The SAC code for automotive repair services is 998714, and the general GST rate is 18% in India. This code covers maintenance, servicing and repairs of cars, motorcycles, trucks, buses and other motor vehicles, including mechanical, electrical and body repairs.
Automotive repair services are classified under SAC (Services Accounting Code), not HSN, because they involve providing services rather than supplying goods.
What Is the SAC Code for Automotive Repair Services?
Automotive repair services fall under SAC 998714 – Maintenance and Repair Services of Transport Machinery and Equipment.
| Particular | Details |
|---|---|
| Service | Automotive repair and maintenance |
| SAC code | 998714 |
| Official description | Maintenance and repair services of transport machinery and equipment |
| SAC group | 99871 |
| SAC heading | 9987 |
| General GST rate | 18% |
| CGST + SGST | 9% + 9% |
| IGST | 18% |
SAC 998714 covers routine vehicle maintenance, mechanical repairs, electrical repairs, bodywork and related automotive servicing activities.
The official GST classification and explanatory notes identify motor vehicle maintenance and repair services under this code.
Services Covered Under SAC 998714
SAC 998714 includes different types of automotive maintenance and repair services.
| Automotive repair service | Examples | SAC code | GST rate |
|---|---|---|---|
| Car repair services | Engine repairs, brake repairs and mechanical servicing | 998714 | 18% |
| Two-wheeler repair services | Motorcycle and scooter maintenance | 998714 | 18% |
| Commercial vehicle repairs | Truck, van and bus repairs | 998714 | 18% |
| Engine maintenance | Engine overhauling, tuning and adjustments | 998714 | 18% |
| Electrical repairs | Wiring, charging systems and vehicle electrical repairs | 998714 | 18% |
| Vehicle body repairs | Denting, painting and collision repairs | 998714 | 18% |
| Tyre and wheel services | Puncture repairs, wheel balancing and alignment | 998714 | 18% |
| Car washing and polishing | Vehicle cleaning, polishing and waxing | 998714 | 18% |
| Preventive maintenance | Scheduled inspections and routine servicing | 998714 | 18% |
These activities generally fall under SAC 998714 when the principal supply is vehicle maintenance or repair.
GST Rate on Automotive Repair Services in India
Automotive repair and maintenance services classified under SAC 998714 generally attract 18% GST.
For intra-state supplies, the tax is divided into:
- 9% CGST
- 9% SGST
For inter-state supplies, 18% IGST generally applies.
The GST rate for ordinary motor vehicle repairs is supported by the CBIC rate schedule under heading 9987.
GST on Car and Two-Wheeler Repair Services
Car and two-wheeler repair services generally attract 18% GST.
This includes engine servicing, brake repairs, clutch repairs, suspension maintenance and electrical troubleshooting.
For example, when a garage charges a customer for repairing a car’s braking system, the repair service generally falls under SAC 998714.
GST on Vehicle Denting and Painting
Denting, painting, collision repair and other automotive bodywork generally fall under SAC 998714.
The general GST rate is 18% when these activities are supplied as taxable automotive repair services.
However, the treatment of separately supplied spare parts or materials must be determined from the invoice and contractual arrangement.
GST on Vehicle Washing and Maintenance
Car washing, polishing, waxing and routine vehicle maintenance are included in the official explanatory notes for SAC 998714.
These services generally attract 18% GST when supplied as taxable vehicle maintenance services.
GST on Automotive Repair Services with Spare Parts
Vehicle repair invoices often include both labour charges and replacement parts.
The GST treatment depends on whether the garage supplies a single composite repair service or separately supplies goods and services.
| Invoice arrangement | GST treatment |
|---|---|
| Repair service with incidental spare parts supplied as one composite service | Generally 18%, where repair is the principal supply |
| Labour or repair service charged separately | Generally 18% |
| Spare parts supplied separately | Applicable GST rate based on the part’s HSN classification |
| Separate taxable supplies of parts and labour | GST determined for each supply |
For example, a garage may separately invoice a replacement battery and installation labour. The battery’s GST treatment depends on its applicable HSN classification, while the labour service generally attracts 18% GST.
