Key takeaways
- Repair and maintenance services are generally taxed at 18% (SAC 9987); parts follow their own HSN rates.
- GST 2.0 (from 22 September 2025) moved most goods into 5% and 18% slabs. ACs, large TVs and dishwashers fell from 28% to 18%.
- Issue the right document: tax invoice, bill of supply, credit or debit note, delivery challan.
- E-invoicing applies above ₹5 crore turnover; above ₹10 crore, report within 30 days.
GST basics for repair and service businesses
- Registration: required once aggregate turnover exceeds ₹20 lakh (₹10 lakh in special category states). Parts sales count towards turnover.
- Composition scheme: service providers can opt in up to ₹50 lakh turnover at 6%, but can’t charge GST separately or claim input tax credit. They issue bills of supply.
- Services rate: most repair, maintenance and installation services fall under SAC 9987 at 18%.
- Goods rate: each part or product carries its own HSN code and rate.
- Place of supply: same state means CGST + SGST; a different state means IGST.
Which document, when
| Document | Use it when |
|---|---|
| Quotation / estimate | Before work: the customer approves the cost (not a tax document) |
| Tax invoice | You’re registered and charging GST on parts and/or service |
| Bill of supply | You’re on the composition scheme, or the supply is exempt |
| Credit note | Reducing an issued invoice: return, discount or correction |
| Debit note | Increasing an issued invoice: additional charges |
| Delivery challan | Moving goods without a sale: sending a unit to the brand for warranty repair, or returning it |
| Payment receipt | Acknowledging an advance or a payment against an invoice |
What a GST tax invoice must show
- Your name, address and GSTIN.
- A unique, consecutive invoice number (up to 16 characters) and the date.
- The customer’s name and address, and GSTIN if they’re registered.
- HSN code for goods and SAC for services, at least 4 digits up to ₹5 crore turnover and 6 digits above.
- Description, quantity, unit, value, discount and taxable value.
- GST rate and amount, split as CGST and SGST, or IGST.
- Place of supply for inter-state supplies.
- Signature (or digital signature) of the supplier.
GST 2.0: what changed in September 2025
After the 56th GST Council meeting, the rate structure was rationalised from 22 September 2025. Most goods now sit in the 5% or 18% slabs, with a 40% rate for a small set of luxury and sin goods. For service businesses the headline change is on durables: air conditioners, large TVs and dishwashers moved from 28% to 18%. Repair and maintenance services broadly stayed at 18%. Make sure your billing software has the updated rates on every item.
E-invoicing rules also tightened in 2025. E-invoicing is mandatory above ₹5 crore turnover, and from 1 April 2025 businesses at ₹10 crore or more must report each e-invoice within 30 days, or the portal rejects it.
What GST billing software should do for a service business
- Bill from the job: parts and labour from the job card go onto the invoice, with no retyping.
- Per-line HSN/SAC and rates on mixed invoices (parts at their rate, service at 18%).
- CGST/SGST vs IGST from the place of supply.
- All the documents above, with your logo, terms, bank and UPI details on the print.
- Split payments: UPI, cash and card on one invoice; advances adjusted.
- Locked finalised invoices: corrections through credit notes, not edits.
- Shareable links and WhatsApp so customers receive invoices instantly.
- Reports: sales, collected, receivable and payable.
What Rasko does, and doesn’t do
How Rasko does it
Rasko does: GST quotations, tax invoices, sales bills, bills of supply, credit and debit notes, delivery challans and payment receipts, with per-line HSN/SAC and tax, CGST/SGST/IGST and split payments. Finalised documents lock their accounting fields, so corrections go through returns and credit notes. Invoices can be printed on your template or shared as a link or on WhatsApp.
Rasko doesn’t (currently): generate IRN e-invoices or e-way bills, or prepare GSTR returns. If you’re above the ₹5 crore e-invoicing threshold, or want returns filed from the same system, pair Rasko with your accountant’s GST filing software. See how this compares in Rasko vs Vyapar and Rasko vs Tally.
Tax rules change, so confirm HSN/SAC codes, rates and thresholds for your business with a chartered accountant or the GST portal.