GST rates and HSN code 8704 for Goods Motor Vehicles.

What is HSN Code 8704?

HSN code 8704 applies to all motor vehicles built or adapted for the transport of goods—including trucks, lorries, dumpers, refrigerated vans, and certain pickup or delivery vehicles.Every commercial vehicle used for hauling freight, construction materials, containers, or specialized cargo comes under this heading, regardless of its payload category or fuel type.​

Key types under 8704 hsn code:

• Trucks, lorries, delivery vehicles (light, medium, heavy)
• Dumpers, tippers, and off-highway construction vehicles
• Refrigerated vans and insulated goods carriers
• Three-wheeled and four-wheeled goods vehicles
• Tankers, container vans, special utility goods haulers

GST Rates & Exemptions for HSN Code 8704

The 8704 hsn code gst rate depends on the vehicle type and usage, with primary slabs at 5%, 18%, and 28%.

• 5% GST: Applies to select categories such as electric goods vehicles or notified refrigerated types
• 18% GST: Most standard trucks, lorries, goods carriers, and utility vans (diesel/petrol/electric)
• 28% GST: Some construction vehicles, dumpers, or high-end/luxury goods carriers

No compensation cess applies to goods vehicles under this heading.

Table Notes

• Always match the correct HSN sub-category (e.g. 870421, 870423, 870431) for engine type, tonnage, and vehicle configuration when invoicing.
• Tax rates are determined by the tariff and vehicle use—refer to current GST council notifications for any changes or exemptions.

GST Rates Applicable Under 8704

(Reference: ClearTax/CBIC GST schedules, as of 2025).​

What’s Included in HSN 8704 Goods Vehicle Category?

HSN code 8704 covers all:

• Diesel, petrol, CNG, LPG, hybrid, and electric goods vehicles
• Small, medium, and heavy trucks for goods carriage
• Dumpers, tippers, refrigerated, or insulated carriers
• Commercial vans modified for exclusive goods movement
• Tanks, containers, pickup vehicles

Non-passenger vans or vehicles legally classified as “goods transport” fall under this GST code.​

Key Exemptions Under GST for Goods Motor Vehicles

• 5% GST for electric goods vehicles and select notified refrigerated vehicles (87049012, as per latest government policy).
• No general exemption for diesel/petrol trucks, though government fleet purchases may get special concessions for public works or infrastructure projects (rare; see direct notification).
• Vehicles cleared as ambulances or with medical fitments often have a nil GST rate—these are covered under special sub-headings, not 8704 general category.

Input Tax Credit (ITC) Rules for Goods Vehicles

ITC on GST paid under hsn code 8704 can be claimed when:

• The vehicle is purchased for commercial transport, logistics, or goods transport for business operations.
• The invoice reflects 8704 or its valid sub-code and is GST-compliant.
• Goods vehicle is not acquired solely for personal or non-business use.

ITC Restrictions:

• No ITC for vehicles primarily used for personal transport, or exempt passenger use.
• Leasing/hiring restrictions: Only available for registered businesses and eligible taxable supplies.

Example:A logistics company buys a refrigerated truck (87042110) at 5% GST. Full ITC can be claimed if used exclusively for commercial goods movement.

GST on Goods Vehicle Billing: Practical Scenarios

1. Fleet purchase: A courier company buys 5 CNG goods vans (870431). Each is billed at 18% GST.
2. Refrigerated carrier: Dairy logistics acquires an electric, refrigerated van—billed under 87049012 at 5% GST and claims ITC for supply chain.
3. Heavy construction: A construction contractor buys a tipper truck (870410), GST rate determined per latest council notification (generally 18% or 28%).

Common Mistakes in GST Filing for Goods Vehicles

• Using HSN 8703 (passenger vehicles) for goods vans and trucks—instead of hsn code 8704.
• Not applying lower GST rate to notified electric or refrigerated vehicles under 8704.
• Claiming ITC for vehicles recorded as personal/company passenger use.
• Incorrect GST rates on specialized/modified vehicles (always check notifications).

Conclusion

The hsn code 8704 brings all goods transport vehicles—trucks, lorries, refrigerated, tippers—under a uniform GST structure.8704 hsn code gst rate is 18% in most cases, with 5% for some electric, refrigerated, or environmentally-promoted freight vehicles.Businesses should ensure correct HSN code, product description, and ITC documentation for GST-efficient operations in 2025.​

FAQs: HSN Code 8704 & Goods Vehicle GST

What is HSN code 8704?

Code 8704 covers all motor vehicles built for goods transport—trucks, lorries, refrigerated vans, and dumpers.

What is the GST rate for hsn code 8704?

18% for most vans and trucks; 5% for select electric/refrigerated models; 28% for some construction dumpers and high-end vehicles.

Can ITC be claimed on goods vehicle GST?

Yes, if vehicle is for business use in logistics or transport, and invoice is GST-compliant.

Are passenger pickup vans under 8704?

No; 8704 is only for vehicles registered as “goods carriage” with RTO—passenger mixed-use vans fall under a separate code.

Are electric and refrigerated trucks taxed lower?

Yes, many notified electric/refrigerated vehicles qualify for 5% GST under HSN 8704.