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GST on repair and service bills

A repair bill usually has two kinds of lines: parts (goods) and labour (a service). They are often taxed differently.

Labour

Repair and maintenance work is a service under SAC 9987, taxed at 18%. Mark such lines as "Labour / service"; the maker fills 9987 as the SAC.

Parts

Parts are goods, taxed at the rate for their HSN code. From 22 September 2025 most goods are at 5% or 18%, with 40% for a short list. Use the HSN and rate printed on your supplier’s bill for each part.

When parts and labour are shown separately on the bill, each is taxed at its own rate. CBIC explained this for motor vehicle repairs and insurance claims in Circular 47/21/2018-GST (8 June 2018). Show parts and labour on separate lines, as the maker does.

Worked example

Total ₹2,006, shown as CGST ₹153 + SGST ₹153 within your state. (Rates are an example; check each part’s HSN.)

Insurance repairs

For a vehicle repaired under an insurance claim, the bill is still made to the vehicle owner (or as the insurer requires). The customer pays their share; the insurer pays the rest. Keep the surveyor’s approval with the workshop copy.

Small shops

• Not registered: no GST may be charged. Choose "Invoice (not GST registered)".
• Composition: choose "Bill of supply"; no GST is shown, and the required words print.