Do you want to know about the SAC code and GST rate for courier services and goods transport? If yes, we have all the latest updates you should check out.
Introduction
India’s Goods and Services Tax (GST) regime is a vast and intricate system designed to simplify indirect taxation. At its core lies the GST Council, a collaborative body of central and state governments working to harmonise tax rates and regulations. To streamline the classification of goods and services, two primary codes are employed:
- HSN (Harmonized System of Nomenclature) Code: Used for categorising goods.
- SAC (Service Accounting Code): Used for categorising services.
For businesses, particularly those in the courier and goods transport sectors, precise HSN and SAC codes are paramount. Incorrect classification can lead to hefty penalties, disputes with tax authorities, and incorrect input tax credit claims.
This article aims to shed light on the SAC codes and GST rates specific to courier services, packaging services, and goods transport. We’ve meticulously gathered information from the Central Board of Indirect Taxes (CBIC) to ensure accuracy and reliability.
SAC Codes For Courier Services
As per the Central Board of Indirect Taxes(CBIC), the SAC code for courier and postal services is as follows:
- SAC Code 996811 – This is the SAC code for all postal services, including mailbox rental services and post office counter services.
- SAC Code 996812 – This is the SAC code for courier services
- SAC Code 996813 – This is the SAC code for local delivery services
- SAC Code 996819 – This is the SAC code for other Delivery Services
GST Rate For Courier Services
All the courier services that are allocated under SAC Code 996812 will be taxable at 18% GST. So, GST on courier services is 18%. Along with this, we would also like to inform you that some types of courier services provided by the Courier business that we have mentioned above can also come under Goods Transport. So, the GST rate for them will be different, which we will be sharing in the content ahead. Now, it’s time to know about the SAC code & GST rate for courier services and Goods transport
SAC Codes For Packaging Services
The SAC code for packaging services is mentioned below:
- SAC Code 998540 – This is the SAC code for packaging services of goods for others
- SAC Code 998541 – This is the SAC code for parcel packing and gift wrapping
- SAC Code 998542 – This is the SAC code for coin and currency packing services
- SAC Code 998549 – This is the SAC code for other packaging services.
GST Rate For Packaging Service
The GST rate for packaging services is identical to that for courier services. All the packaging services will be taxable at 18% GST.
SAC Code & GST Rate For Goods Transport Services
The SAC code & GST rate are different for different goods and transport services. The goods transport services are divided into three categories: Goods transported by Land, Goods transported by water, and goods transported by air. We will share details about all the different categories of goods transport services here.
SAC Code For Goods Transport By Land
- SAC Code 996511 – This is the SAC code for road transport services of goods, including parcels, letters, household & office furniture, live animals, containers, etc., by trucks, refrigerator vehicles, trailers, man or animal-drawn vehicles, or any other vehicles.
- SAC Code 996512 – This is the SAC code for railway transport services of goods, including parcels, letters, household & office furniture, live animals, containers, intermodal containers, bulk cargo, etc.
- SAC Code 996513 – This is the SAC code for transport services of petroleum & natural gas, sewage, water, and other goods via pipeline.
- SAC Code 996519 – This is the SAC code for other land transport services for goods.
SAC Code For Goods Transport By Water
- SAC Code 996521 – This is the SAC code for transoceanic (overseas) and coastal water transport services of goods by refrigerator vessels, bulk cargo vessels, tankers, container ships, etc.
- SAC Code 996522 – This is the SAC code for inland water transport services of goods by tankers, refrigerator vessels, and other vessels.
SAC Code For Goods Transport By Air
- SAC Code 996531 – This is the SAC code for air transport services of letters & parcels and other goods
- SAC Code 996532 – This is the SAC code for space transport services of freight.
GST Rate For Good Transport Services
We would like to inform you that GST is not applicable for the service on the basis of the way of transportation of goods. GST is decided on the basis of the product that is being transported. GST is not applicable to transport by road or inland waterways, but GST is applicable to Goods transportation agencies and courier agencies. Following are the items or goods on the transportation of which GST is not applicable.
- Agricultural produce
- On all the goods where the consignment transported in a single carriage does exceed 1,500 rupees.
- Good where consignment charges for a single consignee do not exceed 750 rupees.
- Milk
- Salt and food grains such as pulses, rice, and flour.
- Organic manure
- Newspaper or magazines
- Relief materials for victims of any disasters
- Defense equipment
- Military products and equipment
These are some of the product categories where GST is not applicable
But, as we already shared, GST applies to Goods transport agencies. If you don’t know what a goods transport agency is then, we would like to inform you that any person or company that provides services of transportation of goods by roads is considered a goods transport agency.
So, 5% GST with no input tax credit is applicable on services provided by a goods transport agency in connection to the transportation of goods and all household items that are for personal use.
Use our GST calculator to Calculate the GST amount to be paid before registering for GST.
Conclusion
So, these are some of the SAC codes & GST Rates for Courier Services and Goods Transport. We have shared all the important details with you. We will be back soon with more such updates, and if you do not want to miss out on the upcoming updates, stay tuned to Vakilsearch.
FAQ
What is the SAC Code for Courier Services under GST?
The SAC (Services Accounting Code) for Courier Services under GST is 996901.
How is the GST rate determined for Goods Transport in India?
The GST rate for Goods Transport in India is determined based on factors such as the nature of the transportation service and whether it is provided by road, rail, air, or other modes.
Are there different SAC Codes for domestic and international Courier Services under GST?
Yes, there are different SAC Codes for domestic and international Courier Services under GST. For domestic services, the SAC Code is 996902, and for international services, it is 996903.
Do the GST rates for Goods Transport vary based on the type of goods being transported?
GST rates for Goods Transport can vary based on the type of goods being transported. Different rates or exemptions may apply depending on the nature of the goods and the specific transportation service.
Are there any exemptions or special considerations for small-scale courier service providers under the GST framework?
Small-scale courier service providers may benefit from certain exemptions or considerations under the GST framework. These could include threshold exemptions or reduced compliance requirements, providing relief to businesses with lower turnovers.
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