HSN Code for Auto Parts, Tyres & Accessories – GST Rate Chart 2025
As a business owner in the automotive industry, are you struggling to find the correct GST rates and HSN codes for your products? Navigating the complexities of GST compliance can be challenging, but getting it right is crucial for your business’s health. This guide provides a clear and updated breakdown of the HSN code for auto parts, tyres, and accessories in India, helping you streamline your operations and avoid costly errors. Using the correct HSN code is not just a regulatory requirement; it ensures accurate tax calculation, seamless invoicing, and hassle-free Input Tax Credit (ITC) claims, which are the cornerstones of a compliant and efficient business. In the following sections, we will cover a detailed auto parts GST rate chart 2025, specific HSN codes for different components, and answer common questions to help you stay compliant and confident in your financial reporting.
Understanding HSN Codes and GST
What is an HSN Code?
The Harmonized System of Nomenclature, or HSN, is a globally recognized method for classifying goods. Developed by the World Customs Organization (WCO), it serves as a universal economic language and code for products. This systematic classification uses a six-digit code to categorize over 5,000 products, which is accepted worldwide. In the Indian GST regime, the HSN system has been adopted to ensure a uniform and standardized classification of goods, making taxation more systematic and globally aligned. The structure is hierarchical, organized into sections, chapters, headings, and sub-headings. For instance, a full 8-digit HSN code breaks down into the Chapter (first 2 digits), Heading (next 2 digits), Sub-heading (next 2 digits), and further sub-classifications (last 2 digits) for more specific identification. As per GST law, businesses are required to declare the HSN code for auto parts India on their sales invoices, with the number of digits required (2, 4, or 8) depending on their annual aggregate turnover.
Why Correct HSN and GST Classification Matters
Accurate classification of goods using the appropriate HSN code and corresponding GST rate is not just a procedural formality; it is a critical compliance requirement with significant financial implications. The government mandates that these codes be mentioned on all tax invoices and be correctly reported in GST returns like the GSTR-1 and GSTR-3B. Misclassification can lead to severe consequences, including the GST department issuing a show-cause notice, demanding the differential tax amount along with interest, and imposing heavy penalties. For example, classifying an item at 18% GST when it should be 28% can result in a demand for the 10% tax deficit on all past transactions. Furthermore, accurate HSN coding is vital for the entire supply chain. It ensures that your customers can correctly claim Input Tax Credit (ITC) on their purchases from you. A mismatch in HSN codes between a supplier’s invoice and a recipient’s records can trigger scrutiny from tax authorities and lead to the disallowance of ITC, causing business disputes and financial losses. You can learn more in our GST Input Tax Credit (ITC) Full Guide 2025 – Eligibility, Limits & Common Issues.
A Quick Overview of GST Components
In India, the Goods and Services Tax is a multi-stage, destination-based tax, and understanding its components is essential for correct invoicing and filing. The tax is levied on the supply of goods and services and is divided into three main types based on the nature of the transaction. For sales that happen within the same state (intra-state transactions), two taxes are charged:
- CGST (Central Goods and Services Tax): This is the portion of the tax collected by the Central Government.
- SGST (State Goods and Services Tax): This is the portion of the tax collected by the respective State Government.
For sales that occur between two different states (inter-state transactions), a single tax is levied:
- IGST (Integrated Goods and Services Tax): This tax is collected by the Central Government. The amount is later apportioned between the Centre and the destination state. For example, if a 28% GST item is sold within Maharashtra, the invoice will show 14% CGST and 14% SGST. If the same item is sold from Maharashtra to Karnataka, the invoice will show 28% IGST.
HSN Code for Auto Parts: GST Rate Chart 2025
Most parts and components used in motor vehicles are classified under Chapter 87 of the HSN system, which is broadly titled “Vehicles other than railway or tramway rolling stock, and parts and accessories thereof.” However, it’s a common misconception that all automotive items fall under this single chapter. Several critical components like engines, batteries, lighting equipment, and glass are categorized under different chapters based on their material and function. It is therefore crucial to identify the specific HSN for each product you deal in. The majority of these parts attract the highest GST slab of 28%, reflecting their classification as luxury or demerit goods. Below is a comprehensive auto parts GST rate chart 2025 to help you identify the correct GST rate for auto parts India and the corresponding auto parts HSN code 2025.
