Quick answer: An Indian garage must register for GST once annual turnover crosses ₹20 lakh (₹10 lakh in special-category states), or immediately if it makes any inter-state supply. Garage labour is billed under SAC 9987 and parts under their own HSN codes, with CGST + SGST for customers in your state and IGST for customers outside it.
Key takeaways
- GST registration is mandatory above ₹20 lakh turnover (₹10 lakh in special-category states), or from day one for any inter-state supply.
- Labour and repair services fall under SAC 9987; spare parts carry their own HSN codes such as 8708 for motor-vehicle parts.
- Customers in your own state are billed CGST + SGST; customers outside your state are billed IGST at the combined rate.
- A compliant garage invoice needs a unique serial number, your GSTIN, customer details, HSN/SAC per line, the tax split shown separately, and the total in words.
- Voluntary registration below the threshold is often worth it — corporate and insurance-cashless customers usually require a GST invoice.
If you own a garage in India, GST is not optional. It decides how you bill customers, what records you keep, and how much tax you pay every month. The good news: the rules are simpler than most garage owners think once you break them down.
This guide covers the essentials — who needs to register, how the tax split works, the correct codes for garage services, and the invoicing rules that keep your accountant (and the GST department) happy.
Do you need to register for GST?
A garage must register for GST if its annual turnover crosses ₹20 lakh in most states (₹10 lakh in special category states). If you supply goods and services inter-state, you must register regardless of turnover.
Even if you are below the threshold, voluntary registration is worth considering. Corporate customers and insurance-cashless work almost always require a GST invoice.
Understanding CGST, SGST and IGST
GST is split based on where your customer is located:
- Intra-state sale (customer in the same state): split into CGST + SGST — half goes to the Centre, half to the State.
- Inter-state sale (customer in a different state): charged as IGST — the full amount goes to the Centre and is later apportioned.
Most garage work falls under 18% GST. For an ₹1,000 service within your state, you charge ₹90 CGST + ₹90 SGST. For a customer from another state, you charge ₹180 IGST instead.
HSN and SAC codes for garages
GST uses two code systems:
- HSN (Harmonized System of Nomenclature) — for goods, e.g. parts, oil, consumables.
- SAC (Services Accounting Code) — for services, e.g. labour, servicing, repair work.
Common codes for garages:
- SAC 998729 — Maintenance and repair services of motor vehicles.
- HSN 8708 — Parts and accessories of motor vehicles.
- HSN 2710 — Lubricating oils and greases.
- HSN 4011 — Tyres, new, of rubber.
Always check your specific part or service code with your CA — codes occasionally update.
What a GST-compliant garage invoice must include
Every GST invoice you issue must have:
- Your garage name, address and GSTIN
- Customer name, address and GSTIN (if registered)
- A unique invoice number and invoice date
- Vehicle details (number, make, model) — good practice even if not mandatory
- Line items with HSN/SAC codes, quantity, rate and value
- CGST + SGST (or IGST) split shown separately
- Total payable in words and figures
- Place of supply (important for IGST classification)
Missing any of these can cause Input Tax Credit (ITC) issues for your customer — and they will stop coming back.
Mechanic Mate generates fully GST-compliant invoices automatically. CGST/SGST/IGST is split based on the customer's state, HSN/SAC codes are pre-filled, and GSTINs are validated as you type.
Filing returns: the monthly rhythm
Most garages file GSTR-1 (outward supplies) and GSTR-3B (summary return) monthly. Small businesses with turnover up to ₹5 crore can opt for the QRMP scheme — quarterly returns with monthly tax payment. Talk to your CA about which works better for your cash flow.
Common GST mistakes garages make
- Charging the wrong tax split (CGST/SGST for an out-of-state customer)
- Using a round invoice number like 1, 2, 3 — use a clear series like INV-2526-0001
- Missing the customer's GSTIN when they are a registered business
- Skipping HSN/SAC codes on small bills
- Not reconciling sales with GSTR-2B before claiming ITC
The simple path forward
You do not need to memorize every GST rule. You need a billing system that handles the rules for you. A good garage management app enforces the correct tax split, validates GSTINs, uses the right HSN/SAC codes, and exports the data your accountant needs.
Run GST on autopilot
Mechanic Mate creates GST-compliant invoices automatically — no more tax-split mistakes.
Get it on Google PlayDisclaimer: This article is general guidance, not tax advice. Always confirm current rules with a qualified Chartered Accountant for your specific situation.
Frequently asked questions
Do garage owners need to register for GST in India?
A garage must register for GST if annual turnover crosses ₹20 lakh in most states (₹10 lakh in special category states). Inter-state supply requires GST registration regardless of turnover.
What GST rate applies to garage services in India?
Most garage work falls under 18% GST. For intra-state customers it splits as 9% CGST + 9% SGST. For inter-state customers, the full 18% is charged as IGST.
What SAC code should garages use for services?
SAC 998729 covers maintenance and repair services of motor vehicles in India.
What HSN codes do garages use for auto parts?
Common HSN codes: 8708 (parts and accessories of motor vehicles), 2710 (lubricating oils and greases), 4011 (tyres). Confirm specific codes with your CA.
How often do garages need to file GST returns?
Most garages file GSTR-1 (outward supplies) and GSTR-3B (summary return) monthly. Businesses with turnover up to ₹5 crore can opt for the QRMP scheme (quarterly returns with monthly tax payment).