Other businesses

GST invoice format for a generator rental business

A generator hire bill must show the kVA rating, rental period, hours run and every recovery the hirer pays for, because diesel and transport recovered from the client are part of the taxable value. Leasing of machinery with or without operator falls under SAC 997319, and electric generating sets under 8502 are 18%, so DG set hire is billed at 18%. Beyond the basics, record the set serial number, site, start and end meter readings, operator shifts, fuel supplied, transport and loading charges and the security deposit.

Download this format free

Pre-filled with generator rental sample items and fields. No sign-up.

Excel (.xlsx, with formulas) Word (.docx) PDF (print and fill)

Or create these invoices in software, free

Sample generator rental invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Silent DG set 125 kVA hire with operator, per day	997319	4 DAY	7,500.00	30,000.00	18%
Extra running hours beyond 8 hours per day	997319	10 HOUR	600.00	6,000.00	18%
Diesel supplied during hire, recovered at actuals	997319	300 LTR	92.00	27,600.00	18%
Transport and crane loading, to and from site	997319	2 TRIP	6,000.00	12,000.00	18%
Taxable value				₹75,600.00
GST (CGST + SGST, or IGST if inter-state)				₹13,608.00
Invoice total				₹89,208.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a generator rental invoice needs

DG set rating and serial number: Write the capacity, such as 62.5 kVA silent DG set, and the serial number. Rental rates depend on capacity, and the serial identifies which set was on site if a dispute about breakdowns arises.
Hour meter readings: Generators are charged per day or per running hour. Opening and closing hour meter readings on the invoice show actual usage and are the basis for any extra-hours charge.
Rental period: Show the start and end date and time. Events and construction sites often extend at short notice, and the dates support the billing for each additional day.
Operator shifts: If an operator is supplied, record the number of shifts or days. Operator charges are part of the rental supply and need to be visible for the client to check attendance.
Diesel supplied and recovered: State the litres of diesel filled by the rental company and the rate charged. Fuel recovery is part of the consideration and must be billed with GST, even though diesel itself is outside GST.
Transport and crane charges: Moving a DG set needs a truck and often a crane. Separate lines for these one-time charges show the full cost of the hire and are taxed as part of the same supply.

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)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a generator rental

Hire is taxed like the generator

Leasing or rental of machinery, with or without operator, is classed under heading 9973, with SAC 997319 covering other machinery and equipment. The rate entry for these leases follows the rate on a sale of like goods, and electric generating sets of heading 8502 are in the 18% schedule. DG set hire, with or without an operator, is therefore billed at 18%. Do not use the lower rates meant for transport vehicle rental under heading 9966.

Diesel recovery is part of the value

Diesel is outside GST, so many hire companies bill fuel on a separate debit note without tax. That is incorrect when the rental company buys the fuel and fills the set. Under section 15, the transaction value includes any amount the supplier charges for anything done in connection with the supply, so fuel recovered from the client forms part of the rental consideration and attracts 18%. If the client buys and fills its own diesel, there is nothing to bill.

Transport and crane charges

Charges for bringing the set to site and taking it back are incidental to the rental and taxed with it at 18%. The rental company is not acting as a goods transport agency, because it is not carrying goods for the client under a consignment note, so reverse charge does not apply to these charges on the client's side.

Moving sets between sites and e-way bills

Taking your own DG set to a client's site for hire is not a sale, but the movement of goods worth more than Rs 50,000 still needs an e-way bill, generated on a delivery challan with the reason for movement. Sets moving between states should be checked against the inter-state rules before dispatch.

Long-term site contracts

Construction and infrastructure sites often hire sets for months. These are continuous supplies; raise invoices on the dates fixed in the contract and keep hour-meter logs signed by the client's engineer as the basis for each bill.

Common billing mistakes

Billing diesel recovered from the client on a separate debit note without GST.
Applying a lower vehicle-rental rate to DG set hire because the set was mounted on a trailer.
Omitting opening and closing hour readings, leaving extra-hours charges without proof.
Moving a high-value DG set to a client's site without a delivery challan and e-way bill.
Charging full days for a set that broke down mid-hire without any credit note, leading to a payment dispute and an overstated taxable value.

Generator rental GST invoice: FAQ

What is the GST rate on DG set rental?

18%. Rental of machinery follows the rate on like goods, and electric generating sets under heading 8502 are listed at 18%.

Should I charge GST on diesel I bill to the client?

Yes, when you supply the diesel as part of the hire. It forms part of the value of the rental service and is taxed at 18% with it.

Which SAC code is used for generator hire?

997319, leasing or rental services concerning other machinery and equipment with or without operator.

Is the operator charge billed separately?

It can be a separate line, but it is part of the same rental supply and is taxed at 18%.

How should I bill breakdown days?

If the set failed and was not replaced, reduce the hire days on the invoice or issue a credit note against the original bill, quoting the hour-meter log, so the tax on the unused days is reversed properly.

Sources: CBIC — Notification 9/2025-Integrated Tax (Rate), goods rate schedules · CBIC — Notification 9/2025-Central Tax (Rate), 17 Sep 2025 · CBIC tax information portal (notifications and SAC scheme) · GST Council — rate rationalisation press release, 56th meeting

More formats: AC repair and service · Bicycle repair shop · CCTV installer · Computer and laptop repair shop · Computer training institute · Cyber cafe · DJ and sound system rental · Dry cleaner · all businesses