GST Rate and HSN Code for Cycles

Check the GST on cycles against the current HSN description and effective date before invoicing.

Example 

Arjun, a 36-year-old cycle retailer in Pune with monthly business income of Rs. 1.25 lakh and a CIBIL score of 710, sells a bicycle with a taxable value of Rs. 10,000. GST = Rs. 10,000 × 5% = Rs. 500, so the amount including GST is Rs. 10,500.

GST is calculated by applying the applicable rate to taxable value. For example, if taxable value is Rs. 10,000 and the applicable rate is 5%, GST is Rs. 500 and the total before other charges is Rs. 10,500.

No. You must first establish the correct HSN classification. A cycle, electric vehicle, tyre, accessory, and component can fall under different tariff entries depending on technical characteristics.

GST is a direct tax amount on the taxable value of a cycle or covered part. At a taxable value of Rs. 10,000, the 5% GST rate produces Rs. 500 GST. Other business costs such as freight, packaging, payment processing, inventory, and operating expenses are separate from the GST calculation.

Record the GST on cycles calculation with the HSN, taxable value, and tax amount on the invoice.

• Confirm the product’s HSN classification.
• For bicycles and other non-motorised cycles under HSN 8712, the applicable GST rate is 5%. Parts and accessories covered by HSN 8714 also attract 5% GST under the September 2025 rate rationalisation.
• Apply the correct rate to taxable value.
• Show required GST details on the invoice.

Keep the following documents and records to support the classification, taxable value, and GST treatment of cycles and cycle parts:

• GST records supporting reported output tax and eligible input tax credit, where applicable.
• Purchase and sales records supporting the taxable value and GST calculation.
• Tax invoices showing the applicable HSN and GST rate.
• Product specifications supporting classification under HSN 8712 or HSN 8714, as applicable.

A business loan can be considered for eligible inventory and working-capital requirements after you assess sales cycles and repayment capacity. Bajaj Finance Business Loan offers Rs. 2 lakh to Rs. 80 lakh, with tenures from 12 months to 96 months, subject to business loan eligibility and applicable terms. Approval can depend on verification and document completeness.