Chapter 87GST Classification

Vehicles Other Than Railway or Tramway

Vehicles (Cars, Trucks, Bikes). High GST (28%) + Cess on many items. Electric Vehicles (5%).

Customs Tariff / HS aligned
Last reviewed: 22 Jan 2026
Total Codes381
Dominant RateCars 28% + Cess. EVs 5%. Bicycles 12%.
Key: Cars, Motorcycles, Trucks

ITC restrictions

ITC is BLOCKED under Sec 17(5) for passenger vehicles with seating <= 13 unless used for specified businesses (transport/training).

Compensation cess

Compensation Cess applies on motor vehicles (1% to 22%) based on engine capacity, length, and ground clearance.

Quick classification guide

1

4-digit heading: Pick the broad category (e.g. 8701).

2

Inclusions/exclusions: Confirm your product matches.

3

Rate check: Verify the latest notifications before filing.

Browse HSN codes in Chapter 87

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Analysis of Chapter 87

Vehicles (Cars, Trucks, Bikes). High GST (28%) + Cess on many items. Electric Vehicles (5%).

Included

  • Tractors
  • Passenger Cars
  • Auto Parts
  • Bicycles

Excluded

Expert insights

Parts of vehicles (Bumpers, Brakes) are 28%. The Vehicle itself is 28% + Cess.

  • Car (Ch 87) vs Crane (Ch 84): Crane is machinery.

Compliance checklist

  • 4-digit HSN: turnover-based rules apply (B2B often needs HSN).
  • 6-digit HSN: typically required beyond higher turnover thresholds.
  • Export/Import: use full code as per customs documents.

FAQs for Chapter 87

Is Electric Car 5%?

Yes, EVs are 5%.

Are Auto Parts 28%?

Most parts are 28%, some 18%.

Sources & accuracy

Not legal advice • Always verify before filing • Page URLs use your deployed site base.