Chapter 87 of the GST framework covers Vehicles Other Than Railway O, and HSN Code 87037040 specifically identifies Three Wheeled Vehicle for taxation purposes. This classification is mandatory for all businesses engaged in the supply of Three Wheeled Vehicle. Tax rates applicable include CGST at 14.00%, SGST/UTGST at 14.00%, and IGST at 28.00% for interstate movements. The standard unit of measurement is u.
HSN Codes under Chapter 87 – Vehicles Other Than Railway O
Below are related HSN codes from Chapter 87 – Vehicles Other Than Railway O for your reference:
| Chapter | HSN Code | Description | CGST | SGST/UTGST | IGST |
|---|---|---|---|---|---|
| Vehicles Other Than Railway O... | 87011000 | Tractors (Other Than Tractors Of Heading 8709) Ped... | 0 | 0 | 0 |
| Vehicles Other Than Railway O... | 87012010 | Tractors (Other Than Tractors Of Heading 8709) Roa... | N.a. | N.a. | N.a. |
| Vehicles Other Than Railway O... | 87012090 | Tractors (Other Than Tractors Ofheading 8709) Road... | N.a. | N.a. | N.a. |
| Vehicles Other Than Railway O... | 87012100 | Vehicles Other Than Railway Or Tramway Rolling-Sto... | 0 | 0 | 0 |
| Vehicles Other Than Railway O... | 87012200 | Vehicles Other Than Railway Or Tramway Rolling-Sto... | 0 | 0 | 0 |
| Vehicles Other Than Railway O... | 87012300 | Vehicles Other Than Railway Or Tramway Rolling-Sto... | 0 | 0 | 0 |
| Vehicles Other Than Railway O... | 87012400 | Vehicles Other Than Railway Or Tramway Rolling-Sto... | 0 | 0 | 0 |
| Vehicles Other Than Railway O... | 87012900 | Vehicles Other Than Railway Or Tramway Rolling-Sto... | 0 | 0 | 0 |
| Vehicles Other Than Railway O... | 87013011 | Tractors (Other Than Tractors Ofheading 8709 Track... | 0.00% | 0.00% | 0.00% |
| Vehicles Other Than Railway O... | 87013019 | Tractors (Other Than Tractors Ofheading 8709 Track... | 0.00% | 0.00% | 0.00% |
GST Rates for HSN 87037040
The taxation of Three Wheeled Vehicle under HSN Code 87037040 depends on supply location. Intrastate transactions require CGST at 14.00% and SGST/UTGST at 14.00%. Interstate supplies are charged IGST at 28.00%. Invoices should consistently use u for Vehicles Other Than Railway O goods under Chapter 87.
Who Should Use HSN Code 87037040?
Any business engaged in supplying Three Wheeled Vehicle must apply HSN 87037040 on invoices. The Vehicles Other Than Railway O category under Chapter 87 requires this classification for wholesalers, retailers, exporters, and online marketplaces alike.
Business Registration Requirements
Entering the Three Wheeled Vehicle market requires essential registrations. GST registration enables legal tax collection on HSN 87037040 goods. For cross-border trade in Vehicles Other Than Railway O items, secure an Import Export Code. Exporters additionally need AD Code registration for bank processing. Begin with company registration to establish your business entity.
Why Correct Classification Matters
Using HSN Code 87037040 accurately for Three Wheeled Vehicle avoids compliance issues and facilitates credit claims. Monitor changes to 14.00%, 14.00%, and 28.00% rates for Chapter 87 – Vehicles Other Than Railway O to maintain accurate filings and smooth business operations.
Frequently Asked Questions (FAQs)
What is the unit of measurement for HSN 87037040?
The standard unit of measurement for Three Wheeled Vehicle under HSN Code 87037040 is u. All invoices and GST returns must reflect quantities using this measurement standard.
Is HSN Code 87037040 mandatory for small businesses?
Yes, businesses dealing in Three Wheeled Vehicle must use HSN 87037040 on invoices regardless of their size. The number of digits required may vary based on turnover thresholds set by GST rules.
What happens if I use wrong HSN code for Three Wheeled Vehicle?
Using incorrect classification can result in wrong tax calculation, rejected input credits, and penalties during assessment. Always verify HSN 87037040 for Vehicles Other Than Railway O goods before invoicing.
Do I need AD Code registration for exporting Three Wheeled Vehicle?
Yes, AD Code registration is required for exporters dealing in Three Wheeled Vehicle under Vehicles Other Than Railway O. This registration links your bank account to process foreign currency payments from overseas buyers.
