GST invoice format for a car showroom (car dealer)
A car dealer sells passenger cars under HSN 8703, where small petrol cars up to 1200 cc and diesel cars up to 1500 cc with length up to 4 metres attract 18%, and larger cars and SUVs attract 40% without compensation cess from 22 September 2025. The invoice must show the VIN, engine number, engine capacity, fuel type and length category, ex-showroom price, accessories as separate lines, and the RTO and insurance amounts collected for the buyer outside the taxable value.
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Hatchback petrol 1197 cc, length 3,845 mm (VIN as per annexure)
8703
1 NOS
6,20,000.00
6,20,000.00
18%
SUV diesel 2184 cc, length 4,640 mm
8703
1 NOS
16,50,000.00
16,50,000.00
40%
Hatchback diesel 1493 cc, length 3,995 mm
8703
1 NOS
8,90,000.00
8,90,000.00
18%
Accessory kit: mud flaps, floor guards and door visors
8708
1 SET
6,500.00
6,500.00
18%
Rear parking sensor kit
8512
1 SET
3,800.00
3,800.00
18%
Taxable value
₹31,70,300.00
GST (CGST + SGST, or IGST if inter-state)
₹9,33,654.00
Invoice total
₹41,03,954.00
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a car showroom invoice needs
VIN and engine number
Every car is a unique item for registration, finance and insurance. These numbers on the invoice are what the RTO and the bank check.
Engine capacity, fuel and length
The 18% or 40% rate depends on cc, fuel type and whether the car is under 4,000 mm. Printing these specifications justifies the rate charged on each car.
Variant, colour and model year
Variants and model year change price and resale value. Showing them protects the dealer if the buyer later claims a different trim was promised.
Ex-showroom price and discounts
Customers compare offers line by line. Show the ex-showroom price, consumer offers and corporate discounts on the invoice so the taxable value is clear.
Accessories and extended warranty
Accessories at 18% and extended warranty as a service should not be merged into a car at 40%. Separate lines keep each item at its own rate.
TCS under the Income-tax Act
Motor vehicles above the income tax value threshold attract TCS collected by the seller. Print it as a separate line below the GST total so the buyer can claim it.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
Schedule II of Notification 9/2025-CT(Rate) covers petrol, LPG and CNG cars up to 1200 cc and diesel cars up to 1500 cc, each with length not exceeding 4000 mm, at 18%. All other cars of heading 8703, including mid-size and large cars and SUVs, fall in Schedule III at 40%. The PIB FAQs confirm that the 40% rate replaced 28% plus compensation cess. The dealer must check both cc and length for each variant, because a long version of a small-engine car may cross the 4-metre limit.
Hybrids follow the same split
Hybrid cars with petrol engines and electric motors under 8703 40 and 8703 60 are at 18% if they are up to 1200 cc and up to 4000 mm long, and at 40% if either limit is exceeded. Diesel hybrids follow the 1500 cc test. Fully electric cars are not hybrids; they fall under the electrically operated vehicles entry at 5%. Showrooms selling a mix of petrol, hybrid and electric models need the fuel type in the vehicle master.
Accessories and the principal supply
When a dealer sells a car along with an accessory kit at an extra price, the buyer is purchasing separate goods, and each item takes its own rate. Bundling accessories into the car price on a 40% car means paying 40% on accessories that are at 18%; bundling them into an 18% car is accurate only if they are truly part of the car as supplied by the manufacturer. Separate lines are safer.
Compensation cess stock transition
Dealers held stock on 21 September 2025 on which compensation cess had been paid. The Council's decisions ended compensation cess on cars, and later guidance dealt with the unutilised cess balance. Dealers should follow the official circulars on this point rather than adjusting the sale price informally on invoices.
Demo cars and inter-branch transfers
Demo cars used for test drives and later sold, and cars moved between a dealer's branches in different states, each need proper documents. A transfer to another state's branch is a supply between distinct persons and needs a tax invoice; a sale of a used demo car later is a fresh supply by the dealer and should be invoiced with the car's specifications.
Common billing mistakes
✕Charging 18% on a sub-4-metre car with a 1.5 litre petrol engine, which exceeds the 1200 cc limit and falls at 40%.
✕Including the RTO tax and insurance premium in the GST value on the invoice.
✕Bundling accessories into the car's price and taxing them at the car's rate.
✕Not printing VIN and engine number, so registration is delayed and the finance company rejects the invoice.
Car Showroom GST invoice: FAQ
What is the GST on cars from 22 September 2025?
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Small petrol, LPG and CNG cars up to 1200 cc and diesel cars up to 1500 cc, with length up to 4000 mm, attract 18%. Mid-size and large cars and SUVs above those limits attract 40% without compensation cess.
What is the GST on electric cars?
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Electric cars are electrically operated vehicles and attract 5% under Schedule I of Notification 9/2025-CT(Rate). The rate is not affected by the car's length or the size of the battery.
Is GST charged on the on-road price?
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GST is charged on the transaction value of the car, which is the ex-showroom price after discounts at the time of sale. RTO tax, registration charges and insurance premiums collected for the buyer are not part of that value when recovered as a pure agent.
Does a car dealer issue e-invoices?
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Yes, for B2B sales once its aggregate turnover is above the e-invoicing limit. Sales to individual buyers are B2C and do not need an IRN, though dealers with large turnover must print a dynamic QR code on B2C invoices.