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A motor driving school provides commercial training that is not part of a recognised education qualification, so its course fees are taxed at 18% under SAC 999293, commercial training and coaching services. The invoice should show the learner's name and licence application number, the vehicle class taught, number of sessions and kilometres or hours, the school's licence number under motor vehicle rules, and any RTO fees for learner's or driving licences collected and paid on the learner's behalf, shown outside the taxable fee.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Car driving course, LMV, 21 sessions x 30 min | 999293 | 1 COURSE | 5,500.00 | 5,500.00 | 18% |
| Two-wheeler riding course, 10 sessions | 999293 | 1 COURSE | 2,500.00 | 2,500.00 | 18% |
| Refresher course for licensed drivers, 5 sessions | 999293 | 1 COURSE | 2,000.00 | 2,000.00 | 18% |
| Simulator practice sessions | 999293 | 4 SESSION | 300.00 | 1,200.00 | 18% |
| Taxable value | ₹11,200.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹2,016.00 | ||||
| Invoice total | ₹13,216.00 | ||||
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: Billing for Service Businesses: Models, GST and Best Practice · What Is a SAC Code and How Is It Used Under GST? · Credit Note Under GST: When, How and By When to Issue It
Education services exempt from GST are limited to those provided by educational institutions as part of a curriculum leading to a recognised qualification, and certain approved vocational courses. A private driving school's course does not lead to such a qualification, so its fees fall under commercial training and coaching, SAC 999293, at 18%. Schools sometimes describe themselves as 'institutes' to suggest exemption; the label does not change the tax position.
Fees for learner's licence, driving test and licence issue are payable to the transport department. When the school collects exactly these amounts and pays them on the learner's behalf, with receipts, they can be excluded from the taxable value under Rule 33. Any 'documentation' or 'agent' charge kept by the school for this work is taxable at 18% and must not be merged into the RTO fee line.
Learners usually pay the full course fee at enrolment. GST is due on that advance, and the school should issue a tax invoice at enrolment. If a learner drops out and a partial refund is given, issue a credit note referring to the original invoice so that the tax on the refunded part can be adjusted.
Training cars and two-wheelers with dual controls are capital goods of the school. Credit on motor vehicles is restricted under section 17(5), with exceptions for vehicles used for training on driving such vehicles. That exception covers driving schools, so the school can generally claim credit on training cars, which is a good reason to stay in the regular scheme.
Driving schools also train drivers for transport companies, schools and factories, such as defensive driving or heavy vehicle courses. These are still commercial training at 18%. For B2B clients, print the client's GSTIN, list trainee names in an annexure, and show session dates. If a programme is run under a government-sponsored skill scheme, check whether a specific exemption applies to that scheme before dropping GST, and keep the scheme approval on file.
A single-branch school with modest turnover may qualify for the composition scheme for service providers. It then pays tax at a fixed rate on turnover and issues bills of supply, but it loses credit on training cars and fuel-saving equipment. Since the training-vehicle credit can be large, compare both options for your own figures before you choose.
No. A driving school provides commercial training that does not lead to a recognised qualification, so its fees are taxable at 18% under SAC 999293.
Not if the school collects exactly the RTO fees, pays them on the learner's behalf and shows them separately as a pure agent. Any extra charge for the school's own service is taxable.
Section 17(5) allows credit on motor vehicles used for imparting training on driving such vehicles, so a driving school can generally claim credit on its training vehicles, subject to the other conditions.
Commercial training and coaching services fall under SAC 999293 according to the explanatory notes to the scheme of classification of services.
Yes. Providing the school's vehicle for the RTO driving test is part of the school's service and carries 18%. Show it as a separate line from the course fee so learners can see what they are paying for.
Sources: GST Council — Explanatory notes to the Scheme of Classification of Services · GST Council — Notification 11/2017-CT(Rate), services rates (consolidated)
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