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Like most other goods, GST is also levied on tyres, which are an essential component of the mobility and automobile sector. Read on to know more about the applicable rate of GST on tyres and how it is calculated.
The sale of tyres, whether of bicycles, bikes, cars or buses, is taxed under the Goods and Services Tax (GST) regime. The GST Council of India decides on what tax rates must be applicable to a particular product, including tyres.
The GST rate on tyres belongs to different tax slabs, so GST rates on these products range from 5% to 28%. Have a look at the following table to check the applicable rates of GST on tyre purchase belonging to different categories:
Description |
GST Rate |
|---|---|
Pneumatic tyres or inner tyre tubes used in bicycles, rickshaws and three-wheeler rickshaws |
5% |
Tubes for tyres |
18% |
New pneumatic (air/gas) rubber tyres used in motor cars, buses, motor cycles, lorries, etc |
28% |
Retreaded Tyres |
18% |
Note: The GST Council reduced the GST rate on retreaded or used tyres to 18% from the earlier rate of 28% in 2019.
Before this new indirect tax regime was enacted, a number of central and state government taxes were levied on the purchase of tyres.
For instance, many states charged a Value Added Tax or VAT of 12.5% on rubber tyres. Because of multiple taxes, the total taxable amount was as high as 31% of the product’s cost. Moreover, the taxation on tyre tubes amounted to 20%.
However, since the implementation of the GST, these tax rates for tyres have come down. The applicable GST rate on the inner tyre tubes used in bicycles and rickshaws is 5%.
On the other hand, the tyre GST rate for motorcycles, cars, etc. and retreaded tyres are 28% and 18%, respectively. Moreover, tubes for tyres attract a GST rate of 18%. Check the following table to see how GST has impacted costs of pneumatic tyres for a car:
Description |
Pre-GST Rate |
Post-GST Rate |
|---|---|---|
Base Price |
₹5,000 |
₹5,000 |
VAT@12.5% |
₹625 |
- |
Other Taxes @18.5% |
₹925 |
- |
GST @28% |
- |
₹1,400 |
Final Price |
₹6,550 |
₹6,400 |
So, the GST has reduced the total amount you have to pay when you buy a pneumatic tyre. Moreover, it has simplified and streamlined taxation and improved transparency.
The Goods and Services Tax (GST) regime in India has gone through significant changes since its rollout, aiming to simplify the indirect tax structure and bring uniformity across states. A recent and notable amendment took place effective 22nd September, 2025, concerning the GST rates and applicable rules on tyres. This revision was enacted following recommendations and decisions of the 56th GST Council meeting and introduces major rate rationalisations and structural reforms in the taxation of various types of tyres used across different vehicle categories. These amendments are especially impactful for manufacturers, dealers, commercial fleet operators, agricultural vehicle owners, as well as general consumers.
Prior to these amendments, tyres were subjected to varying GST rates of 5%, 12%, 18%, and 28% depending on the type of tyre and its intended use, creating some level of complexity within the industry. The revised GST framework streamlines these rates primarily into 18% and 5% slabs, abolishing the earlier 12% and 28% classifications for most tyres, reflecting the government’s objective to reduce tax burdens, simplify compliance, and enable ease of doing business.
The most significant aspect of the amendment concerns the lowering of GST rates on various tyre categories, leading to widespread cost benefits and pricing corrections. Here is a detailed breakdown:
These tax changes are accompanied by the lowering of the GST rate on related substances such as glycerol used in the tyre manufacturing process (from 18% to 5%), supporting domestic production of raw rubber and reducing manufacturing costs.
The amendment also clearly demarcates and aligns GST rates with updated Harmonised System of Nomenclature (HSN) codes for different tyre types. This demarcation reduces ambiguities and helps businesses correctly categorise their goods for taxation purposes. The main categories and corresponding GST rates post-amendment are:
Tyre Type |
HSN Code |
GST Rate |
|---|---|---|
Car (4-wheeler) tyres |
401110 |
18% |
Motorised 2-wheeler tyres |
401140 |
18% |
Bicycle tyres |
401150 |
5% |
Bus and commercial vehicle tyres |
401120 |
18% |
Agricultural-use vehicle tyres |
401161 |
5% |
Aviation tyres |
401190 |
18% |
Retreaded/second-hand tyres |
4012 |
18% |
Tyre tubes and flaps |
4012/4013 |
18% |
Disclaimer: The categorisation and HSN code classifications presented herein are based on the revised GST rates and classifications announced by the 56th GST Council meeting, effective from September 22, 2025. The information is intended for general guidance and should not be construed as legal or professional advice. It is advised to consult the official notifications and circulars issued by the Central Board of Indirect Taxes and Customs (CBIC) and the Ministry of Finance for the most authoritative and up-to-date details.
