GST on Forklift Tyres in India: HSN Code, Rate and Input Tax Credit
Before every forklift tyre purchase order, Indian procurement teams need to know three things: the HSN code, the GST rate, and whether ITC is available. This guide answers all three — and explains the compliance difference between buying from a domestic manufacturer and importing.
Disclaimer: This article provides general information about GST classification and rates as applicable to solid forklift tyres in India. It is not tax or legal advice. HSN classification and ITC eligibility depend on the specific nature of the goods and their use. Verify current rates from the CBIC official portal (cbic-gst.gov.in) and consult a qualified Chartered Accountant for advice specific to your business and transactions.
The Direct Answer
Solid forklift tyres — including solid resilient tyres, press-on band (POB) tyres, and cushion tyres for industrial use — are classified under HSN code 40129090 and attract 18% GST in India.
The rate is split as 9% CGST + 9% SGST for intra-state transactions, or a flat 18% IGST for inter-state supply. This rate has been stable at 18% since GST inception in July 2017.
| Detail | Value |
|---|---|
| HSN Chapter | 40 — Rubber and articles thereof |
| HSN Heading | 4012 — Retreaded / used pneumatic tyres; solid or cushion tyres |
| HSN Subheading | 401290 — Other (solid/cushion tyres) |
| HSN Tariff Item | 40129090 — Other (solid/cushion tyres for industrial use) |
| GST Rate | 18% (9% CGST + 9% SGST / 18% IGST) |
| Rate applicable since | July 2017 (GST inception) |
| IGST on imports | 18% (mirrors domestic GST) |
Note on HSN 4012 sub-codes: Some sources reference 40129020 (solid rubber tyres for other vehicles) as a more specific tariff item within the same 401290 subheading. Both 40129020 and 40129090 fall under the same 18% GST bracket. Confirm the exact code on your supplier's invoice with your CA, particularly if cross-border transactions or customs classification is involved.
What Falls Under HSN 40129090
HSN 40129090 covers solid and cushion rubber tyres that do not fall under more specific tariff items within Subheading 401290. For industrial use, this includes:
- Solid resilient (solid pneumatic) forklift tyres — pressed onto split rims
- Press-on band (POB) tyres — pressed onto flat steel hubs for reach trucks and pallet stackers
- Cushion tyres for electric and IC counterbalance forklifts
- Solid tyres for other industrial material handling equipment (tow tractors, platform trucks, order pickers)
Pneumatic forklift tyres (air-filled) are classified under different HSN codes within Chapter 40. Foam-filled tyres may attract a different classification depending on their construction — consult your CA if classifying foam-filled products.
Input Tax Credit (ITC) on Forklift Tyres
For businesses that are GST-registered and use forklifts as part of their taxable business activity, ITC on forklift tyre purchases is generally available. Here is why:
Section 17(5) of the CGST Act blocks ITC on motor vehicles and their parts and accessories. However, forklifts are not classified as “motor vehicles” under the Motor Vehicles Act 1988 — they are not designed for travel on public roads and are not registered with the RTO for road use. As a result, the Section 17(5) block on motor vehicles and parts generally does not apply to forklifts or forklift tyres.
This means forklift tyres purchased for use in a manufacturing facility, warehouse, or industrial operation are generally eligible for ITC — provided:
- The purchasing business is GST-registered with a valid GSTIN
- The supplier (tyre manufacturer or dealer) is also GST-registered
- The supplier has correctly filed GSTR-1 and the purchase reflects in GSTR-2B
- The tyres are used for business purposes and not for personal or exempt activities
ITC eligibility is not automatic — it depends on correct GST filing by both supplier and buyer, and on the nature of business use. Always verify with your CA before claiming ITC on capital goods or consumables of significant value.
Domestic Purchase vs Import: Compliance Difference
Many Indian procurement teams compare solid forklift tyres from domestic manufacturers against imported tyres — primarily from China and Taiwan. Beyond price, there are important GST and compliance differences:
Buying from a domestic GST-registered manufacturer
- Invoice in INR — no currency conversion or exchange rate risk
- GST charged at 18% — shown clearly on the tax invoice; ITC available in the same return cycle
- GSTR-2B reconciliation is straightforward — domestic supplier's GSTR-1 filing directly populates buyer's GSTR-2B
- BIS/QCO compliance: Tyres manufactured by a domestic producer for the Indian market are not subject to the BIS import certification requirement — they are governed by domestic manufacturing standards
- No BIS exemption list dependency: Domestic manufacturers are not affected when DPIIT removes a tyre size from the BIS exemption list (see below)
Importing forklift tyres
- Basic Customs Duty (BCD) applies in addition to 18% IGST
- IGST paid at import — can be claimed as ITC, but requires correct import documentation (Bill of Entry) and may take longer to appear in GSTR-2B
- BIS/QCO requirement: Imported solid tyres for industrial use must comply with BIS marking requirements unless the specific size appears on DPIIT's current BIS exemption list
- Exemption list risk: DPIIT updates the BIS exemption list periodically. A tyre size that is “exempt” today can be removed, creating supply disruption. Domestic supply from a manufacturer like Adamas carries no such risk
The BIS Exemption List — A Supply Chain Risk to Understand
Under India's Quality Control Orders (QCO), certain product categories require mandatory BIS certification before import. For industrial tyres, DPIIT maintains a list of sizes that are “exempt” from the BIS requirement — typically because they are not manufactured domestically in sufficient quantities.
This exemption list is updated periodically. As domestic manufacturing capacity grows — including manufacturers like Adamas expanding their size range — sizes are progressively removed from the exemption list. When a size is removed, importers of that size must obtain BIS certification for their product before it can be imported, or switch to a domestic supplier.
For procurement planning, this means: an import supply chain built on a BIS-exempt size is exposed to regulatory risk at each review. A domestic supplier eliminates this exposure entirely.
Practical Checklist for Procurement Teams
- Confirm the HSN code on your supplier's invoice is within Chapter 4012 for solid forklift tyres (typically 40129090)
- Verify the GST rate on the invoice is 18%
- Confirm your supplier is GST-registered (valid GSTIN on invoice)
- Check that the purchase reflects in your GSTR-2B before claiming ITC
- For imports: verify BIS exemption status for your specific tyre size at the current DPIIT exemption list before placing the order
- Consult your CA on ITC eligibility specific to your business activity and accounting treatment