GST on Commercial Vehicles, GST registration, GST Returns, Ebizfiling

Everything you need to know about GST on Commercial Vehicles

GST on Commercial Vehicles.

Commercial vehicles such as those designed for carrying passengers, goods or for agricultural use typically feature a GST on car in India and other vehicles are ranging from 12% to 28%. Before going through the GST (Goods and Services Tax) on Commercial Vehicles, Let’s have a quick look on what is Goods and Service Tax.


What is Goods and Service Tax?

The Goods and Services Tax (GST) is a tax imposed on goods and services. It is an indirect tax that has mostly superseded many other indirect taxes in India, such as VAT, services tax, and excise duty. The Goods and Service Tax Act was passed by Parliament on March 29, 2017, and into effect on July 1, 2017. In India, the Goods and Services Tax (GST) is a multi-stage, destination-based tax that is levied on every value addition. GST (Goods and Services Tax) is a single domestic indirect tax law that applies to the entire country.

12% GST on cars and other vehicles

  • Tractors except road tractors for semi-trailers with engine capacity exceeding 1800cc
  • Self-loading/self-unloading trailers for agricultural purposes

18% GST on cars in India and other vehicles:

  • Buses for use as public transport that exclusively operate on Bio-fuels
  • Refrigerated motor vehicles
  • Special purpose vehicles such as crane Lorries, breakdown Lorries, concrete-mixer Lorries, etc.
  • Self-propelled work trucks without handling/lifting equipment are commonly used for the transport of goods over short distances at airports, docks, factories, warehouses, etc.
  • Various tractors parts include but are not limited to gearbox assembly, axles, brake assembly, bumpers, clutch assembly, radiator assembly, etc.

28% GST on cars in India and other vehicles

  • Road tractors for semi-trailers with engine capacity in excess of 1800cc
  • Motor vehicles for transport of 10 people or more (excluding bio-fuel powered public transport buses)
  • Motor vehicle for transport of goods (excluding refrigerated motor vehicles)
  • Various motor vehicle parts and accessories (excluding various tractor parts)

GST compensation cess of 15% is also applicable over and above applicable GST to commercial vehicles capable of transporting up to 13 people including the driver. This compensation cess is in addition to the GST applicable to the specific vehicle type.

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