GST Billing for Repair Shops: A Practical Walkthrough
A repair invoice mixes a physical part and a service on the same bill, which is exactly where shops trip up. Here's the structure — not tax rates, which change and are worth confirming with your CA, but the invoice structure that stays the same either way.
A Repair Bill Is Two Things at Once
A screen replacement is a part (goods) plus the labour to fit it (a service) — and GST treats the two differently. Billing them as one lump "repair charge" is the single most common mistake on a repair counter's invoices, and it's the first thing worth fixing regardless of which business type you are.
Business Type
Unregistered, Regular, or Composition?
Which one applies to your shop is a turnover and registration question, not a repair business question — but it decides what your invoice needs to show.
Unregistered
Below the GST threshold
The default for most small repair shops just starting out. No GSTIN, no GST charged on the bill. A completely normal, common choice below the registration threshold — not a workaround.
Regular
GST registered, standard scheme
GSTIN on every invoice, GST charged on both parts and labour, and input tax credit available on parts you purchase. Comes with regular return filing.
Composition
GST registered, composition scheme
A simpler filing scheme for smaller registered businesses, with its own turnover cap and no input tax credit. Whether this or Regular fits better depends on your purchase volume — worth checking with a CA.
What Goes on the Invoice
- Shop name, address and GSTIN (when registered)
- Sequential invoice number and date
- Customer name and, for B2B, their GSTIN
- Parts used — as separate line items with HSN code and quantity
- Labour / service charge — as its own line item with SAC code
- Advance already collected, deducted before the final amount due
- Tax breakup, when GST-registered — CGST/SGST or IGST as applicable
The Mistake: One Line Item for "Repair"
Writing "Screen repair — ₹2,500" as a single line hides the part cost from the labour cost. Split it: the screen as a parts line with its HSN code and cost, the fitting as a labour line with its SAC code. Same total, but now the bill is auditable and matches what a customer, an accountant, or a GST inspector expects to see.
Frequently Asked Questions
Does every repair shop need to register for GST?
No. Registration is based on annual turnover, not on the type of business. Many small repair shops stay under the threshold and bill as Unregistered — that's a legitimate, common choice, not a workaround. Check your specific threshold with a CA, since it depends on your state and turnover.
Why does a repair invoice need parts and labour split separately?
A repair job usually involves two different things: a physical part (a screen, a battery) and a service (the labour to fit it). Keeping them as separate line items — rather than one lump 'repair charge' — is what makes an invoice actually auditable, and it's what a customer or an inspector expects to see.
What's the difference between Regular and Composition scheme for a repair shop?
Both are for GST-registered businesses. Regular scheme lets you claim input tax credit on the parts you buy, but comes with more return filing. Composition scheme is simpler to file but with its own restrictions and no input credit. Which one fits depends on your turnover and purchase pattern — this is worth a conversation with a CA rather than a generic answer.
Can Kiwikit generate both GST and non-GST invoices?
Yes. You set your business type once — Unregistered, Regular, or Composition — and the invoice format follows automatically, including GSTIN and HSN/SAC fields where they apply.
Read next
See how billing fits into the wider workflow on Job Card Software, explore Kiwikit Mobile Repair Software, or check plans and pricing.
Try Kiwikit Billing
Set your business type once — GST and HSN/SAC fields follow automatically on every invoice.
This page covers invoice structure, not tax advice. Confirm rates and registration thresholds with your CA.