GST Impact And New Compliances : Automobile

GST Impact And New Compliances : Automobile

GST | Written by : Suryaa Desk| Updated: Sat, Jul 08, 2017, 05:36 PM

GST Impact And New Compliances : Automobile


According to the law on GST, it appears that all Sale & services in relation to Auto mobile would be subject to levy of GST as the same is to be treated as ‘supply’.

GST Rate for Cars & Bikes:

GST is levied in 5 rates in India, namely NIL, 5%, 12%, 18% and 28%. With implementation of GST, overall car prices are expected to get cheaper and more standardized due to the harmonization in GST rate across India. Cars are classified under Chapter 87 of the HSN Codeand 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 motorised or otherwise mechanically propelled are taxed at 5% GST Rate.

·         12% GST Rate

The following types of vehicles including tractors, bicycles, two wheelers are taxed at 12% GST rate.

• Tractors (except road tractors for semitrailers 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 motorised

•  Parts and accessories of bicycles and other cycles (including delivery tricycles), not motorised

•  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 handicapped 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%.

•  Motor 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 transport of physically handicapped persons), including station wagons and racing cars 

[other than Cars for physically handicapped 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, motorised, whether or not fitted with weapons, and parts of such vehicles.

•Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without sidecars; 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%