GST on Vehicle hire and rental (with driver)

GST on vehicle hire and rental (with driver), 26 October 2026: 5% / 18%. In some cases the receiver pays the GST under reverse charge (see who pays). The exact rate depends on the entry that fits the supply — read the entries below, each with its notification.

Within a state the GST is split equally: for example 18% = 9% CGST + 9% SGST; between states it is charged as IGST.

GST rate today

Entries in force on 26 October 2026:

• 18% — If you rent out a passenger vehicle with fuel included and do not meet the 5% no-input-tax-credit condition, GST is 18%. (15/2025-CT(R), entry 10(i), from 22 September 2025)
• 18% — If you rent out a goods vehicle with fuel included and do not meet the 5% no-input-tax-credit condition, GST is 18%. (15/2025-CT(R), entry 10(ia), from 22 September 2025)
• 18% — Other renting of transport vehicles with an operator, not covered by the items above, has GST at 18%. (3/2022-CT(R), entry 10(iii), from 18 July 2022)
• 5% — If you rent out a passenger vehicle with fuel included, GST is 5%. This rate applies only if you take no input tax credit, except limited credit on vehicles hired from others in the same trade. (15/2025-CT(R), entry 10(i), from 22 September 2025)
• 5% — If you rent out a goods vehicle with fuel included and take no input tax credit except limited credit on hires from others in the same trade, GST is 5%. (15/2025-CT(R), entry 10(ia), from 22 September 2025)
• 5% — If you give a ship or vessel on time charter to carry goods and take no input tax credit on goods other than ships and vessels, GST is 5%. (1/2018-CT(R), entry 10(ii), from 25 January 2018)

No GST (exemptions in force)

• Nil — Hiring out a 12+ seat bus to state transport, or an electric one to a local authority, has no GST. The same applies to hiring out a goods vehicle to a transport company, or school buses up to higher secondary. (13/2019-CT(R), entry 22, from 1 August 2019)

Who pays the GST (reverse charge)

Reverse-charge entries in force on 26 October 2026 (Notification 13/2017-Central Tax (Rate) and its amendments): the receiver pays the GST instead of the supplier.

• If a non-company rents a passenger vehicle with fuel included to a company and does not bill 6% central tax, the company pays the GST, not the owner. (29/2019-CT(R), entry 15, from 31 December 2019)

Period by period since 1 July 2017

Every period between two changes in the notifications, with each rate entry in force for this service in that period. The table further down lists each entry once, with its start and end.

1 July 2017 – 21 August 2017

• 18% — Other renting of transport vehicles, with or without an operator, not covered by the items above, has GST at 18%. (11/2017-CT(R), entry 10(ii), from 1 July 2017)
• 5% — If you rent out a cab with fuel included in the charge and take no input tax credit (credit for GST paid on purchases), GST is 5%. (11/2017-CT(R), entry 10(i), from 1 July 2017)
• Nil — Hiring out a vehicle for over 12 passengers to a state transport undertaking, or a goods vehicle to a transport company, has no GST. (12/2017-CT(R), entry 22, from 1 July 2017)

22 August 2017 – 12 October 2017

• 18% — Other renting of transport vehicles, with or without an operator, not covered by the items above, has GST at 18%. (11/2017-CT(R), entry 10(ii), from 1 July 2017)
• 12% — When you rent out a motor cab with fuel cost included and do take input tax credit, GST is 12%. (20/2017-CT(R), entry 10(i), from 22 August 2017)
• 5% — When you rent out a motor cab with fuel cost included and take no input tax credit, GST is 5%. (20/2017-CT(R), entry 10(i), from 22 August 2017)
• Nil — Hiring out a vehicle for over 12 passengers to a state transport undertaking, or a goods vehicle to a transport company, has no GST. (12/2017-CT(R), entry 22, from 1 July 2017)

13 October 2017 – 24 January 2018

• 18% — Other renting of transport vehicles, with or without an operator, not covered by the items above, has GST at 18%. (11/2017-CT(R), entry 10(ii), from 1 July 2017)
• 12% — If you rent out a passenger vehicle with fuel included, but do not meet the 5% condition, for example you take full input tax credit. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 5% — If you rent out a passenger vehicle with fuel cost included in the charge, and take no input tax credit except on hiring from other vehicle operators, GST is 5%. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• Nil — Hiring out a vehicle for over 12 passengers to a state transport undertaking, or a goods vehicle to a transport company, has no GST. (12/2017-CT(R), entry 22, from 1 July 2017)

