GST Registration for Car Dealers and Showroom

  • Claim ITC
  • One Nation, One Tax
  • Expand Nationwide
  • Mandatory for Car Dealers
  • Trusted Dealership Identity
  • Quick Online Process
  • Banking Compliance

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GST Registration for Car Dealers and Showroom

GST Registration for Car Dealers and Showroom

GST Registration is mandatory for car dealers and showrooms once turnover exceeds ₹20 lakhs (₹10 lakhs in special states). Cars attract 28% GST plus cess, while accessories and spare parts are taxed at 18–28%. PAN, Aadhaar, address proof, and bank details are required. A GSTIN enables dealers to issue compliant invoices, claim ITC, and expand nationwide.

Key Highlights of GST Registration

  • Mandatory for Car Showrooms

    GST registration is compulsory once turnover exceeds ₹20 lakhs.

  • Unified Tax Regime

    Replaces VAT, excise duty, and service tax in automobile sales.

  • Paperless Registration

    Complete the registration online.

  • Input Tax Credit Benefits

    ITC available on spare parts, accessories, machinery, and rentals.

  • Corporate Sales Ready

    GSTIN required for government tenders and corporate fleets.

  • Banking Necessity

    Needed to open and operate current accounts.

  • E-Commerce Compliance

    Dealers selling via auto marketplaces must have GSTIN.

  • Professional Credibility

    Builds trust with buyers, lenders, and brands.

  • Applicable to All Auto Models

    New cars, used cars, spare parts, and workshop services.

  • Quick Processing Time

    Registration usually takes 7–10 working days.

  • GST-Compliant Invoices

    Transparent billing for clients.

  • Covers Hybrid Businesses

    Dealers offering both vehicles and accessories must register.

  • Supports Growth

    Helps expand dealership operations across states.

  • Avoids Penalties

    Prevents fines and non-compliance issues.

GST Registration for Car Dealers and Showroom FAQs

Who files GST returns for car dealers?

The dealer or an authorized GST consultant.

Is GST applicable on demo cars?

Yes, tax implications apply when demo cars are sold.

Can small car showrooms avoid GST?

Yes, only if turnover is below threshold and no interstate sales.

What happens if dealers don’t register?

They may face penalties, fines, and loss of business credibility.

Is GST applicable on car leasing?

Yes, leasing services are taxable under GST.

Do multi-state showrooms need multiple GST registrations?

Yes, separate GST is required for each state.

Do car showrooms need GST for finance & insurance?

Yes, GST applies on certain service charges billed.

Can car dealers claim ITC?

Yes, on spare parts, advertising, workshop equipment, and services.

How long does GST registration take?

Typically 7–10 working days.

What documents are needed for GST registration?

PAN, Aadhaar, address proof, bank proof, and incorporation documents (for companies).

Do showrooms need GST for accessories?

Yes, accessories and add-ons are taxable under GST.

What is the GST on spare parts?

Car spare parts usually attract 28% GST.

Do used car dealers need GST?

Yes, second-hand car dealers must register under GST if turnover exceeds the limit.

What is the GST rate for cars?

Most cars attract 28% GST plus applicable cess.

Is GST registration mandatory for car dealers?

Yes, if annual turnover exceeds ₹20 lakhs (₹10 lakhs in special states).

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