Automobile

GST rate on Cars

Small cars are taxed at 18% GST under GST 2.0.

GST rate

18%

HSN code

8703

Intra-state split

9% CGST + 9% SGST

The GST rate on cars in India is 18% under GST 2.0, classified under HSN code 8703. For an intra-state sale this is split as 9% CGST and 9% SGST; for an inter-state sale it is charged as a single 18% IGST.

Note: Large/luxury cars (petrol >1200cc or diesel >1500cc, or length >4000mm) attract the 40% de-merit rate.

This is a commonly-applicable rate for quick reference under GST 2.0 (effective 22 September 2025). Rates and classifications can change with GST Council notifications — verify the exact rate on the official GST portal before issuing tax invoices.

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