February 25, 2023


GST rates and HSN code for Railway Passenger Coaches

Transportation in India is a major sector that has been growing exponentially over the years. The Indian Railways, which is the largest transport network in the country, plays a vital role in this sector. Railways provide an efficient and cost-effective mode of transportation, which is why it is widely preferred by many people. The railway passenger coaches have been designed to provide maximum comfort to the passengers, and these coaches are classified under the Harmonized System of Nomenclature (HSN) code 8605.

What is HSN code 8605?

The Harmonized System of Nomenclature (HSN) is an internationally accepted system of product classification developed by the World Customs Organization. HSN code 8605 pertains to railway or tramway passenger coaches, including self-propelled coaches. This code helps in the identification of products and their classification for taxation purposes.

GST Rates for Railway Passenger Coaches

The Goods and Services Tax (GST) rates for railway passenger coaches are as follows:

1. There is a 5% GST rate on railway or tramway passenger coaches, including self-propelled coaches, under HSN code 8605.

2. There is a 12% GST rate on parts and accessories of railway or tramway passenger coaches under HSN code 8607.

It is important to note that GST rates are subject to change as per the government's revised policies.

Benefits of GST for Railway Passenger Coaches

The implementation of GST has brought several benefits to the railway sector, including the following:

1. Unified tax system: GST has replaced multiple taxes such as excise duty, service tax, and VAT, providing a unified tax system for the railway sector.

2. Reduction in tax burden: The GST rates are lower than the previous tax rates, resulting in a reduction in the tax burden on the railway industry.

3. Easy compliance: GST has simplified the tax compliance process by introducing a single tax system that eliminates the need for multiple registrations and filings.

4. Increased transparency: GST has introduced a transparent tax system that enables the government to track the flow of goods and services, thereby reducing the chances of tax evasion and increasing revenue.


The railway passenger coaches are an important part of the Indian Railways, providing a comfortable and efficient mode of transportation to people. The HSN code 8605 classifies these coaches for taxation purposes, and the GST rates for these coaches are 5%. The implementation of GST has brought several benefits to the railway sector, including a unified tax system, a reduction in tax burden, easy compliance, and increased transparency.


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