25 January 2018 – 31 July 2019

• 18% — Other renting of transport vehicles, with or without an operator, not covered by the items above, has GST at 18%. (1/2018-CT(R), entry 10(iii), from 25 January 2018)
• 12% — If you rent out a passenger vehicle with fuel included, but do not meet the 5% condition, for example you take full input tax credit. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 5% — If you rent out a passenger vehicle with fuel cost included in the charge, and take no input tax credit except on hiring from other vehicle operators, GST is 5%. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 5% — If you give a ship or vessel on time charter to carry goods and take no input tax credit on goods other than ships and vessels, GST is 5%. (1/2018-CT(R), entry 10(ii), from 25 January 2018)
• Nil — There is no GST when you hire out a bus (over 12 passengers) to a state transport undertaking. The same applies to a goods vehicle hired to a transport company, or a vehicle for school transport up to class 12. (2/2018-CT(R), entry 22, from 25 January 2018)

1 August 2019 – 30 September 2019

• 18% — Other renting of transport vehicles, with or without an operator, not covered by the items above, has GST at 18%. (1/2018-CT(R), entry 10(iii), from 25 January 2018)
• 12% — If you rent out a passenger vehicle with fuel included, but do not meet the 5% condition, for example you take full input tax credit. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 5% — If you rent out a passenger vehicle with fuel cost included in the charge, and take no input tax credit except on hiring from other vehicle operators, GST is 5%. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 5% — If you give a ship or vessel on time charter to carry goods and take no input tax credit on goods other than ships and vessels, GST is 5%. (1/2018-CT(R), entry 10(ii), from 25 January 2018)
• Nil — Hiring out a 12+ seat bus to state transport, or an electric one to a local authority, has no GST. The same applies to hiring out a goods vehicle to a transport company, or school buses up to higher secondary. (13/2019-CT(R), entry 22, from 1 August 2019)

1 October 2019 – 17 July 2022

• 18% — Other renting of transport vehicles with an operator, not covered by the items above, has GST at 18%. (20/2019-CT(R), entry 10(iii), from 1 October 2019)
• 12% — If you rent out a passenger vehicle with fuel included, but do not meet the 5% condition, for example you take full input tax credit. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 5% — If you rent out a passenger vehicle with fuel cost included in the charge, and take no input tax credit except on hiring from other vehicle operators, GST is 5%. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 5% — If you give a ship or vessel on time charter to carry goods and take no input tax credit on goods other than ships and vessels, GST is 5%. (1/2018-CT(R), entry 10(ii), from 25 January 2018)
• Nil — Hiring out a 12+ seat bus to state transport, or an electric one to a local authority, has no GST. The same applies to hiring out a goods vehicle to a transport company, or school buses up to higher secondary. (13/2019-CT(R), entry 22, from 1 August 2019)

18 July 2022 – 19 October 2023

• 18% — Other renting of transport vehicles with an operator, not covered by the items above, has GST at 18%. (3/2022-CT(R), entry 10(iii), from 18 July 2022)
• 12% — If you rent out a passenger vehicle with fuel included, but do not meet the 5% condition, for example you take full input tax credit. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 12% — When you rent out a goods carriage with fuel cost included, GST is 12%. (3/2022-CT(R), entry 10(ia), from 18 July 2022)
• 5% — If you rent out a passenger vehicle with fuel cost included in the charge, and take no input tax credit except on hiring from other vehicle operators, GST is 5%. (31/2017-CT(R), entry 10(i), from 13 October 2017)
• 5% — If you give a ship or vessel on time charter to carry goods and take no input tax credit on goods other than ships and vessels, GST is 5%. (1/2018-CT(R), entry 10(ii), from 25 January 2018)
• Nil — Hiring out a 12+ seat bus to state transport, or an electric one to a local authority, has no GST. The same applies to hiring out a goods vehicle to a transport company, or school buses up to higher secondary. (13/2019-CT(R), entry 22, from 1 August 2019)