HSN Codes for Key Vehicle Components (Chapter 87 & Others)
| Part Description | HSN Code (8-digit) | GST Rate |
|---|---|---|
| Parts & accessories of motor vehicles (e.g., bumpers, brakes, gearboxes, wheels, suspension, clutches, steering) | 8708 | 28% |
| Engine pistons, piston rings, carburettors | 840991 | 28% |
| Electrical lighting or signalling equipment (headlamps, indicators, horns) | 851220 | 28% |
| Spark plugs and ignition coils | 851110 | 28% |
| Lead-acid batteries for starting piston engines | 85071000 | 28% |
| Seats for motor vehicles | 94012000 | 28% |
| Safety glass (toughened or laminated) for windscreens | 7007 | 28% |
HSN Code for Tyres India: GST Rate Chart
Tyres are one of the most essential and frequently replaced components of any vehicle, and their classification under GST is straightforward but important to get right. All rubber tyres, whether new, used, or retreaded, are classified under Chapter 40 of the HSN system, which covers “Rubber and articles thereof.” The HSN code for tyres India is further specified based on the type of vehicle it is intended for, such as cars, buses, lorries, or motorcycles. This detailed classification helps in precise identification and taxation. Similar to core auto parts, all types of vehicle tyres, including their inner tubes, fall under the 28% GST slab. This high tax rate applies uniformly across the category, simplifying compliance for businesses dealing exclusively in tyres. The GST rates for tyres accessories such as flaps and inner tubes also follow this classification.
GST Rates for New and Retreaded Tyres
| Tyre Description | HSN Code (8-digit) | GST Rate |
|---|---|---|
| New pneumatic tyres, of rubber (for cars, including station wagons & racing cars) | 401110 | 28% |
| New pneumatic tyres, of rubber (for buses or lorries) | 401120 | 28% |
| New pneumatic tyres, of rubber (for motorcycles) | 401140 | 28% |
| Retreaded or used pneumatic tyres of rubber | 40121100 | 28% |
| Inner tubes of rubber for motor cars, buses or lorries | 401310 | 28% |
HSN Code for Car Accessories: GST Rate Chart
Unlike core mechanical parts and tyres, car accessories are a diverse category of products that are spread across various HSN chapters, leading to a wider range of GST rates. This diversity makes correct classification particularly challenging for retailers and service centers. For instance, an entertainment item like a car audio system is classified under Chapter 85 (Electrical machinery and equipment), while a simple seat cover falls under Chapter 63 (Other made-up textile articles). The GST rates for these accessories vary from 12% to 28%, depending on the nature of the product. This accessories HSN code chart covers some of the most common items sold, providing clarity on the applicable HSN code for accessories India and helping businesses avoid the common pitfall of applying a uniform 28% rate to all car-related products.
GST on Popular Car Accessories
| Accessory Description | HSN Code (8-digit) | GST Rate |
|---|---|---|
| Car audio systems (radios, speakers) | 85272100 | 28% |
| GPS Navigation Apparatus | 852691 | 18% |
| Seat covers of textile materials | 630492 | 12% |
| Rubber floor mats | 40169990 | 18% |
| Car perfumes & air fresheners | 33074900 | 18% |
| Car polishing and cleaning preparations | 34053000 | 18% |
How to Find the Correct HSN Code for Your Products
Step-by-Step Guide Using the Official GST Portal
Finding the correct HSN code is a systematic process, and the government has provided a user-friendly tool on the official GST portal to assist taxpayers. This tool allows you to search for codes based on product descriptions, eliminating the need to manually sift through thousands of entries. Following these steps will help you determine the most accurate classification for your goods:
- Visit the official Goods and Services Tax portal: https://www.gst.gov.in/
- On the homepage, navigate to the top menu and click on Services > User Services > Search HSN Code.
- The portal gives you two options: search by HSN or by description. To find a code, select the “Description” option.
- Enter a detailed description of your product (e.g., “brake pads,” “car seat cover,” or “engine piston”) and solve the captcha.
