Bicycles - GST Rates & HSN Code 8712

India is one of the largest producers of bicycles in the world, and it's a popular mode of transportation for millions of people in the country. As a small or medium business owner, it's important to understand the GST rates and HSN code for bicycles to ensure compliance and avoid penalties.

GST Rates for Bicycles

Under GST, bicycles are classified under the HSN code 8712, which covers bicycles and other cycles (including delivery tricycles), not motorized. The GST rates for bicycles are as follows:

1. For bicycles without an engine, the GST rate is 12%

2. For bicycles with an engine, the GST rate is 28%

It's important to note that bicycles with an engine are classified as mopeds under GST and are subject to the higher GST rate of 28%.

HSN Code for Bicycles

As mentioned earlier, the HSN code for bicycles is 8712. However, it's important to note that there are different sub-categories within this code. These sub-categories are:

1. 8712.00 - Bicycles and other cycles not motorized

2. 8712.10 - Bicycles and other cycles not motorized, with ball bearings

3. 8712.20 - Bicycles and other cycles not motorized, without ball bearings

It's crucial to ensure that you use the correct HSN code when filing your GST returns to avoid penalties and other legal issues.

Conclusion

As an Indian small or medium business owner or startup founder, understanding the GST rates and HSN code for bicycles is crucial to ensure compliance and avoid penalties. It's important to note that the GST rates and HSN codes may change from time to time, so it's essential to keep yourself updated with the latest information.

If you have any questions regarding the GST rates and HSN code for bicycles or any other GST-related issues, it's best to consult with a tax professional to ensure that you're following all the rules and regulations.