HSN Code and GST rate of tyres in India

Learn about the HSN code of tyres, categories, importance, and how it affects taxation and business practices.
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3 min
24 Aug 2024
The HSN code, or Harmonised System of Nomenclature, is a globally recognised system for classifying goods. Tyres are categorised under the HSN code starting with 4011, and each type of tyre has a specific code. The tyre HSN code is vital for determining the applicable GST rates, ensuring compliance with tax regulations, and simplifying the tax filing process. This standardised classification aids in global trade by providing a uniform system for identifying goods, reducing disputes and confusion in international transactions.

What is the HSN code for tyres?

Tyre categoryHSN code
Car Tyres4011 10
Truck and Bus Tyres4011 20
Motorcycle Tyres4011 40
Bicycle Tyres4011 50
Agricultural Tyres4011 61


Importance of the tyres HSN code

  • Tax compliance: The tyres HSN code is crucial for determining the correct GST rate applicable to different types of tyres. It ensures that businesses comply with tax regulations, avoiding potential legal issues.
  • Simplified tax filing: Using the correct HSN code streamlines the tax filing process, making it easier for businesses to file returns and claim input tax credits accurately.
  • International trade: The HSN code standardises tyre classification globally, facilitating smoother international trade by reducing ambiguities in product identification.
  • Avoidance of penalties: Misclassification of tyres under an incorrect HSN code can lead to penalties. Therefore, using the correct HSN code is essential for avoiding fines and ensuring smooth business operations.
  • Efficient inventory management: Businesses can manage their inventory more efficiently by categorising tyres under the correct HSN codes, ensuring accurate stock records and streamlined logistics. 

How to find the tyres HSN code?

  • Consultation with GST experts: Engaging with GST professionals or tax consultants is an effective way to determine the correct HSN code for different types of tyres.
  • Government resources: The official GST portal and related government websites provide detailed information on HSN codes for various products, including tyres.
  • GST invoices: Reviewing previous GST invoices can help in identifying the correct HSN code used for specific tyre categories, ensuring consistency in future filings.
  • Industry associations: Tyre manufacturers and dealers can consult industry associations, which often provide guidelines and updates on HSN codes relevant to their products.
  • Digital tools: Several online tools and mobile apps are available that help businesses find the correct HSN code by simply entering the product description.

Application of the tyres HSN code

The tyres HSN code plays a significant role in various aspects of business operations, especially in tax compliance and international trade. Businesses use the HSN code to classify tyres accurately, ensuring they apply the correct GST rate during transactions. This code also helps in filing GST returns, as it enables businesses to claim the appropriate input tax credits. Additionally, in international trade, the HSN code is essential for avoiding miscommunication between trading partners, as it provides a universally recognised system for identifying goods. Furthermore, tyre manufacturers, importers, and exporters use the HSN code to maintain consistency in their documentation, ensuring smooth customs clearance and reducing the risk of disputes.

Conclusion

Understanding and using the correct HSN code for tyres is crucial for businesses involved in tyre manufacturing, trading, or retailing. It ensures compliance with tax laws, simplifies the filing process, and facilitates international trade. Proper classification under the HSN code not only helps in avoiding penalties but also enhances operational efficiency. This knowledge aids in making informed decisions, contributing to the overall success and sustainability of the business.

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Frequently asked questions

What is the HSN code for tyres?
The HSN code for tyres is 4011. This code is used for categorising tyres under the Harmonised System of Nomenclature, which standardises the classification of goods for taxation purposes. Specific tyre types have sub-codes within the 4011 category, such as 4011 10 for car tyres and 4011 20 for truck and bus tyres. Using the correct HSN code is essential for determining the applicable GST rate and ensuring compliance with tax regulations in India.

What is the new HSN code for tyres?
The new HSN code for tyres, as updated under the GST regime, remains within the 4011 series. Specifically, car tyres are classified under HSN code 4011 10, while other types such as truck and bus tyres are under 4011 20. This classification helps in applying the correct GST rates and ensures compliance with tax regulations. Businesses dealing in tyres should use the updated HSN codes to streamline their tax filings and avoid penalties.

What is the HSN code for CEAT tyres?
The HSN code for CEAT tyres, like other tyre brands, falls under the HSN code 4011. This code applies to all types of rubber tyres, including those for cars, trucks, buses, motorcycles, and bicycles. The specific sub-category of the tyre, such as car or motorcycle tyres, determines the exact HSN code within this range. Using the correct HSN code is essential for tax compliance, accurate GST rates, and smooth business operations in India.

What is the HSN code for rubber tyres?
The HSN code for rubber tyres is 4011. This code falls under Chapter 40, which covers rubber and articles made of rubber. Specifically, 4011 classifies new pneumatic tyres of rubber used in vehicles, such as cars, trucks, motorcycles, and bicycles. It is essential for businesses involved in importing or exporting rubber tyres to use this code for accurate classification, ensuring compliance with Indian tax regulations and facilitating smooth customs procedures.

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