GST on Bikes: 100cc, 350cc, Electric Bikes GST Rate and HSN Code

The introduction of GST in India has simplified indirect taxation in the country. The uniform tax structure has benefitted every industry, including the automobile and two-wheeler sectors. The GST on a bike depends on its engine capacity. This article talks about the applicability, exemptions, tax rates, and ITC availability for GST on two-wheelers in India.

Applicability of GST on Bikes 

The GST on bikes in India is applied to the sale of new and used bikes or motorcycles. GST applies on both electric and non-electric two-wheelers. However, there are certain exemptions with regard to GST on two wheelers. 

Just like other goods and services, the transportation of bikes worth more than Rs. 50,000 require you to generate an e-way bill, including consumer not registered under GST. 

The place of supply for bikes or motorcycles is determined based on the destination of the goods.

The sale of bikes by registered persons requires the issue of a tax invoice.

GST Rate and HSN Code for Bikes 

Here are the GST rates and HSN codes for bikes-

ITC Availability on Bikes 

As per section 17(5)(a), you cannot claim ITC on bikes in India. However, there are a few exceptions. You can claim input tax credit in the following cases -

• If the bikes purchased are being used to transport passengers or as public transport
• If the bikes purchased are supplied further
• If the bike is used for training people to drive such vehicle. 

FAQs on GST on Bikes 

What is the GST rate on bikes? 

In India, the Goods and Services Tax (GST) rate on bikes or motorcycles depends on the engine capacity or the cubic capacity (CC) of the vehicle.

While GST on 350 cc bikes is 28%, bikes with an engine capacity of more than 350cc are charged GST rate at 28% + a cess of 3%, which amounts to 31%. 

Can we claim GST on a bike purchase?

You cannot claim GST on bikes purchased in India.

 However, ITC is available in the following cases -

• If the bike is supplied further
• If the bike is used for transportation of passengers
• If the bike is used for training purposes. 

What is the HSN code of a scooty?

The Harmonized System of Nomenclature (HSN) code of a scooty in India is 8711. The HSN code for two-wheelers 8711 includes all types of two-wheelers such as motorcycles, scooters, mopeds, and cycles fitted with an auxiliary motor.

What is the GST HSN code for bike spare parts?

The GST HSN code for bike spare parts in India is 8714.  It covers a wide range of spare parts, including engine parts, body parts, brakes, suspension, wheels and tyres.