The GST rate on car is 18%, under HSN code 8703 (motor cars (passenger vehicles)). Here is the full breakdown, a worked example, and related rates in Automotive.
GST rate breakdown for car
GST rate: 18%
Intra-state: 9% CGST + 9% SGST
Inter-state: 18% IGST
HSN code on the invoice: 8703
Also covers: passenger car, sedan, suv, hatchback
Rates reflect the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Confirm the current rate on the official GST portal before invoicing.
Worked example: GST on car
Taxable value: ₹10,000
GST (18%): ₹1,800
Within state: ₹900 CGST + ₹900 SGST
To another state: ₹1,800 IGST
Invoice total: ₹11,800
FAQs about GST on car
What is the GST rate on car?
The GST rate on car is 18%. Intra-state it is 9% CGST + 9% SGST; inter-state it is 18% IGST. Car falls under HSN code 8703.
What is the HSN code for car?
Car falls under HSN code 8703, which covers motor cars (passenger vehicles). Show this code on every GST tax invoice line for car.