Transport, travel and auto
A two-wheeler service centre bills labour for servicing and repair of motorcycles and scooters under SAC 998714 at 18%, and parts under heading 8714, engine oil under 2710 and tubes under 4013, all at 18% since the September 2025 changes. The invoice must show the job card number, bike registration, odometer reading and service type such as free or paid service, list each part with HSN and quantity, and record labour separately, especially when the manufacturer reimburses free service labour.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| General service labour, 125 cc motorcycle | 998714 | 1 JOB | 450.00 | 450.00 | 18% |
| Engine oil 10W-30 (1 L) | 2710 | 1 BTL | 360.00 | 360.00 | 18% |
| Brake shoe set, rear | 8714 | 1 SET | 320.00 | 320.00 | 18% |
| Chain sprocket kit | 8714 | 1 KIT | 1,450.00 | 1,450.00 | 18% |
| Tube 3.00-18 | 4013 | 1 PCS | 340.00 | 340.00 | 18% |
| Taxable value | ₹2,920.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹525.60 | ||||
| Invoice total | ₹3,445.60 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: What Is a SAC Code and How Is It Used Under GST? · GST Rates and Slabs in India: The Current Structure Explained · POS Billing System: What It Does and How to Run It Daily
Parts and accessories of motorcycles under heading 8714 were among the items moved from 28% to 18%, as listed in the transportation sector of the 56th Council's press release. Notification 9/2025-CT(Rate) carries 8714 for vehicles of 8711 in Schedule II. Garages should update all parts in their software. Older stock on which 28% credit was taken is sold at 18%, which can create excess credit that remains usable for future tax.
During the warranty period manufacturers offer free services. The rider pays for oil and parts, while the manufacturer reimburses the dealer for labour under a claim. That reimbursement is consideration for the dealer's service to the manufacturer and is taxed at 18% on a separate invoice to the manufacturer. The rider's invoice shows labour at zero with a note that it is a free service, so the totals reconcile.
Servicing electric scooters is the same repair service at 18%, but parts may differ. Battery replacement involves goods under 8507 at 18%, chargers for EVs are listed at 5%, and the EV itself is at 5%. Take care with chargers and battery packs when billing EV service, since a wrong rate on a battery is a large error.
Roadside bike garages with small turnover may opt for composition. They then issue bills of supply, cannot charge GST and cannot claim credit on parts. Authorised service centres usually stay in the regular scheme because manufacturers and fleet clients need tax invoices.
After an accident, two-wheeler insurers settle repair bills either cashless with the service centre or by reimbursing the owner. The invoice must separate parts, labour and painting, and show the claim number and surveyor approval. Depreciation on plastic and rubber parts and the compulsory deductible are paid by the rider. If the insurer pays the service centre directly, keep the insurer's settlement letter with the invoice so the receivable can be traced and any short payment billed to the rider.
Delivery companies and courier firms run large two-wheeler fleets and buy annual maintenance contracts. An AMC paid in advance is taxed at 18% when the invoice is issued or payment is received, whichever is earlier. Parts outside the AMC are billed separately as they are used. Record each bike's registration number against the AMC so that work done and parts billed can be audited by the fleet owner.
Labour for servicing and repairing motorcycles and scooters is taxed at 18% under SAC 998714. Parts and oils used are billed as goods, mostly at 18%.
Parts and accessories of motorcycles and scooters under HSN 8714 attract 18% from 22 September 2025, reduced from 28%.
Show the labour line at zero with a 'free service' note and the coupon number, and charge the rider only for parts and oil. Bill the manufacturer separately for the reimbursed labour.
Yes, tyres and tubes for motorcycles under 4011 and 4013 attract 18%. Only bicycle and cycle-rickshaw tyres and tubes are at 5%.
Yes. Washing and polishing a bike is a maintenance service under the same SAC 998714 at 18%. Show it as a separate line if it is charged, or note 'wash included' if it is part of the service package.
Sources: GST Council — Press release, 56th meeting recommendations (rate changes) · CBIC — Notification 9/2025-Integrated Tax (Rate), goods rate schedules · GST Council — Explanatory notes to the Scheme of Classification of Services
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