Luxury & sin
GST rate on Luxury cars
Luxury cars (petrol >1200cc, diesel >1500cc, or length >4000mm) attract 40% GST.
GST rate
40%
HSN code
8703
Intra-state split
20% CGST + 20% SGST
The GST rate on luxury cars in India is 40% under GST 2.0, classified under HSN code 8703. For an intra-state sale this is split as 20% CGST and 20% SGST; for an inter-state sale it is charged as a single 40% IGST.
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.
Bill luxury cars with the right GST
PocketGST puts the correct HSN/SAC code and GST rate on every invoice line, splits CGST/SGST or IGST automatically, and works offline.
No signup on Free tier · Compare plans