GST on Diesel Vehicles
When it comes to understanding the complexities of GST on motor vehicles, GST on diesel cars holds a particular place of interest. In this article, we look into the GST applicability on diesel vehicles, the HSN code and GST rate on diesel cars, and more.
Applicability Of GST on Diesel Vehicles Of Different Types
In India, GST is levied on motor vehicles, irrespective of the type of fuel used. In that regard, GST applies to all diesel vehicles, such as diesel cars, buses and trucks. The applicability of GST on diesel vehicles depends on various factors based on the vehicle's classification and purpose.
In addition to GST, a compensation cess is applicable on certain types of motor vehicles depending on their length, engine capacity and ground clearance.
HSN Code and GST Rate on Diesel Vehicles
| HSN Code | Description | GST Rate |
| 8408 | Compression-ignition internal combustion piston engines (diesel or semi-diesel engines) | 28% |
| 8409 | Diesel engine parts | 28% |
| 8413 | Fuel, lubricating or cooling medium pumps for internal combustion piston engines | 28% |
| 8702 | Motor vehicles designed to transport 10 or more individuals | 28% |
| 8703 | Motor cars and vehicles primarily intended to transport people (excluding those under heading 8702), such as station wagons and racing cars, but not including cars designed for individuals with physical disabilities | 28% |
| 8703 | Diesel vehicles with an engine capacity of up to 1500 cc, intended for use by individuals with orthopedic disabilities (subject to certification from a Deputy Secretary or higher in the Department of Heavy Industries, Government of India) | 18% |
| 8704 | Goods transport vehicles | 28% |
Is ITC Available on GST on Diesel Vehicles?
Under the GST law, input tax credit (ITC) on vehicles purchased for passenger transportation, such as-
- Four-wheeler motor cars
- Three-wheelers or auto rickshaws
- Two-wheeler motorbikes or cycles
- Buses or Tempo Travellers (TT) that have up to 13 seats, including the driver
- Any other vehicle used on the road
Except where the purchase of the passenger transportation vehicle is for the purpose of conducting the following businesses-
- Passenger transportation services, cabs, or bus rental or lease service
- Driving school
- Automobile retail shops, showrooms, or manufacturing establishments
FAQs
How is the GST calculated on diesel cars?
The GST on diesel cars is calculated based on the applicable GST rate, which is currently 28% for diesel engine vehicles, with a few exceptions. The final price would include this tax and any additional cess or state levies.
Are diesel fuel and diesel engines taxed at the same rate?
No, diesel fuel and diesel engines are not taxed at the same rate. Diesel fuel is outside the purview of GST, whereas GST is levied at 28% on diesel engines.
Related Articles:
GST Impact on Car Prices & Other Automobiles in India
GST on Motor Cars and Light Motor Vehicles
GST on SUV Cars
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