Explore GST rates and HSN codes for tyres in India, covering 56th Council updates. Learn about ITC eligibility and the tax impact on the industry.
Vehicle tyres primarily use natural rubber as a raw material. The Goods and Services Tax (GST) rates applied to tyres differ considerably from other rubber products such as gloves or latex threads, and also vary among different types of tyres. This article examines the GST rates and Harmonized System of Nomenclature (HSN) codes for various tyre categories, incorporating recent updates from the 56th GST Council Meeting held in 2025.
Recent amendments to GST on tyres were announced by the 56th GST Council and notified by the CBIC, taking effect from September 22, 2025. For new pneumatic tyres, including those for bicycles, cycle-rickshaws, and three-wheeled powered cycle rickshaws, the GST rate decreased from 28% to 18%. Tractor tyres and tubes, encompassing rear tractor tyres and their respective tubes, saw a reduction from 18% to 5%. Additionally, the GST on tyre cord fabric, which includes high tenacity yarns of nylon, polyamides, polyesters, or viscose rayon, was lowered from 12% to 5%.
Pre-GST Era Taxation of Tyres
Prior to the implementation of GST, the taxation system for tyres involved various indirect taxes for manufacturers, dealers, and traders. Imported natural dry rubber faced a basic customs duty (BCD) of approximately 20%. After production, Original Equipment Manufacturers (OEMs) incurred Value Added Tax and Central Excise duties. Dealers and traders were subject to state-specific taxes like sales tax and octroi.
The introduction of GST consolidated these diverse taxes into a unified structure across India. For GST purposes, tyres are categorized further, each with a specific HSN code, including types such as:
- Four-wheeler car tyres
- Non-motorized bicycle tyres
- Two-wheeler motorized tyres
- Bus and commercial vehicle tyres
- Agricultural vehicle tyres
- Aviation tyres
- Retreaded, second-hand, used, or recycled tyres
Goods and Services Tax on Tyres
Under GST regulations, tyres are considered a supply and are subject to taxation under the normal charge mechanism. The specific GST rate applied to tyres varies according to their intended use.
GST Rates and HSN Codes for Tyres
Different tyre categories, as finished products, are assigned distinct HSN codes and GST rates:
| Category | HSN | Applicable GST Rate until 21st September 2025 | Applicable GST Rate from 22st September 2025 |
|---|---|---|---|
| Car (4-wheeler) tyres | 401110 | 28% | 28% |
| Non-motorised bicycle tyres | 401150 | 5% | 5% |
| Motorised 2-wheeler tyres | 401140 | 28% | 28% |
| Bus and commercial vehicle tyres | 401120 | 28% | 28% |
| Tyres used in agricultural-use vehicles | 401161 | 12% | 12% |
| Aviation tyres | 401190 | 18% | 18% |
| Retreaded second-hand or used or recycled tyres | 4012 | 18% | 18% |
| Tractor tyres and tubes | 401170 | 18% | 5% |
| New Pneumatic tyres of rubber material (excluding bicycles, cycle-rickshaws, tractor rear tyres, aircraft) | 401130 | 28% | 18% |
Input Tax Credit (ITC) for Tyres
Input Tax Credit (ITC) is a fundamental aspect of the GST framework. Taxpayers need to understand the rules for correctly claiming ITC to avoid penalties. A guide for claiming ITC when buying tyres is as follows:
- ITC is exclusively available to entities registered under GST.
- A primary condition for ITC eligibility is that the purchase must be for business use. For instance, a truck fleet owner can claim ITC on GST paid for buying and repairing truck tyres, but not for tyres purchased for a personal car.
- ITC cannot be claimed for tyre expenses related to private passenger vehicles.
- A cab operator can claim ITC on tyre-related costs if they directly charge and collect GST for their services. However, operators working through a cab aggregator (like Ola or Uber) generally cannot claim ITC, as the aggregator, not the individual operator, collects GST from passengers and pays a commission to the operator.
- Registered dealers and traders of both new and retreaded tyres are eligible to claim ITC, provided they collect GST from their customers.
GST on Tyre-Related Services
Retreaded tyres are subject to a uniform GST rate of 18%. If the overall value of a tyre includes a service charge for retreading, then this service component also incurs an 18% GST. For registered businesses providing tyre repair and maintenance services, the applicable HSN code is 9987, and these services are taxed at an 18% GST rate.
Impact of GST on the Tyre Sector
For Consumers: The implementation of a unified GST rate nationwide has simplified the understanding of the tax element within tyre prices.
For Manufacturers: The singular tax structure introduced by GST has streamlined accounting procedures. Manufacturers now benefit from quicker processing of tax credits. Previously, certain states provided production-linked tax incentives, which led to variations in manufacturing costs. With GST, manufacturers can establish production facilities anywhere in India and face consistent tax rates.
For Dealers and Traders: These entities are now able to claim Input Tax Credit on the GST paid for their inventory purchases.
Read more:
GST on Electric Vehicles (EVs)
GST on Motor Cars and Light Motor Vehicles
