Railway Goods Vans - GST Rates & HSN Code 8606

India has a vast railway network that operates throughout the country, transporting goods and passengers from one place to another. The Indian Railways is the fourth-largest railway network in the world, covering a distance of over 68,000 km. With such a vast network, the railways have played a significant role in the economic development of the country.

One of the essential components of the railway network is the railway goods vans. These vans are used to transport various goods such as raw materials, finished products, and other items from one place to another. If you are a small and medium business owner or a startup founder, you might be interested in knowing the GST rates and HSN code for railway goods vans.

GST Rates for Railway Goods Vans

The Goods and Services Tax (GST) is an indirect tax in India that replaced multiple taxes such as excise duty, service tax, and value-added tax (VAT). GST is levied on the supply of goods and services and is divided into four tax slabs: 5%, 12%, 18%, and 28%. The GST rates for railway goods vans fall under the 5% tax slab.

According to the GST Council, the following are the GST rates for railway goods vans:

1. Goods transport vehicles that run on rails: 5%

2. Passenger transport vehicles that run on rails: 5%

It is essential to note that GST rates for railway goods vans are subject to change. You can check the latest rates on the official GST portal.

HSN Code for Railway Goods Vans

The Harmonized System of Nomenclature (HSN) is an internationally accepted system of names and numbers for classifying traded goods. HSN codes are used to levy and collect taxes such as GST, customs duty, and Central Excise Duty.

The HSN code for railway goods vans is 8606. According to the HSN classification, the following are the sub-headings for railway goods vans:

1. 8606 10 - Open wagons and wagons and hopper wagons:

2. 8606 20 - Tank wagons and the like:

3. 8606 30 - Covered wagons and vans:

4. 8606 40 - Locomotive tender wagons:

5. 8606 50 - Wagon for special purposes, e.g., breakdown wagons, crane wagons, and wagon-lits:

6. 8606 90 - Other railway wagons and wagons not self-propelled:

Conclusion

As a small and medium business owner or a startup founder, it is essential to know the GST rates and HSN code for railway goods vans. The GST rates for railway goods vans fall under the 5% tax slab, and the HSN code for railway goods vans is 8606. Knowing the GST rates and HSN code for railway goods vans can help you in the smooth transportation of your goods and in complying with the tax laws of the country.