The HSN code for cars is 8703. GST: 18% for small cars; 40% for other cars. Small cars are 18% (petrol, LPG or CNG up to 1200cc, or diesel up to 1500cc, and length up to 4,000 mm); larger cars and SUVs are 40%; compensation cess is nil.
HSN code and GST rate for cars
| Item | Cars |
|---|---|
| HSN heading | 8703 |
| Description | Motor cars and other motor vehicles designed mainly to carry persons |
| GST rate | 18% for small cars; 40% for other cars |
Small cars are 18% (petrol, LPG or CNG up to 1200cc, or diesel up to 1500cc, and length up to 4,000 mm); larger cars and SUVs are 40%; compensation cess is nil.
Example: GST on a ₹1,000 sale of cars
The rate depends on the value or the form of the goods (18% for small cars; 40% for other cars). Work out which slab each line falls in, then apply it; the GST calculator shows the CGST, SGST or IGST split for any rate.
How to show it on your invoice
Write the HSN code against each item line: at least 4 digits (8703) if your turnover in the previous year was up to ₹5 crore, 6 digits above that. Charge CGST and SGST when the buyer is in your state and IGST when the place of supply is another state. A GST invoice also needs your GSTIN, the buyer's GSTIN for B2B sales, the invoice number and date, the taxable value and the tax for each rate. Make one in a minute with the free GST invoice generator, or keep billing in FundRaksha Book, which fills the HSN and splits the tax for you.