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Garage › GST on garage bills
GST on garage and car service bills
A garage bill has parts (goods) and labour (a service). Show them on separate lines so each is taxed at its own rate.
Labour
Repair and maintenance of vehicles is a service under SAC 9987, taxed at 18%. Mark such lines "Labour / service".
Parts
Parts are goods taxed by their HSN. The GST Council cut the rate on auto parts from 28% to 18% from 22 September 2025, but some items (for example tyres for some vehicles, batteries, lubricants) have their own HSN and rate: use the rate printed on your supplier’s bill for each part. The rate is a typed field on every line, never fixed by the page.
Example
| Line | Taxable | GST | Tax |
|---|---|---|---|
| Brake pads (part) | ₹1,200 | 18% | ₹216 |
| Brake service (labour) | ₹500 | 18% | ₹90 |
Total ₹2,006: CGST ₹153 + SGST ₹153 within your state, IGST ₹306 to another state. (Example rates; check each part.)
Insurance jobs
Keep the surveyor’s approval with the workshop copy. Bill as the insurer and customer agreed: the customer’s share and the insurer’s share are usually settled separately.
Small garages
- Not registered: no GST may be charged. Choose "Invoice (not GST registered)".
- Composition: choose "Bill of supply"; no GST is shown.