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Car attracts 28% GST under HSN code 8703. Calculate the exact tax below.
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Car is classified under HSN code 8703 for GST purposes. The Harmonized System of Nomenclature (HSN) code is used to classify goods systematically. This code must be mentioned on GST invoices when billing for car.
Cars attract 28% GST plus compensation cess ranging from 1% to 22% depending on the type, engine size, and fuel. Small cars (petrol <1200cc) attract 1% cess, mid-size 3%, large SUVs up to 22%.
Input tax credit (ITC) is not available on car under the current GST framework. The 28% GST is charged without the option to claim credit on inputs. This was a deliberate policy decision to simplify compliance at the reduced rate.
Here are example calculations showing GST on car at 28% for common price points:
| Base Price | GST (28%) | CGST (14%) | SGST (14%) | Total |
|---|---|---|---|---|
| ₹5,00,000 | ₹1,40,000 | ₹70,000 | ₹70,000 | ₹6,40,000 |
| ₹10,00,000 | ₹2,80,000 | ₹1,40,000 | ₹1,40,000 | ₹12,80,000 |
| ₹15,00,000 | ₹4,20,000 | ₹2,10,000 | ₹2,10,000 | ₹19,20,000 |
| ₹25,00,000 | ₹7,00,000 | ₹3,50,000 | ₹3,50,000 | ₹32,00,000 |
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Other items at 28% GST:
Car attracts 28% GST in India under HSN code 8703. For intra-state sales, this is split into 14% CGST and 14% SGST. For inter-state sales, 28% IGST applies.
The HSN code for Car is 8703. HSN (Harmonized System of Nomenclature) codes are used to classify goods under GST. This code should be mentioned on all GST invoices.
To add 28% GST on car: GST Amount = Base Price × 28/100. Total = Base Price + GST Amount. For example, on ₹10,00,000: GST = ₹2,80,000, Total = ₹12,80,000.
No, input tax credit is not available on car under the current GST structure. The 28% GST rate applies without ITC benefit.
Cars attract 28% GST plus compensation cess ranging from 1% to 22% depending on the type, engine size, and fuel. Small cars (petrol <1200cc) attract 1% cess, mid-size 3%, large SUVs up to 22%.