luckpandaQuick answer
Car rental bill format: what it is
A tax invoice is the document a GST-registered seller issues to charge for goods or services; it fixes the taxable value and the CGST, SGST or IGST, and it is what the buyer claims input tax credit on. Package hire by day or month, extra km and hours, GST.
Last reviewed:
On this page
Example: a filled invoice
- The title says what the document is: an invoice.
- A unique number from a continuous series, allocated when you issue it.
- Your name, address and GSTIN.
- Who it is for.
- Each line: description, HSN/SAC, quantity, rate and taxable value.
- GST split by component: CGST and SGST in the same state, IGST across states.
- The total in the document's currency and format.
Worked example: the numbers behind the invoice above
| Item | Qty | Rate | Taxable value | Tax |
|---|---|---|---|---|
| MPV with driver, KA 19 XX 0000, 8 h / 80 km package, 1 to 5 October, per day | 5 | ₹3,200.00 | ₹16,000.00 | ₹800.00 |
| Extra km: opening 48,450, closing 48,914 = 464 km against 400 included | 64 | ₹18.00 | ₹1,152.00 | ₹57.60 |
| Extra hours beyond package | 3 | ₹250.00 | ₹750.00 | ₹37.50 |
| Driver night allowance, 2 and 4 October | 2 | ₹300.00 | ₹600.00 | ₹30.00 |
| Tolls and parking at actuals (receipts attached) | 1 | ₹860.00 | ₹860.00 | ₹0.00 |
| Taxable value | ₹19,362.00 | |||
| CGST 2.5% | ₹462.55 | |||
| SGST 2.5% | ₹462.55 | |||
| Total | ₹20,287.10 | |||
GST is worked out per line and split into CGST and SGST (same state) or IGST (other state) from the two GSTINs.
How to fill in the car rental bill format
- Enter the rental company name, address and GSTIN.
- Add the customer, with the company GSTIN for corporate hires.
- Bill the package days, then extra km, extra hours and driver allowances, quoting opening and closing km.
- Add tolls and parking at actuals, check the GST rate, then save.
Car rental bill format
- Rental company name, address, GSTIN and phone
- Bill number and date; contract or booking number
- Customer name and GSTIN; name of the person who used the car
- Car model and registration number; driver name for chauffeur hires
- Hire dates, opening and closing km, start and end times
- Package: days or months, with the km and hours included
- Extra km and extra hours at the agreed rates
- Driver night and outstation allowances
- For self-drive, a refuelling charge if the car comes back short
- Tolls, parking and state permits at actuals
- GST rate and amount; deposit held and its refund
Chauffeur-driven or self-drive
Rates shown are those in force from 22 September 2025; confirm them against current notifications before you bill.
| Chauffeur-driven | Self-drive | |
|---|---|---|
| Usually priced by | Package of hours and km per day, or per month | Per day or per hour, with a km limit or unlimited km |
| Fuel | Included in the rate | Customer refuels, or pays a refuelling charge |
| Deposit | Rare for corporate accounts | Usual, refunded after return |
| GST | 5% without credit, or a higher rate with credit | Same rate as the car: 18% or 40% |
Worked example
A company hires an MPV with driver for 5 days on an 8 hours / 80 km package at ₹3,200 a day (₹16,000). The car runs 464 km against 400 included, so 64 extra km at ₹18 (₹1,152), plus 3 extra hours at ₹250 (₹750) and 2 nights of driver allowance at ₹300 (₹600). Taxable value ₹18,502, GST at 5% ₹925.10, plus ₹860 of tolls and parking at actuals: ₹20,287.10.
What to put on an invoice, field by field
| Field | What to enter |
|---|---|
| Document title | Say exactly what it is: "Tax invoice". The title tells the buyer and the tax authority how to treat it. |
| Number and date | A unique number in a continuous series (at most 16 characters, unique for the financial year) and the issue date. LuckPanda allocates the number when you issue. |
| Your business | Name, address and GSTIN (state code is the first two digits) |
| Customer | Name, address and GSTIN if registered; for unregistered buyers, name, address and state |
| Lines | Description, quantity, unit and rate, with the HSN code for goods or SAC for services. Each line carries its own tax rate. |
| Tax | GST rate per line. Same state: CGST and SGST, half each. Another state or export: IGST. |
| Totals | Taxable value, tax by component and the total, in the document currency. Amounts in words are customary in India. |
| Terms | Due date, bank or payment details and late-payment terms. |
India GST rules for an invoice
- Contents are set by rule 46 of the CGST Rules: supplier name, address and GSTIN; a consecutive serial number of up to 16 characters, unique for the financial year; date; recipient details and GSTIN if registered; HSN or SAC; description, quantity, taxable value; rate and amount of CGST, SGST/UTGST or IGST; place of supply for inter-state supplies; a reverse-charge statement where it applies; and a signature.
- HSN digits: businesses with aggregate turnover up to ₹5 crore show 4 digits on B2B invoices; above ₹5 crore, 6 digits on every invoice.
- Timing: for goods, on or before removal or delivery; for services, within 30 days of supply.
- E-invoicing (an IRN from the Invoice Registration Portal) applies to B2B invoices of businesses whose aggregate turnover crossed ₹5 crore in any year since 2017-18.
- Unregistered or composition sellers do not issue tax invoices: they issue a bill of supply and charge no GST.
Mistakes to avoid
- Editing or deleting an issued invoice instead of issuing a credit note.
- Gaps or duplicates in the number series.
- Charging the wrong tax type (for India: IGST on an intra-state sale, or CGST and SGST across states).
- Leaving out the due date and payment details, which is the commonest reason invoices are paid late.
- Rounding each line's tax differently from the total; LuckPanda computes tax per line and keeps the components adding up.
Invoice vs other sales documents
| Document | When | Asks for payment | Tax document | In the books |
|---|---|---|---|---|
| Quotation / estimate | Before the order | No | No | No |
| Proforma invoice | After the order, before supply | Advance only | No | No |
| Invoice / tax invoice | On supply | Yes | Yes | Yes: sale and receivable |
| Receipt | When paid | No, confirms payment | No (receipt voucher for advances in India) | Yes: payment |
| Credit note | After an invoice, to reduce it | No, reduces what is owed | Yes | Yes: reverses part of the sale |
Questions people ask
What GST applies to a car hired with a driver?
Renting a cab with a driver is commonly taxed at 5% without input tax credit for the operator; an operator that takes credit charges a higher rate. Check the current notification for the option you have chosen.
What GST applies to a self-drive car?
Self-drive rental is renting of goods without an operator, taxed at the same rate as the car itself. Under the rates in force from 22 September 2025, that is 18% for small cars and 40% for larger cars and SUVs.
Is the security deposit taxable?
A refundable deposit is not part of the rental value while it is held. If you keep part of it for damage, fuel or late return, that amount becomes a charge and goes on the bill with GST.
What does a monthly corporate rental need?
A contract that fixes the km and hours per month, the extra rates and who pays for fuel. Bill against the contract number and attach the duty slips signed by the user for each day.