- The portal will display a list of relevant HSN codes, along with their detailed chapter and heading descriptions. Review these carefully and choose the code that most precisely matches your product to ensure compliance. Our HSN & SAC Code Complete Guide – Choosing the Correct Code for GST offers further assistance.
When in Doubt, Consult an Expert
While the GST portal is an excellent resource, HSN classification can sometimes be ambiguous, especially for new or complex products. The descriptions may be open to interpretation, and an incorrect choice made today can lead to significant compliance issues, including tax demands and penalties, during an audit years down the line. It is a common business mistake to choose a code with a lower tax rate without proper justification, which is a red flag for tax authorities. If you are unsure about the correct HSN code for auto parts or any other product you sell, it is always wise to seek professional help. The experts at TaxRobo specialize in GST compliance and have in-depth knowledge of HSN classifications. We can provide you with accurate, well-researched guidance to keep your business safe and compliant.
Conclusion
Correctly identifying and applying the HSN code for auto parts, tyres, and accessories is a non-negotiable aspect of GST compliance for any business in the automotive sector in India. As we have detailed, while most core parts and tyres fall under the 28% GST slab, the rates for accessories can vary significantly, from 12% to 28%, depending on their specific classification. Being diligent about this process is fundamental to your business’s financial health. Using our detailed charts and the official GST portal as a guide will help you maintain accurate records, file correct tax returns, avoid interest and penalties, and ensure a smooth flow of Input Tax Credit for your customers.
Don’t let GST compliance become a roadblock to your business’s growth. Proper management of HSN codes and GST rates from the start saves you time, money, and stress in the long run. TaxRobo offers end-to-end solutions, from GST registration and filing to comprehensive accounting and expert advisory. Contact our TaxRobo GST Service today to streamline your financial operations and focus on what you do best—growing your business.
Frequently Asked Questions (FAQs)
1. What is the HSN code and GST rate for car engine oil?
Engine oils and other industrial lubricants are classified under HSN Chapter 27. Specifically, the HSN code for lubricating oil for petrol engines is 27101980. This product attracts a GST rate of 18%, which is lower than the rate for most mechanical auto parts.
2. Is the GST rate the same for all auto parts in India?
No, the GST rate is not the same for all auto parts. While a vast majority of core motor vehicle parts and components fall under HSN code 8708 and attract the 28% GST slab, there are exceptions. Items like lead-acid batteries (HSN 85071000) are also at 28%, but other products like certain accessories (e.g., textile seat covers at 12%), GPS units (18%), and engine oils (18%) have different rates. It is crucial to check the specific HSN code for each item to determine its exact GST rate.
3. What happens if I use the wrong HSN code on my GST invoice?
Using an incorrect HSN code can lead to several serious problems. Firstly, it results in incorrect tax payment—either underpayment, which can lead to demands for the tax deficit with interest and penalties, or overpayment, which requires a refund process. Secondly, it can cause the buyer’s Input Tax Credit (ITC) claim to be rejected during reconciliation, creating disputes. Thirdly, it is a compliance violation that can attract penalties under Section 125 of the CGST Act, which applies to general non-compliance and can be up to ₹25,000. You can find more information in our guide, Understanding the Penalties for GST Non-Compliance: A Detailed Overview.
4. How often do HSN codes and GST rates change?
The GST Council, which is the governing body for GST in India, meets periodically to review the economic landscape and industry feedback. Based on these meetings, they may revise GST rates, move items between tax slabs, or amend HSN classifications. While major changes are not frequent, they do happen. It is essential for businesses to stay updated with the latest notifications and circulars issued by the CBIC (Central Board of Indirect Taxes and Customs). Following a reliable financial news source or a professional blog like ours is a great way to stay informed.
5. Do second-hand or used auto parts have a different HSN code or GST rate?
The HSN code for a product remains the same whether it is new or second-hand. For example, a used gearbox is still classified under HSN 8708. The GST rate applicable to the product also remains the same. However, the GST valuation rules can be different for registered dealers of second-hand goods. Under the margin scheme (as per Rule 32(5) of the CGST Rules), such dealers can opt to pay GST only on the difference between their selling price and purchase price, provided no ITC was claimed on the purchase of the goods.
