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Published on:
February 25, 2023
By
Prerna

Special Motor Vehciles - GST Rates & HSN Code 8705

Special motor vehicles have always been a topic of discussion, especially when it comes to GST rates and HSN codes. In this article, we will cover in detail the GST rates and HSN code for special motor vehicles, and how it can impact small and medium businesses.

What are Special Motor Vehicles?

Special Motor Vehicles are those vehicles, which are designed and built for specific purposes, such as firefighting, ambulance, or any other emergency services. These vehicles are generally not used for personal or commercial purposes and come under the category of 'Special Purpose Vehicles'.

GST Rates for Special Motor Vehicles

The GST rates for special motor vehicles vary depending on the type of vehicle. The current GST rates for special motor vehicles are:

1. Firefighting vehicles – 18%

2. Ambulances – 12%

3. Other special purpose vehicles used in construction, mining, and other industries – 28%

HSN Code for Special Motor Vehicles

HSN codes are used to classify goods under the GST regime. The HSN code for special motor vehicles is 8705. This code falls under the category of 'Road Vehicles (including air-cushion vehicles)'. The HSN code helps in identifying the type of vehicle and its corresponding GST rate.

Impact on Small and Medium Businesses

The GST rates and HSN code for special motor vehicles can have a significant impact on small and medium businesses. For businesses that deal with special purpose vehicles, it is important to understand the rates and codes to avoid any confusion and compliance issues. It is also essential to keep track of any changes in the GST rates and HSN codes for special motor vehicles to avoid any penalties.

Conclusion

In conclusion, special motor vehicles play a crucial role in emergency services, construction, mining, and other industries. It is important to understand the GST rates and HSN code for special motor vehicles to ensure compliance and avoid any legal issues. Small and medium businesses dealing with special purpose vehicles must keep track of any changes in the rates and codes to avoid any penalties.

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Updated on:
March 16, 2024