The industry welcomed the GST rationalisation as a positive move towards simplifying the tax burden and fostering growth. Major tyre manufacturers, including CEAT and Apollo Tyres, promptly announced price reductions to pass the GST benefits to their consumers. This action indicates the amendments’ direct effect on price competitiveness, market dynamics, and consumer affordability.
From a consumer standpoint, the rate adjustments mean reduced out-of-pocket expenses for replacement tyres on passenger vehicles, two-wheelers, and agricultural machines. It will encourage timely replacement, which is often neglected due to high costs, thus improving safety on Indian roads. Commercial vehicle operators and transport companies also stand to benefit from lower operating costs, potentially influencing freight rates and logistics efficiency positively.
The amendments emphasise the proper claiming of Input Tax Credit for GST paid on tyres, crucial for manufacturers, dealers, fleet operators, and service providers. Registered entities dealing in tyres can claim ITC on purchases, buffering overall tax outflow and preventing cascading taxes in their supply chains. Precise adherence to classification using updated HSN codes is critical for compliance and audit purposes.
In addition to the revised GST rates on tyres, several other significant changes have been implemented. Here’s a closer look at them:
GST on retreaded tyres remains at 18%, reflecting the value addition involved in retreading services.
The GST rate on rubber scrap from discarded tyres is maintained at 5% (HSN 4017), while hard rubber scraps attract 18% GST (HSN 4004).
Tyre repair and maintenance services attract GST at 18%, assigned under HSN 9987.
These amendments fit within the broader agenda of GST rationalisation aimed at removing multiple tax slabs, simplifying compliance, and fostering ease of business. By standardising tax rates on tyres, the government seeks to bring down input costs for manufacturers and end consumers, increase tax base transparency, and reduce tax evasion risks inherent in multi-rate systems. The adjustments also intend to boost safer vehicular practices by lowering tyre replacement costs across all vehicle categories.
Moreover, the focused support for agricultural tyres aligns with the government’s emphasis on supporting rural growth and farm mechanisation, vital for India’s large agrarian economy.
Now that you know about the applicable tyre GST rates, let us see how you can calculate GST on tyres.
As per the GST rules, a 28% tax is charged on pneumatic tyres for cars, bikes, etc. So, the GST that you will have to pay when purchasing such a tyre would be 28% of the base price.
In case you are purchasing a tyre for a bicycle or rickshaw, the applicable GST rate is 5%. On the other hand, the tax rate for tyres for agricultural vehicles, like tractors, is 18%. The tubes for all tyres are taxed at a similar rate.
As per the GST Rules, if suppliers or agents transport any consignment of tyres worth more than ₹50,000, they are required to generate an e-way bill. The e-way bill must contain these two parts. Part A must provide the following details:
Recipient GSTIN
Delivery destination
Invoice number along with the date
HSN code of the tyres
The value of the consignment
Transport document number
Reasons for transportation
On the other hand, Part B must have the following details:
Vehicle number
Transporter ID
Section 17(5)(ab) of the CGST Act disallowed Input Tax Credit (ITC) on various items, including motor vehicles. So, you can not claim ITC on tyres. However, since the purchase of trucks does not come under clause (a) or (aa) of this section, you can avail ITC on truck tyres.
The automobile sector in India is slowly recovering from the damage done by the 2019 pandemic. The Government of India is also providing solutions to revive the industry. As such, experts are hopeful that the GST council revisits the GST on tyres to boost the industry further
The GST for all pneumatic tyres is 28% which includes tubeless tyres.
Yes, the GST on car tyres is 28%, which you are allowed to claim.
The GST for retreaded tyres is 18%. In 2019, the GST Council decided to reduce it from 28% to the current rate.
The GST for tyre purchase in India ranges between 5%-28%. For bicycle and rickshaw tyres, it is 5% and 18% for tractor tyres. Moreover, GST on bike tyres and car tyres are pegged at 28%.
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