GST Rates on Rubber Products like Tyres and Tubes in India

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August 2, 2019

GST on Rubber Products

GST, or Goods & Services Tax, was introduced in India on the 1st of July, 2017, as a one-in-all indirect tax system. At the time of the launch, GST was divided into the following six tax slabs: Nil, 0%, 5%, 12%, 18%, and 28%.

Before GST

Before the implementation of GST in India, many rubber items such as Rubber bands were being taxed at a very high rate of 31 per cent.

Post GST

After the introduction of GST in India, rubber products now fall into the category of GST goods, that means goods & services tax at different rates is charged on the various rubber-made items.

Rubber and Rubber products have been included under chapter 40 of HSN code for GST purpose. At the time of GST launch, the tax rates were fixed for rubber products, however, the GST rate on some products was changed on a later date. The updates are available accordingly.

GST rate on Rubber Goods

Rubber products, based on the type and uses, have been included under the following GST rates:

NIL GST

1. Condoms and contraceptives

0% GST

None

5% GST

1. Pneumatic tyres or inner tyre tubes used in bicycles, rickshaws and three-wheeler rickshaws

2. Natural rubber, gutta-percha, guayule, balata, chicle and other natural gums, in primary, plates, sheets or strip forms

3. Toy balloons made of natural rubber latex

12% GST

1. Nipples of feeding bottles

2. Latex Rubber Thread

3. Rubber gloves used in Surgery or medical examination

Also Read: GST Impact on Tourism Industry

18% GST

1. Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strip; mixtures of any natural rubber product with any other product of this heading, in primary forms or in plates, sheets or strip; such as Latex, styrene butadiene rubber, butadiene rubber (BR), Isobuteneisoprene (butyl) rubber (IIR), Ethylene-propyleneNon-conjugated diene rubber (EPDM)

2. Reclaimed rubber in primary forms or in plates, sheets or strip

3. Compounded unvulcanised rubber, in primary, plates, sheets or strip form

4. Unvulcanised rubber in other forms (such as rods, profile shapes and tubes) and articles (for example, discs and rings)

5. Thread and cord made of vulcanised rubber

6. Plates, strip, sheets, rods and profile shapes made of vulcanised rubber

7. Tubes, hoses and pipes made of vulcanised rubber, with or without their fittings

8. Conveyor or transmission belts or belting made of vulcanised rubber

9. Hygienic or pharmaceutical articles (including teats) made of vulcanised rubber, with or without hard rubber fittings

10. Apparel goods and clothing accessories (including gloves, mittens and mitts) made of vulcanised rubber [except for Surgical gloves]

11. Rubber Erasers

28% GST

1. New pneumatic (air/gas) rubber tyres used in motor cars, buses, motor cycles, lorries, etc

2. Retreaded or used flaps

Recommended: GST on e-Rickshaw Tyres and Batteries

Reduction (or changes) in GST Rates of Rubber Products

GST Council, the official GST authority of India, meets regularly to discuss and provide solutions for the GST related problems and issues. Based on the discussion in the GST meeting held in October 2017, the GST rate on the following rubber products was decreased.

From 18% to 5%.

1. Waste, parings and scrap of rubber (other than hard rubber) and powders and granules obtained therefrom.

2. Specified parts of aircraft, including aircraft tyres

From 28% to 5%

1. Hard Rubber waste or scrap

From 28% to 12%

1. Rubber bands

From 28% to 18%

1. Rear Tractor tyres and tubes

2. Re-treaded or used pneumatic rubber tyres

3. Inner rubber tubes used in motor cars, buses, motor cycles, lorries, etc.

4. Other vulcanised rubber products including rubber boats or dock fenders, floor coverings and mats, air mattress, cushions, rubber cots on textile industry, etc made of vulcanised rubber (other than erasers)

5. Rice rubber rolls for paddy dehusking machine

6. Hard rubber and goods made of Hard Rubber (such as printer rollers, textile rollers and cyclostyling rollers), except for Hard Rubber waste or scrap

To conclude, the overall tax rate on rubber items as well on natural/hard rubber has reduced a lot after the introduction of GST in India.

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