A taxi or cab operator providing chauffeur-driven passenger transport bills under SAC 996412 and, where fuel cost is included in the fare, charges 5% with credit only on input services in the same line of business, or 18% with full credit. The invoice should show the vehicle number, trip date, pickup and drop locations, kilometres and hours, driver allowance and night charges, and list tolls, parking and state entry tax as reimbursements, so the corporate client can verify each trip.
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Local cab hire, sedan, 8 hrs/80 km package (duty slip 4521)
996412
6 DUTY
2,200.00
13,200.00
5%
Extra kilometres beyond package
996412
45 KM
14.00
630.00
5%
Outstation trip Pune-Mumbai-Pune, SUV (fuel included)
996412
1 TRIP
6,500.00
6,500.00
5%
Driver night allowance
996412
1 NIGHT
300.00
300.00
5%
Taxable value
₹20,630.00
GST (CGST + SGST, or IGST if inter-state)
₹1,031.50
Invoice total
₹21,661.50
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a taxi service invoice needs
Vehicle registration number and type
Corporate travel policies set the class of car allowed. The vehicle number and type (hatchback, sedan, SUV) let the client match the duty slip and confirm the right class was supplied.
Duty slip or trip ID
Each outstation or local duty has a slip signed by the passenger. Quoting its number on the invoice is how admin teams approve cab bills and catch duplicate claims.
Opening and closing kilometres
Packages such as 8 hours or 80 km depend on readings. Printing both readings and extra kilometres justifies extra charges and helps settle disputes quickly.
Driver allowance and night halt
Outstation trips include driver bata and night charges. Show them as separate taxable lines, since they form part of the passenger transport service value.
Tolls, parking and state permit charges
These are paid on the client's behalf during the trip. Shown separately with receipts attached, they can be recovered as pure agent amounts outside the taxable value.
GST option statement
State on the invoice whether the 5% rate (credit restricted to same-line input services) or 18% with full credit is being charged, so the client applies the right credit treatment.
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)
For passenger transport by motor vehicle where fuel cost is included, the 56th GST Council kept the 5% rate with credit of input services in the same line of business, and changed the full-credit option from 12% to 18% from 22 September 2025. A cab operator at 5% can take credit on cabs hired from another operator, but not on new cars, tyres or servicing. An operator that buys a fleet and wants credit on vehicles must charge 18% instead. Print the chosen rate consistently for similar trips.
Reverse charge for corporate cab renting
Renting of a motor vehicle designed to carry passengers with fuel included, supplied by a person other than a body corporate to a body corporate, is notified for reverse charge when the supplier charges 5%. A proprietor or firm running cabs for a company then issues an invoice without tax, marked 'tax payable on reverse charge', and the company pays. If the operator charges 18%, tax is paid by the operator under forward charge.
Metered taxis, autos and aggregators
Passenger transport by metered cabs and auto rickshaws is exempt under the services exemption notification, so a single-car meter taxi owner usually issues no GST invoice for street fares. When rides are booked through an aggregator app, the platform is treated as the supplier under section 9(5) and pays GST on the ride. Owners who also run corporate duties must separate those direct bills, which are taxable, from app rides.
Input credit limits for the client
Section 17(5) blocks credit on rent-a-cab services for most recipients, except where the service is used for making the same category of outward supply or is obligatory for employers under a law. A company may therefore not be able to claim GST on employee cab bills even though the invoice is correct. This is a point to explain to clients, not a reason to drop GST from the bill.
Common billing mistakes
✕Charging 5% on cab bills and also claiming credit on the purchase of new cars and their insurance.
✕Adding tolls and parking into the trip amount and charging GST on them even though they were paid on the client's behalf at actual cost.
✕Ignoring reverse charge when a proprietor-run cab service bills a private limited company and collecting 5% tax from it anyway.
✕Issuing one monthly lump-sum cab bill without duty slip numbers, so the client cannot verify trips.
Taxi Service GST invoice: FAQ
What is the GST rate on taxi services after September 2025?
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Passenger transport by motor cab with fuel included is taxed at 5% with credit limited to input services in the same line of business, or 18% with full input tax credit. The 18% option replaced the earlier 12% option from 22 September 2025.
What SAC code should a cab invoice use?
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Taxi services, including radio taxi and chauffeur-driven car hire, fall under SAC 996412 according to the explanatory notes to the scheme of classification of services. Renting a car with operator for a period of time falls under 996601.
Do I need GST registration for one or two cabs?
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Registration is compulsory once aggregate turnover crosses the threshold for service providers in your state. A driver attached only to an aggregator app does not pay GST on those rides, because the aggregator is liable under section 9(5), but direct corporate bookings count towards the threshold.
Is GST charged on toll paid during a trip?
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Toll charges recovered at actual cost, shown separately and supported by receipts, can be excluded under the pure agent rule. If tolls are hidden inside a package fare, they become part of the taxable value of the cab service.