BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Luxury goods—from designer bags to high-end cars—come with a premium price tag, and so does their tax. Under the Goods and Services Tax system, luxury products attract higher tax rates to balance affordability with indulgence. Let’s explore the gst for luxury items, their classification, and how it impacts buyers and businesses.
Luxury items are goods that go beyond basic necessity and are usually associated with status, style, or enhanced comfort. They include:
These items are subject to higher GST rates and sometimes additional cess charges.
Get a Free Trial – Best Accounting Software For Small Business
Here’s a table of some common luxury goods and their applicable GST rates:
| Luxury Item | HSN Code | GST Rate | Compensation Cess |
|---|---|---|---|
| High-end cars (above 1500cc) | 8703 | 28% | 15% to 22% |
| Luxury motorcycles (above 350cc) | 8711 | 28% | 3% to 15% |
| Designer clothes/accessories | Varies | 12%–18% | None |
| Perfumes and deodorants | 3303 | 18% | None |
| Premium watches | 9102 | 18% | None |
| Jewellery (gold/diamond) | 7113 | 3% | None |
| Yachts, private aircraft | 8903, 8802 | 28% | 3% to 15% |
| Hotel rooms above ₹7,500/night | 9963 | 18% | None |
Get a Free Trial – Best GST Accounting Software For Small Business
Explore a Free Demo – Best Inventory Management Software For Small Business
Understanding the gst for luxury items helps buyers estimate final prices and allows businesses to stay compliant with proper classification and billing.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.