Here you can find the GST rates, related to car purchase and services provided related to cars. Under the GST law, the car is termed a motor vehicle. Here are the various GST rate related to these types of services provided and the purchase of such motor vehicles.
The below list includes GST rates on passenger vehicles, personal vehicles on the basis of their engine CC. It also includes the gst rate on purchase of accessories and parts of car.
GST on Services Related to Car/Motor Vehicle
| HS Code | Type of Serivce | CGST Rate % |
| 9964 (Passenger transport services) | (ii) Transport of passengers, with or without accompanied belongings by- (a) air-conditioned contract carriage other than a motor cab; (b) air-conditioned stage carriage; (c) radio taxi. Explanation.- (a) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988); (b) “stage carriage” has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ; (c) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS). Note: No input tax credit is available. | 2.5 |
| 9964 (Passenger transport services) | (vi) Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. Note: Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), has not been taken. [Please refer to Explanation no. (iv)] | 2.5 |
| Heading 9964 (Passenger transport services) | (vi) Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. | 6% |
| 9966 (Rental services of transport vehicles) | (i)Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. | 2.5 |
| 9966 (Rental services of transport vehicles with operators) | (i)Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. | 6 |
| 9971 (Financial and related services) | (v) Leasing of motor vehicles purchased and leased prior to 1st July 2017; | 65 per cent. of the rate of central tax as applicable on supply of like goods involving transfer of title in goods. |
| 9973 (Leasing or rental services without operator) | (vi) Leasing of motor vehicles purchased and leased prior to 1st July 2017; | 65 per cent. Of the rate of central tax as applicable on supply of like goods involving transfer of title in goods. |
| 9966 or Heading 9973 | Services by way of giving on hire – (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (aa) to a local authority, an Electrically operated vehicle meant to carry more than twelve passengers; or Explanation.- For the purposes of this entry, “Electrically operated vehicle” means vehicle falling under Chapter 87 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) which is run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicle. (b) to a goods transport agency, a means of transportation of goods. (c) motor vehicle for transport of students, faculty, and staff, to a person providing services of transportation of students, faculty, and staff to an educational institution providing services by way of pre-school education and education up to higher secondary school or equivalent. | Nil |
GST on Purchase of Car/Motor Vehicle
| HS code | Type of Car/Motor Vehicle | CGST Rate % | Compensation Cess |
| 8703 | Cars for physically handicapped persons, subject to the following conditions: a) an officer not below the rank of Deputy Secretary to the Government of India in the Department of Heavy Industries certifies that the said goods are capable of being used by the physically handicapped persons; and b) the buyer of the car gives an affidavit that he shall not dispose of the car for a period of five years after its purchase. | ||
| 87 | Fuel Cell Motor Vehicles | 6 | |
| 8512 | Electrical lighting or signalling equipment (excluding articles of heading 8539), windscreen wipers, defrosters and demisters, of a kind used for cycles or motor vehicles | 9 | |
| 8703 | Following motor vehicles of length not exceeding 4000 mm, namely: – (a) Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven vehicles of engine capacity not exceeding 1200cc; and (b) Diesel driven vehicles of engine capacity not exceeding 1500 cc for persons with orthopedic physical disability, subject to the condition that an officer not below the rank of Deputy Secretary to the Government of India in the Department of Heavy Industries certifies that the said goods shall be used by the persons with orthopedic physical disability in accordance with the guidelines issued by the said Department | 9 | |
| 8704 | Refrigerated motor vehicles | 9 | |
| 8705 | 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) | 9 | |
| 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 [other than Cars for physically handicapped persons] | 14 | |
| 8704 | Motor vehicles for the transport of goods [other than Refrigerated motor vehicles] | 14 | |
| 8706 | Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705 | 14 | |
| 8707 | Bodies (including cabs), for the motor vehicles of headings 8701 to 8705 | 14 | |
| 8708 | Parts and accessories of the motor vehicles of headings 8701 to 8705 [other than specified parts of tractors] | 14 | |
| 8702 10, 8702 20, 8702 30, 8702 90 | Motor vehicles for the transport of not more than 13 persons, including the driver | 15 | |
| 87 | All old and used motor vehicles Explanation: Nothing contained in this entry shall apply if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT credit as defined in CENVAT Credit Rules, 2004, or the input tax credit of Value Added Tax or any other taxes paid on such vehicles. | ||
| 8702 or 8703 | Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles | ||
| 8703 10 10, 8703 80 | Electrically operated vehicles, including three wheeled electric motor vehicles. | ||
| 8703 40, 8703 60 | Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion; (a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | ||
| 8703 40, 8703 60 | Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion; (b) Three wheeled vehicles Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | ||
| 8703 40, 8703 60 | Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion; (c) Motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | ||
| 8703 40, 8703 60 | Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion; (d) Motor vehicles other than those mentioned at (a), (b) and (c) above. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | 15 | |
| 8704 50, 8703 70 | Following Vehicles, with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion; (a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | ||
| 8705 50, 8703 70 | Following Vehicles, with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion; (b) Three wheeled vehicles Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | ||
| 8706 50, 8703 70 | Following Vehicles, with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion; (c) Motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | ||
| 8707 50, 8703 70 | Following Vehicles, with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion; (d) Motor vehicles other than those mentioned at (a), (b) and (c) above. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | 15 | |
| 8703 | Hydrogen vehicles based on fuel cell tech and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | ||
| 8703 21 or 8703 22 | Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | 1 | |
| 8703 31 | Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. | 3 | |
| 8703 | Motor vehicles of engine capacity exceeding 1500 cc other than motor vehicles specified against entry at S. No 52B | 20 | |
| 8703 | Motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles. Explanation. – For the purposes of this entry, SUV includes a motor vehicle of length exceeding 4000 mm and having ground clearance of 170 mm. and above. | 22 | |
Note: If the particular column is blank, means GST rate is Nil. In the above list only CGST Rates are shown. Therefore, if the CGST rate is 9% then SGST rate is also 9% and IGST is 18%. Thus, total GST rate is 18%. This is applicable for the entire list.
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