GST Classification and Rate for Automotive Brake Pads and Shoes
The Uttarakhand Authority for Advance Ruling decided that mounted brake pads and shoes are classified as motor vehicle parts under HSN 8708.
- Ruling
- Ruling No. 02/2017-18 dated 14th March 2018
- Dated
- 14 Mar 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- The company asked for the correct GST classification of brake pads.
- The authority ruled these items fall under HSN 8708.
- The applicable GST rate for these parts is 28%.
In short
The company asked whether their brake pads and shoes should be taxed as friction material or as motor vehicle parts. The authority examined whether these items, which are bonded to metal plates, fit the definition of parts specifically made for vehicles.
What has changed
How it worked before
Businesses were uncertain whether to classify these finished, mounted brake components as raw friction materials or as specific vehicle parts.
What has changed
The authority clarified that because these parts are mounted to metal plates and designed for specific vehicles, they must be classified under HSN 8708. This confirms that manufacturers must apply the 28% GST rate associated with motor vehicle parts rather than rates for raw friction materials.
Who this affects
Manufacturers and suppliers of automotive brake pads, brake shoes, and similar mounted braking components.
An example
Imagine a business that makes brake pads for motorcycles. They might wonder if they can use a lower tax rate by classifying them as friction material. Based on this ruling, they should classify them as motor vehicle parts under HSN 8708 and apply the 28% GST rate.
What you should do
If you manufacture similar parts, review your current HSN classification to ensure it aligns with this interpretation. Remember that an advance ruling only binds the company that asked and its local tax office; it is not a universal law for your business.
If you do nothing
If you classify your goods incorrectly, you risk paying the wrong amount of tax. A tax officer may later demand the difference, along with interest and potential penalties for underpayment. Relying on a ruling that does not apply to your specific case can lead to costly disputes during an audit.
The terms explained
- HSN
- Harmonized System of Nomenclature is a code used to classify goods for tax purposes.
- Friction material
- Materials used to create resistance, such as the lining on a brake pad.
- Mounted
- When a material is attached or bonded to a base, such as a metal plate, to form a finished part.
The ruling in detail
Authority for Advance Ruling
M/s Indo German Brakes Private Limited, PO- Majra, Niranjanpur, Dehradun
Ruling No. 02/2017-18 dated 14th March 2018 · Uttarakhand
Questions before the authority
- Classification of Disc Brake Pads & Brakes Shoes being used in automobiles
- Rate of applicable GST on Disc Brake Pads & Brakes Shoes being used in automobiles
Facts
The applicant manufactures disc brake pads and brake shoes for various two and four-wheeled vehicles. These products are created by bonding friction material onto a metal plate, which is then cured and finished for the secondary replacement market. The applicant sought clarification on whether these items should be classified as friction material under HSN 6813 or as parts of motor vehicles under HSN 8708.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification | HSN 8708 Classified as parts and accessories of motor vehicles |
| GST Rate | 28% Applicable as per the classification under Chapter 8708 |
The authority held that the products are correctly classified as parts and accessories of motor vehicles under HSN 8708. Consequently, the applicable GST rate is 28%.
Reasoning
The authority determined that HSN 6813 applies only to non-mounted friction materials. Since the applicant's products are bonded to a metal plate and specifically designed for use in the braking systems of particular vehicle models, they fail the criteria for HSN 6813. The products satisfy the requirements for HSN 8708, as they are identifiable as parts solely or principally for use with motor vehicles of headings 8701 to 8705. The decision relied on the interpretation of Section XVII notes and HSN Explanatory Notes regarding the exclusion of mounted brake linings from heading 6813.
Provisions relied on
- Section 97(1) of the CGST/SGST Act, 2017
- Section 97(2)(a) and (e) of the CGST/SGST Act, 2017
- Chapter 6813 of the GST Tariff
- Chapter 8708 of the GST Tariff
- Section XVII Note 2 and 3 of the Tariff
For the practitioner
This ruling clarifies that **mounted brake linings** for specific vehicles are excluded from HSN 6813 and must be classified under HSN 8708. It provides a clear precedent for manufacturers of automotive replacement parts to classify their goods based on their **commercial identity** and specific vehicle compatibility. It does not address products that are not mounted or those not intended for use in motor vehicles.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/02-2017-18_dtd_14-03-18_uttrakhand.pdf
Legibility of the scan, as read: high.
Prepared 12-10-2026.
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