Chassis Fitted With Engines or CFE is an important category under automobiles that is closely monitored by the government of India. The GST rates and HSN code for this category is 28% and 8706 respectively. This means that businesses that deal with CFEs need to be aware of these rates and code to ensure proper compliance with the law.
Before we delve into the details of GST rates and HSN code for CFEs, let us first understand what this category entails. CFE refers to an automobile chassis that is fitted with an engine. This category includes various types of automobiles such as trucks, buses, and other heavy vehicles.
As mentioned earlier, the GST rate for CFEs is 28%. This is the same rate that is applicable to all motor vehicles. The 28% rate is divided into two parts, namely – 14% and 14%. The 14% rate is meant for the Central GST or CGST and the other 14% is meant for the State GST or SGST. This rate is applicable for all types of CFEs irrespective of their engine capacity or any other feature.
The HSN code for CFEs is 8706. This code is specifically meant for vehicles that have their own propulsion system. This means that it applies to vehicles that are powered by an engine or a motor. The code is further divided into subcategories based on the type of vehicle. For instance, if the CFE is a truck, then the HSN code would be 8706 00 10. Similarly, for buses, the HSN code will be 8706 00 20.
Being aware of GST rates and HSN code for CFEs is crucial for businesses that deal with these automobiles. Not only does it help in ensuring proper compliance with the law, but it also helps in avoiding any legal issues that may arise otherwise. Additionally, businesses can also benefit from the input tax credit facility that is offered under GST. This facility allows businesses to claim a credit for the GST paid on inputs used for the manufacture or supply of goods and services.
Chassis Fitted With Engines or CFE is an important category under automobiles that is subject to GST in India. The GST rate for this category is 28% and the HSN code is 8706. Being aware of these rates and codes is crucial for businesses that deal with CFEs to ensure proper compliance with the law and to avoid any legal issues that may arise otherwise.
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