate

There are no vehicles or cars classified under the NIL GST rate.

5% GST Rate

Vehicles classified under HSN Code 8713 – Carriages for disabled persons, whether or not motorized or otherwise mechanically propelled are taxed at 5% GST Rate.

12% GST Rate

The following types of vehicles including tractors, bicycles, two-wheelers shall attract 12% GST rate:

  • Tractors (except road tractors for semi-trailers of engine capacity more than 1800 cc) [
  • Electrically operated vehicles, including two and three-wheeled electric motor vehicles.
  • Bicycles and other cycles (including delivery tricycles), not motorized
  • Parts and accessories of bicycles and other¬†cycles (including delivery tricycles), not motorized
  • Self-loading or self-unloading trailers for agricultural purposes
  • Hand propelled vehicles (e.g. hand carts, rickshaws and the like); animal-drawn vehicles

18% GST Rate

Cars for physically disabled persons and refrigerated motor vehicles are taxed at 18% GST rate.

28% GST Rate

Majority of the vehicles, including bikes, autos, cars are taxed at 28% under GST. Vehicles, including cars under the following HSN Code descriptions, are taxed at 28%.

  • Vehicles for the transport of ten or more persons, including the driver.
  • Motor cars and other motor vehicles principally designed for the transport of persons (other than those for the transport of physically disabled persons), including station wagons and racing cars [other than Cars for physically disabled persons].
  • Motor vehicles for the transport of goods [other than Refrigerated motor vehicles].
  • Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile workshops, mobile radiological unit)
  • Chassis fitted with engines, for the motor vehicles
  • Bodies (including cabs), for the motor vehicles
  • Parts and accessories of the motor vehicles
  • Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short-distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles.
  • Tanks and other armoured¬†fighting vehicles, motorized, whether or not fitted with weapons, and parts of such vehicles.
  • Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars.
  • Parts and accessories of vehicles
  • Baby carriages and parts thereof
  • Trailers and semi-trailers; other vehicles, not mechanically propelled; parts thereof [other than Self-loading or self-unloading trailers for agricultural purposes, and Hand propelled vehicles (e.g. hand carts, rickshaws and the like); animal-drawn vehicles].

GST Rate for Cars and Bikes

As mentioned above, cars and bikes fall under the 28% GST rate category. Hence, cars and bikes would attract 28% GST. Further, car and bike accessories would also attract 28% GST.

GST Rate for Car Service

The GST rate for car or bike service is 18%. Click here to find GST tax rate for more goods and services.

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