Businesses should not assume that every spare part automatically attracts 18% GST simply because it is used during vehicle repair.
The CBIC has issued guidance on the treatment of car servicing involving separately charged goods and services. The correct classification depends on the actual supply arrangement.
GST Calculation Example for Automotive Repair Services
Suppose a garage charges ₹5,000 for vehicle repair labour and the applicable GST rate is 18%.
| Particular | Amount |
|---|---|
| Automotive repair charges | ₹5,000 |
| GST at 18% | ₹900 |
| Total invoice value | ₹5,900 |
For an intra-state transaction, GST consists of ₹450 CGST and ₹450 SGST.
For an inter-state transaction, ₹900 IGST generally applies, subject to place-of-supply provisions.
This example covers repair services only. Separately supplied spare parts should be assessed under their applicable HSN codes and GST rates.
Difference Between Automotive Repair and Related Services
Not every vehicle-related transaction falls under SAC 998714.
| Service | SAC code | Classification |
|---|---|---|
| Automotive repair and maintenance | 998714 | Maintenance and repair of transport machinery and equipment |
| Motor vehicle insurance | 997134 | Motor vehicle insurance services |
| Road transportation of goods | 996511 | Road goods transport services |
| Motor vehicle rental without operator | 997311 | Rental or leasing of transport equipment without operator |
For example, repairing a truck generally falls under SAC 998714, while transporting goods using the truck falls under SAC 996511.
Similarly, insurance coverage for the vehicle is a separate service classified under SAC 997134.
Businesses can also refer to the motor vehicle insurance SAC code and GST rate when dealing with insurance-related transactions.
Is GST Applicable on Automotive Repairs Under Warranty?
Warranty repairs require separate consideration under GST.
When a manufacturer or authorised service centre replaces parts or provides repairs to a customer without additional consideration under an existing warranty, GST is generally not charged again to the customer for that covered warranty service.
However, if an authorised workshop charges the manufacturer for performing warranty repairs, that supply may be taxable under the applicable GST provisions.
Any additional repair charges paid by the customer outside the warranty coverage must be assessed separately.
For garages handling warranty repairs, maintaining clear records of the original warranty, replacement parts and amounts charged is important.
How to Identify the Correct SAC Code for Automotive Repair Services
Businesses should follow these steps when classifying automotive repair services:
- Identify the service: Determine whether the work involves vehicle maintenance, mechanical repairs, body repairs or electrical servicing.
- Select the SAC code: For qualifying motor vehicle repair and maintenance services, use SAC 998714.
- Separate goods and services where applicable: Identify spare parts supplied separately from labour and repair services.
- Apply the correct GST rate: Automotive repair services generally attract 18% GST. Separately supplied parts may have different rates.
- Maintain proper invoices: Record the service description, SAC code, taxable value, applicable GST and customer details.
Businesses can verify service classifications using the official GST Portal’s HSN/SAC search facility.
FAQs About Automotive Repair Services SAC Codes
What is the SAC code for automotive repair services?
The SAC code for automotive repair services is 998714. It covers maintenance and repair of cars, motorcycles, trucks, buses and other transport machinery.
What is the GST rate on car repair services?
Car repair services generally attract 18% GST in India, including engine servicing, mechanical repairs, electrical repairs and vehicle bodywork.
What is the SAC code for bike repair services?
Motorcycle and scooter repair services generally fall under SAC 998714, with a GST rate of 18%.
Are spare parts and labour charges taxed separately?
When spare parts and labour are supplied and charged separately, GST generally applies to each supply at its respective rate. The actual treatment depends on the transaction and contractual arrangement.
Is GST charged on car washing and polishing?
Car washing, polishing and routine vehicle maintenance services generally fall under SAC 998714 and attract 18% GST when supplied as taxable services.
Simplify Garage Billing with myBillBook
Automobile workshops and service centres need accurate invoices to record repair charges, spare parts, applicable GST and customer payments.
With myBillBook’s automobile shop billing software, garages can create GST invoices, record labour and spare parts separately, manage service jobs and track payments.
Businesses can also explore auto repair invoicing software to organise workshop billing and maintain service records.
Using the correct SAC code helps garages maintain accurate invoices for automotive repair services.