20 October 2023 – 21 September 2025

• 18% — Other renting of transport vehicles with an operator, not covered by the items above, has GST at 18%. (3/2022-CT(R), entry 10(iii), from 18 July 2022)
• 12% — If you rent out a passenger vehicle with fuel included and do not meet the 5% no-input-tax-credit condition, GST is 12%. (12/2023-CT(R), entry 10(i), from 20 October 2023)
• 12% — When you rent out a goods carriage with fuel cost included, GST is 12%. (3/2022-CT(R), entry 10(ia), from 18 July 2022)
• 5% — If you rent out a passenger vehicle with fuel included, GST is 5%. This rate applies only if you take no input tax credit, except limited credit on vehicles hired from others in the same trade. (12/2023-CT(R), entry 10(i), from 20 October 2023)
• 5% — If you give a ship or vessel on time charter to carry goods and take no input tax credit on goods other than ships and vessels, GST is 5%. (1/2018-CT(R), entry 10(ii), from 25 January 2018)
• Nil — Hiring out a 12+ seat bus to state transport, or an electric one to a local authority, has no GST. The same applies to hiring out a goods vehicle to a transport company, or school buses up to higher secondary. (13/2019-CT(R), entry 22, from 1 August 2019)

22 September 2025 – in force

• 18% — If you rent out a passenger vehicle with fuel included and do not meet the 5% no-input-tax-credit condition, GST is 18%. (15/2025-CT(R), entry 10(i), from 22 September 2025)
• 18% — If you rent out a goods vehicle with fuel included and do not meet the 5% no-input-tax-credit condition, GST is 18%. (15/2025-CT(R), entry 10(ia), from 22 September 2025)
• 18% — Other renting of transport vehicles with an operator, not covered by the items above, has GST at 18%. (3/2022-CT(R), entry 10(iii), from 18 July 2022)
• 5% — If you rent out a passenger vehicle with fuel included, GST is 5%. This rate applies only if you take no input tax credit, except limited credit on vehicles hired from others in the same trade. (15/2025-CT(R), entry 10(i), from 22 September 2025)
• 5% — If you rent out a goods vehicle with fuel included and take no input tax credit except limited credit on hires from others in the same trade, GST is 5%. (15/2025-CT(R), entry 10(ia), from 22 September 2025)
• 5% — If you give a ship or vessel on time charter to carry goods and take no input tax credit on goods other than ships and vessels, GST is 5%. (1/2018-CT(R), entry 10(ii), from 25 January 2018)
• Nil — Hiring out a 12+ seat bus to state transport, or an electric one to a local authority, has no GST. The same applies to hiring out a goods vehicle to a transport company, or school buses up to higher secondary. (13/2019-CT(R), entry 22, from 1 August 2019)

SAC codes under 9966

• 996601 Rental services of road vehicles including buses, coaches, cars, trucks and other motor vehicles, operator
• 996602 Rental services of water vessels including passenger vessels, freight vessels and the like operator
• 996603 Rental services of aircraft including passenger aircrafts, freight aircrafts and the like operator
• 996604 Rental services of passenger vessels with operator
• 996605 Rental services of goods vessels with operator
• 996606 Rental service of passenger aircraft with operator
• 996607 Rental service of goods aircraft with operator
• 996609 Rental services of other transport vehicles nowhere else classified operator

Full rate history

Reverse-charge history

Check a code or a date

• Codes under this service and today's rate per code: SAC code page.
• Any other item or service: GST Rate Finder; tax on an amount: GST calculator.
• How to read the notification yourself: verify a GST rate. The rate on any past invoice date is in the free BooksOn HSN app.

GST on other services

• All services
• Transport charges (goods transport, GTA, freight)
• Cab, taxi and passenger transport
• Rent (rental charges for house, shop, office, land)
• Security services (security guards)
• Manpower supply and labour charges
• Legal charges (advocate and lawyer fees)
• Consultancy and professional fees
• Courier charges
• Hotel room charges
• Restaurant bills, food and catering
• Construction and works contract
• Repair and maintenance charges
• Job work charges
• Insurance premium
• Bank charges and loan processing fees
• Advertising charges
• Event management, pandal and shamiana
• Commission and brokerage

From the BooksOn HSN dataset (version 7), compiled from CBIC notifications since 1 July 2017, checked on 26 October 2026. Reference only: confirm the entry and its conditions in the notification before invoicing.