GST Rate on Cars: 28%

HSN 870321 · 14% CGST + 14% SGST intra-state, or 28% IGST interstate.

Motor cars attract 28% GST plus compensation cess that varies by engine size, length, and fuel type — small petrol cars add 1% cess while large SUVs add up to 22%, taking the effective rate as high as 50%. Electric vehicles are the big exception at just 5%.

Worked example at 28%

Taxable value: ₹10,000
CGST (14%): ₹1,400.00
SGST (14%): ₹1,400.00
Invoice total: ₹12,800.00

Interstate, the same sale shows a single IGST line of ₹2,800.00. Try your own numbers in the GST calculator.

Classification

Cars is classified under HSN 870321 — see the full classification page for the official description, parent and related codes, and digit-length rules. Rates follow GST Council notifications and can change; the rate shown here is the one typically associated with this classification.

Also at 28% GST

Air Conditioners HSN 841510 Batteries HSN 8507 Car Spare Parts HSN 8708 Cement HSN 252329 Soft Drinks HSN 2202 Two-Wheelers HSN 8711 Tyres HSN 401110

Frequently asked questions

The 28% GST is uniform, but compensation cess is graded: ~1% on small petrol cars, 3% on small diesels, and up to 22% on large SUVs — the cess, not the GST, creates the spread.

For a sale within one state, the 28% splits equally into 14% CGST and 14% SGST. For an interstate sale it is charged as a single 28% IGST — the total tax is the same either way.

HSN code 870321. The code appears on every invoice line and flows into the GSTR-1 summary and e-way bills.

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