GST invoice format for truck rental (goods carriage hire with driver)
A truck owner who hires out a goods carriage with driver for a period, without issuing a consignment note, supplies renting of a goods carriage with operator under heading 9966 rather than GTA freight. From 22 September 2025 this is taxed at 5% with credit of input services in the same line of business, or 18% with full credit, where fuel cost is included. The invoice should show the vehicle number, capacity, hire period, kilometres or hours used, fuel inclusion, and that the hirer controls the routes.
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Hire of 9-tonne truck with driver, fuel included, monthly (MH12 AB 1234)
996601
1 MONTH
85,000.00
85,000.00
5%
Extra kilometres beyond 3,000 km allowance
996601
420 KM
18.00
7,560.00
5%
Driver overtime
996601
16 HOUR
120.00
1,920.00
5%
Pickup 1-tonne with driver, daily hire
996601
6 DAY
2,400.00
14,400.00
5%
Taxable value
₹1,08,880.00
GST (CGST + SGST, or IGST if inter-state)
₹5,444.00
Invoice total
₹1,14,324.00
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a truck rental invoice needs
Vehicle number and payload capacity
A 1-tonne pickup, a 9-tonne truck and a 25-tonne trailer rent at very different rates. Number and capacity show the hirer which vehicle was supplied.
Hire period and basis
Truck rental is billed per day, per month or per trip under a time charter. Showing the basis and dates distinguishes it from per-consignment freight.
Fuel included or excluded
The 5% and 18% rates apply where fuel cost is included. If the hirer pays for fuel, state it clearly, since the rental then falls under a different entry.
Trip sheet or logbook reference
The driver keeps a logbook of trips run for the hirer. Quoting it lets the hirer approve kilometres and overtime claimed.
No consignment note issued
Because a GTA is defined by the issue of a consignment note, write on the invoice that the vehicle was rented with operator and no consignment note was issued.
Overtime, night halts and tolls
Extra hours and driver halts are part of the rental. Tolls paid for the hirer can be shown as reimbursements with receipts.
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)
The services rate notification treats a goods transport agency as a person who issues a consignment note. A truck owner hiring out a vehicle with driver to a company that decides where it goes and what it carries is renting a goods carriage with operator. The 56th GST Council moved this supply, where fuel cost is included in the consideration, from 12% to 5% with credit of input services in the same line of business, with 18% with full credit as the alternative. The explanatory notes describe rental of trucks with operators under 996601.
Choosing between 5% and 18%
At 5% the truck owner can only claim credit on input services in the same line, such as trucks hired in from other owners. It cannot claim the 18% GST on a new truck, tyres or servicing. At 18% all eligible credit is available, and the hirer, if registered, claims the 18% as credit. Fleet owners with heavy capital spending often find 18% better; owner-drivers with old trucks may prefer 5%. Apply the chosen rate consistently to similar contracts.
Hire memos within the GTA chain
Brokers and GTAs regularly hire trucks from owners to carry loads booked by them. The owner's hire memo to the GTA is renting of goods carriage, not GTA service, because the GTA issues the consignment note to the consignor. An exemption for giving a vehicle on hire to a GTA has historically applied for such hire. Owners should check the current exemption notification entry before charging tax on hire memos to GTAs.
E-way bills and the hirer
The goods carried in a rented truck belong to the hirer or its customers. The hirer generates the e-way bill with the rented truck's number in Part B. The truck owner's rental invoice does not replace the goods documents, and the driver must carry the hirer's invoice or delivery challan along with the e-way bill.
Dedicated fleet contracts with corporates
Manufacturers and e-commerce companies often take trucks on dedicated monthly contracts with a fixed kilometre allowance, where the trucks carry only their goods. These are classic rental arrangements: the client schedules the trips, and the owner provides vehicle, driver and fuel. The monthly invoice should carry the contract number, list each vehicle with its fixed charge and extra kilometres, and attach the logbook summary. Penalties for vehicle breakdown or absence deducted by the client reduce the value of supply and should be documented through credit notes.
Common billing mistakes
✕Calling truck rental GTA freight and charging 5% under reverse charge when no consignment note was issued.
✕Charging 5% and also claiming credit on the purchase of new trucks and tyres.
✕Mixing per-consignment freight and monthly hire on one invoice with one rate and one SAC.
✕Not stating whether fuel is included, which decides which rate entry applies.
Truck Rental GST invoice: FAQ
What is the GST rate on truck hire with driver?
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Renting a goods carriage with operator where fuel cost is included is taxed at 5% with credit of same-line input services, or 18% with full credit, from 22 September 2025. Earlier the higher option was 12%.
Is truck rental covered by reverse charge?
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Reverse charge for transport of goods is linked to GTA services. Renting a goods carriage with operator is a separate entry and generally taxed by the supplier, so check whether any reverse charge notification applies to your case before omitting tax.
What SAC should I use for lorry hire?
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Rental services of road vehicles including trucks with operator fall under SAC 996601 according to the explanatory notes.
Is hire of a truck to a GTA taxable?
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Giving a means of transportation of goods on hire to a GTA has been covered by an exemption in the services exemption notification. Check the current entry, as hire memos to GTAs are common in this trade.
Can a truck rental bill include tolls?
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Tolls paid on the hirer's behalf and recovered at actual cost can be shown as pure agent reimbursements with receipts. If tolls are included in a fixed monthly charge, they become part of the rental value.