GST on Tyres in India

Working out the GST on tyres

Tyres are taxed at a flat 18% for car, bike and truck fitments, so the arithmetic is straightforward. Multiply the taxable value by 18 percent to get the GST, then add it to the base price for the total.

• For an intra-state sale, the 18% splits into 9% CGST and 9% SGST.
• For an inter-state sale, a single 18% IGST applies instead.
• The calculator on this page is pre-set to the 18% rate and handles both cases.

A worked example

Suppose a tyre has a taxable value of ₹5,000 before tax. Applying 18% GST works out as follows.

Tyres after the rate cut

New pneumatic tyres moved from 28% to 18% on 22 September 2025 as part of the GST 2.0 rationalisation, cutting a routine cost for every vehicle owner. The rate applies across vehicle types.

Replacing a set of four

The saving is meaningful on a full replacement. Four car tyres at ₹5,000 each come to ₹20,000, on which GST is now ₹3,600 instead of ₹5,600 at the old 28% rate, saving ₹2,000. Add the parallel cut on two-wheeler parts under HSN 8714 and routine vehicle maintenance costs noticeably less than it did before the reform.

Input tax credit on tyres is not blocked

This is the useful bit that surprises people. Section 17(5) blocks ITC on the vehicle itself for most businesses, but tyres are goods bought for the business and the block does not extend to them in the same way. A logistics company or fleet operator running commercial vehicles can generally claim the 18% on replacement tyres against its output liability, since those vehicles are used to make taxable supplies. That makes tyres one of the few vehicle-related costs where the credit chain works. Where the vehicle itself is blocked under 17(5), the position on its running costs is more nuanced and worth confirming with your accountant for your specific use.

Retreading and buying online

Retreading is treated as a service rather than a sale of goods and attracts 18% under SAC 9988. A retreader can claim ITC on the rubber and materials used. Buying tyres online carries the same 18%, appearing as IGST on an inter-state order. Fitting and balancing charged separately by a workshop is a service at 18%; bundled into the tyre price it follows the goods rate, which is the same number either way.

Tyres that are not at 18%

The 18% entry is written for new pneumatic tyres, and the GST 2.0 rate list carves out a few categories that follow their own treatment: cycle tyres, aircraft tyres and tractor rear tyres are listed separately rather than under the general entry. Agricultural tyres in particular have historically carried concessional treatment as part of the broader policy of keeping farm inputs cheap. If you are billing for anything other than an ordinary road-vehicle tyre, confirm the specific entry rather than defaulting to 18%.

Fleet operators and working capital

For a transport business tyres are one of the largest recurring consumables after fuel, and the contrast is instructive. Fuel sits outside GST entirely, so the tax on it is a permanent sunk cost with no credit available. Tyres are inside GST at 18% and the credit generally flows for commercial vehicles making taxable supplies. The rate cut from 28% therefore does two things at once: it lowers the cash outlay and it reduces the amount of credit that has to be carried and reconciled.

Buying, e-way bills and documentation

A consignment of tyres above ₹50,000 needs an e-way bill for inter-state movement, and for intra-state movement in most states. The e-way bill must carry HSN 4011 and match the invoice, since tyres move in bulk and mismatches between the e-way bill, the invoice and GSTR-1 are a common trigger for scrutiny. For an ITC claim, keep the tax invoice rather than a workshop receipt, and make sure it carries your GSTIN and the correct HSN.

Frequently asked questions