Run a cab or vehicle-hire business? GST now gives you 5% or 18% — see which keeps more money, and what you're locked into.

Vehicle hire with fuel included · GST rates as at 11 Oct 2026
1Enter your billing 2Add the vehicles you're buying 3See which rate keeps more 4Print the note

Your billing and your fleet

a year, ₹
What your clients pay you in a year, GST included.
Fixed, GST included — most private and corporate contracts.
Repairs, tyres, spares, insurance, booking commission. Leave fuel out.

Everything else

open only what you need
More vehicles and years5 years · 0% growth
5 — the usual life of a hire car.
0 — we assumed flat billing.
Your clientscompanies · firm
Companies — the usual monthly-hire client.
Proprietorship or firm — most operators.
Names for the printed noteoperator, CA letterhead
Printed on the note exactly as you type it.
"Chartered Accountants" prints under it. Leave blank for a plain note.

The firm details are remembered on this device for your next client.

Your answer

What you keep each way

18% compared with 5%
    Year by year
    How this worksthe rules behind the answer
    • The 5% rate. Vehicle hire with fuel included can be billed at 5%, but only if you take no GST credit on what you use — except on hiring from other operators.
    • The 18% rate. Since 22 Sep 2025 the same service can be billed at 18% with full credit, including the GST on your cars and buses. It replaced the old 12% option.
    • The lock-in. We take the cautious view: the choice covers all your hire work, and once you take credit on a vehicle, trips with it can't go back to 5%.
    • Your clients usually can't claim the GST on hired cars. So if they pay "GST extra", the move from 5% to 18% is a real cost to them.
    • Company clients and reverse charge. If you're a proprietorship or firm and your client is a company, the client pays the 5% itself — unless you charge the full-credit rate.
    • The break-even. On a fixed GST-included price you keep price ÷ 1.05 at 5%, or price ÷ 1.18 plus your credit at 18%. So 18% pays only when your credit tops 10.49% of your billing.

    Notification 11/2017-CT(Rate) as amended by 15/2025; CGST Act s.17(5).

    A comparison of the two GST options for vehicle hire with fuel included, as at 11 Oct 2026. Some points are unsettled and flagged. It doesn't file anything or decide classification. Confirm with your CA before you change your rate or sign a tender.

    Want your CA to set up the switch or the tender pricing? Karan's firm does this → cakarangupta.com

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    Statutory rules change — verify against the latest notifications before you rely on this. Maintained by a practising Chartered Accountant.