Transport, travel and auto
A towing and vehicle recovery business supplies towing services for commercial and private vehicles under SAC 996744, taxed at 18%. The invoice should show the disabled vehicle's number and type, pickup and drop locations, distance towed, tow truck type such as flatbed or wheel-lift, waiting time, and the insurer or roadside assistance company's claim reference where it is paying. Recovery from accidents on highways often involves a crane, so crane hours should be listed separately.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Flatbed towing, base charge up to 10 km | 996744 | 1 TRIP | 1,800.00 | 1,800.00 | 18% |
| Additional kilometres towed | 996744 | 26 KM | 45.00 | 1,170.00 | 18% |
| Waiting charges at accident site | 996744 | 2 HOUR | 400.00 | 800.00 | 18% |
| Night service surcharge (22:00 to 06:00) | 996744 | 1 TRIP | 500.00 | 500.00 | 18% |
| Taxable value | ₹4,270.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹768.60 | ||||
| Invoice total | ₹5,038.60 | ||||
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? · Billing for Service Businesses: Models, GST and Best Practice · GST Rates and Slabs in India: The Current Structure Explained
The explanatory notes classify towing services for commercial and private vehicles under SAC 996744 in supporting services for road transport. It is not a goods transport agency service, since the towing company does not issue a consignment note for goods, and the vehicle is towed as a breakdown service. The rate is 18% with credit, and the reverse charge rules for GTA do not apply even when the customer is a company.
Many towing businesses work as vendors for roadside assistance companies that sell plans with car insurance or new cars. The towing company bills the RSA company, not the motorist, at 18%. The motorist pays only for kilometres beyond the plan. Two invoices may arise from one tow: one to the RSA company and one to the motorist for the excess. Keep the case reference on both so the totals do not overlap.
Breakdown lorries and crane lorries are special purpose vehicles under heading 8705, listed at 18% in Notification 9/2025-CT(Rate). A towing company uses them to supply its taxable service, so credit on their purchase is generally available, as the section 17(5) block applies mainly to vehicles carrying persons. This is one of the main financial benefits of staying in the regular scheme.
Operators contracted by traffic police or municipal bodies to tow illegally parked vehicles may collect towing fees from vehicle owners under the authority's rules. Whether GST applies, and who is the supplier, depends on the contract. Check the contract terms and keep the authority's orders on file before deciding the tax treatment of these collections.
Heavy recovery after a truck overturns often needs a hydraulic crane in addition to a tow truck. When the towing company supplies the crane with its own operator as part of the recovery job, it is part of a single recovery service and is billed at 18% with the tow. When the crane is hired from another owner, that owner bills the towing company, and the towing company recovers the cost within its own invoice. Itemising crane hours, crane capacity and the site location on the bill helps the insurer approve the claim, since crane charges are the most frequently questioned line in highway recovery.
Towing services for commercial and private vehicles are taxed at 18% under SAC 996744.
No. Towing a broken-down vehicle is a supporting service for road transport, not transport of goods by a GTA. It carries 18% and is not under reverse charge.
Breakdown lorries under heading 8705 carry 18% GST, and since they are used to supply taxable towing services, credit is generally available, subject to normal conditions.
Issue the invoice to the party that engaged and pays for the service, usually the RSA company or insurer under a vendor contract, or the vehicle owner for direct calls.
Yes. Whether the insurer pays directly or reimburses the owner, the towing service is taxable at 18%. The invoice should be raised on the party that engages the towing company, with the claim number printed for reference.
Sources: GST Council — Explanatory notes to the Scheme of Classification of Services · CBIC — Notification 9/2025-Integrated Tax (Rate), goods rate schedules
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