Motorcycle HSN Code

Understanding the Motorcycle HSN Code

Motorcycles are more than just a mode of transport; they represent freedom, passion, and a significant segment of the automotive industry. For manufacturers, dealers, and even enthusiasts involved in the trade of motorcycles in India, understanding the correct HSN (Harmonized System of Nomenclature) code is absolutely critical for accurate GST (Goods and Services Tax) compliance. The “Motorcycle HSN Code” is specifically designed to categorize these two-wheeled (and sometimes three-wheeled) marvels based on their engine capacity and propulsion type.

Motorcycles and Their Kin: Chapter 87’s Domain

All motorcycles, including mopeds and cycles fitted with an auxiliary motor, whether with or without side-cars, fall under Chapter 87 of the HSN system. This chapter broadly covers “Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof.”

The core HSN heading for motorcycles is 8711: “Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars.”

Classifying by Engine Capacity and Propulsion

Within HSN 8711, the classification becomes more granular, primarily based on the engine’s cylinder capacity (for internal combustion engines) or the type of propulsion (for electric vehicles).

Internal Combustion Engine Motorcycles

For motorcycles powered by a reciprocating internal combustion piston engine, the HSN sub-codes are determined by their engine capacity:

• Up to 50 cc:
  • 87111020: Motorised Cycles
  • 87111090: Other These typically attract a 28% GST rate with Nil/3% cess, effective from August 1, 2019 (original effective date July 1, 2017).
• Exceeding 50 cc but Not Exceeding 250 cc:
  • 87112011 (Scooters, of cylinder capacity not exceeding 75cc)
  • 87112019 (Scooters, other)
  • 87112021 (Motor Cycles, of cylinder capacity not exceeding 75cc)
  • 87112029 (Motor Cycles, other)
  • 87112031 (Mopeds, of cylinder capacity not exceeding 75cc)
  • 87112039 (Mopeds, other)
  • 87112091 (Other, of cylinder capacity not exceeding 75cc)
  • 87112099 (Other, other) All these also fall under the 28% GST rate with Nil/3% cess, effective from August 1, 2019 (original effective date July 1, 2017).
• Exceeding 250 cc but Not Exceeding 500 cc:
  • 87113020: Motor-Cycles
  • 87113090: Other These too are subject to a 28% GST rate with Nil/3% cess, effective from August 1, 2019 (original effective date July 1, 2017).
• Exceeding 500 cc but Not Exceeding 800 cc:
  • 87114010: Motor-Cycles
  • 87114090: Other These have a 28% GST rate with Nil/3% cess, effective from August 1, 2019 (original effective date July 1, 2017).
• Exceeding 800 cc:
  • 87115000 These also have a 28% GST rate with Nil/3% cess, effective from August 1, 2019 (original effective date July 1, 2017).

Electrically Operated Motorcycles

For the increasingly popular electrically operated motorcycles, the HSN code falls under:

• 87119091: Electrically Operated While the provided data shows this also at 28% with Nil/3% cess, it is crucial to note that current government policy, to promote electric vehicles, has significantly reduced the GST on electric two-wheelers to 5%. Always refer to the latest GST notifications.

Side-Cars and Other Accessories

Side-cars for motorcycles also have their own classification:

• 87119010: Side-Cars These are subject to a 28% GST rate with Nil/3% cess.

For general “Parts and Accessories Of Motorcycles (Including Mopeds),” the HSN code is 871410, which typically attracts an 18% GST rate.

The Importance of Precise HSN Classification and GST Rates

Correct HSN classification is not merely an administrative task; it directly impacts:

• GST Calculation: Ensures accurate tax collection and remittance.
• Pricing: Affects the final price of the motorcycle for consumers.
• Import/Export Compliance: Facilitates smooth customs clearance and avoids penalties.
• Industry Policy: Lower GST rates for electric vehicles aim to boost their adoption and support green mobility initiatives.

Always consult the latest official GST notifications and circulars issued by the Indian government (CBIC) and consider seeking professional tax advice to ensure complete compliance.