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Cars is classified under HSN heading 8703. GST as on 26 October 2026: 5%, 18% or 40%.
Rates checked on 26 October 2026 · BooksOn HSN dataset v7, compiled from CBIC notifications
What is the GST rate on Cars?
GST on Cars as on 26 October 2026: 5%, 18% or 40%. Which rate applies depends on the exact code and on how it is sold or supplied; each entry below names the CBIC notification it comes from.
| Old GST rate (before 22 Sep 2025) | New GST rate | Code | What it covers | Notification |
|---|---|---|---|---|
| 5% | 5% | 87 | Electric vehicles running only on battery or external electric power, including electric two-wheelers, three-wheelers and e-bicycles, are taxed at 5%. | 9/2025-CT(R), entry 441 |
| – | 5% | 87 | If you sell fuel cell motor vehicles, including hydrogen vehicles based on fuel cell technology, GST is 5%. | 9/2025-CT(R), entry 440 |
| 18% | 18% | 8703 | Cars for people with orthopaedic disability are taxed at 18%, with a Heavy Industries certificate. The car must be up to 4 metres long, with petrol, LPG or CNG up to 1200cc, or diesel up to 1500cc. | 9/2025-CT(R), entry 536 |
| – | 18% | 8703 | If you sell three-wheeled vehicles, GST is 18%. | 9/2025-CT(R), entry 537 |
| – | 18% | 8703 | Motor vehicles that leave the factory as fully fitted ambulances are taxed at 18%. | 9/2025-CT(R), entry 533 |
| – | 40% | 8703 | Passenger cars and similar motor vehicles, including station wagons and racing cars, are taxed at 40%, except the small cars, hybrids and ambulances given 18%. | 9/2025-CT(R), entry 5 |
| – | 18% | 870321 | If you sell petrol, LPG or CNG cars with engines up to 1200 cc and length up to 4000 mm, GST is 18%. | 9/2025-CT(R), entry 534 |
| – | 18% | 870331 | If you sell diesel cars with engines up to 1500 cc and length up to 4000 mm, GST is 18%. | 9/2025-CT(R), entry 535 |
| – | 18% | 870340 | Petrol-electric hybrid vehicles are taxed at 18% if they are factory-fitted ambulances, three-wheelers, or up to 1200cc and 4 metres long. | 9/2025-CT(R), entry 538 |
| – | 40% | 870340 | Petrol-electric hybrid vehicles over 1200cc or longer than 4 metres are taxed at 40%. | 9/2025-CT(R), entry 6 |
| – | 18% | 870350 | Diesel-electric hybrid vehicles are taxed at 18% if they are factory-fitted ambulances, three-wheelers, or up to 1500cc and 4 metres long. | 9/2025-CT(R), entry 539 |
| – | 40% | 870350 | Diesel-electric hybrid vehicles over 1500cc or longer than 4 metres are taxed at 40%. | 9/2025-CT(R), entry 7 |
GST rate on Cars since 1 July 2017
The rate in force in each period, for old invoices, amended returns and audits. Each change came with a CBIC notification; the rate on any exact date is in the app.
| From | To | GST |
|---|---|---|
| 1 July 2017 | 31 July 2019 | 12%, 18% or 28% |
| 1 August 2019 | 21 September 2025 | 5%, 12%, 18% or 28% |
| 22 September 2025 | today | 5%, 18% or 40% |
The GST rate on Cars is set by the CBIC rate notification entry that covers it. It can depend on how the goods are sold, for example packed and labelled or loose, and many rates changed with GST 2.0 from 22 September 2025. The free BooksOn HSN app shows the rate as on any date since 1 July 2017, with the notification and entry number.
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars
| Code | Description (as in the tariff) |
|---|---|
870310 | Vehicles specially designed for travelling on snow, golf cars and similar vehicles |
87031010 | Electrically operated |
87031090 | Other |
870321 | Of a cylinder capacity not exceeding 1,000 cc |
87032110 | Vehicles principally designed for the transport of more than seven persons, including the driver |
87032120 | Three-wheeled vehicles |
87032191 | Motor cars |
87032192 | Specialised transport vehicles such as ambulances, prison vans and the like |
87032199 | Other |
870322 | Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc |
87032210 | Vehicles principally designed for the transport of more than seven persons, including the driver |
87032220 | Specialised transport vehicles such as ambulances, prison vans and the like |
87032230 | Three-wheeled vehicles |
87032291 | Motor cars |
87032299 | Other |
870323 | Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc |
87032310 | Vehicles principally designed for the transport of more than seven persons including the driver |
87032320 | Three-wheeled vehicles |
87032391 | Motor cars |
87032392 | Specialised transport vehicles such as ambulances, prison vans and the like |
87032399 | Other |
870324 | Of a cylinder capacity exceeding 3,000 cc |
87032410 | Vehicles principally designed for the transport of more than seven persons, including the driver |
87032420 | Three-wheeled vehicles |
87032491 | Motor cars |
87032492 | Specialised transport vehicles such as ambulances, prison vans and the like |
87032499 | Other |
870331 | Of a cylinder capacity not exceeding 1,500 cc |
87033110 | Vehicles principally designed for the transport of more than seven persons, including the driver |
87033120 | Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars other vehicles, with compression ignition internal combustion piston engine (diesel or semi-diesel) : of a cylinder capacity not exceeding 1,500 cc : three-wheeled vehicles |
87033191 | Motor cars |
87033192 | Specialised transport vehicles such as ambulances, prison vans and the like |
87033199 | Other |
870332 | Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc |
87033210 | Vehicles principally designed for the transport of more than seven persons, including the driver |
87033220 | Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars other vehicles, with compression ignition internal combustion piston engine (diesel or semi-diesel) : of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc three-wheeled vehicles |
87033291 | Motor cars |
87033292 | Specialized transport vehicles such as ambulances, prison vans and the like |
87033299 | Other |
870333 | Of a cylinder capacity exceeding 2,500 cc |
See all 79 codes on the Chapter 87 page.
Which code goes on your GST invoice?
From 1 April 2021 (Notification 78/2020-Central Tax), a business with aggregate annual turnover up to ₹5 crore must show at least 4 digits of the HSN code on B2B tax invoices; above ₹5 crore, 6 digits on all tax invoices. Services use the SAC code in the same way.
Other common items
- Tractors
8701 - Motorcycles and scooters (Two-wheeler)
8711 - Bicycles
8712 - Motor vehicle parts (Spare parts)
8708 - Trucks and goods vehicles
8704 - Wheelchairs
8713 - Electricity
2716 - Hotel rooms (Lodge)
9963 - Restaurant services (Dhaba)
9963 - Salon and beauty services (Barber shop)
9997 - Renting of property
9972 - Insurance
9971
Codes and descriptions from the BooksOn HSN dataset (version 7, 2026-10-19), compiled from the Customs Tariff and CBIC notifications. Reference only; see Sources & disclaimer.
