Gst Rates for Courier And Goods Transport Services

GST rate for all services supplied in India is determined by the GST Council. GST Council consists of members from the Central and State Government to regulate and implement all aspects of

GST in India. GST rate for services is tied to SAC code, while GST rate for goods is tied to the HSN code. SAC code is a services classification system developed by the Service Tax Department in India. HSN code used for classifying goods is an internationally accepted system for classifying goods in the course of international trade. In this article, we look at the SAC code and GST rate for courier services and goods transport services in India. As per Central Board of Indirect Taxes (CBIC)

SAC Codes for Courier Services

The SAC Code for postal and courier services are as follows: SAC Code 996811 - Postal services, including post office counter services, mailbox rental services. SAC Code 996812 - Courier services SAC Code 996813 - Local delivery services SAC Code 996819 - Other Delivery Services

GST Rate for Courier Services

Courier services classified under SAC Code 996812 will be taxable at 18% GST. In addition to the above types of courier services, some services provided by a Courier business can also fall under Goods Transport. We look at the SAC Code and GST rate for Goods Transport below.

SAC Codes for Packaging Service

The SAC code for packaging services are as follows: SAC Code 998540 - Packaging services of goods for others SAC Code 998541 - Parcel packing and gift wrapping SAC Code 998542 - Coin and currency packing services SAC Code 998549 - Other packaging services n.e.c 18% of GST is applicable to packaging services.

Goods Transport Services

Goods Transport Services are divided into the following headings under the SAC:

Goods Transport by Land

SAC Code 996511 - Road transport services of Goods including letters, parcels, live animals, household & office furniture, containers etc. by refrigerator vehicles, trucks, trailers, man or animal-drawn vehicles or any other vehicles. SAC Code 996512 - Railway transport services of Goods including letters, parcels, live animals, household & office furniture, intermodal containers, bulk cargo etc SAC Code 996513 - Transport services of petroleum & natural gas, water, sewerage and other goods via pipeline SAC Code 996519 - Other land transport services for goods

Goods Transport by Water Transport

SAC Code 996521 - Coastal and transoceanic (overseas) water transport services of goods by refrigerator vessels, tankers, bulk cargo vessels, container ships etc SAC Code 996522 - Inland water transport services of goods by refrigerator vessels, tankers and other vessels.

Goods Transport by Air Transport

SAC Code 996531 - Air transport services of letters & parcels and other goods SAC Code 996532 - Space transport services of freight

Definition for Goods Transport Agency

Under GST, “Goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

GST Rate for Goods Transport

The following GST rates are applicable for goods transport and goods transportation agency:

GST is not applicable for services by way of transportation of goods

By road except for the services of—
- Goods transportation agency;
- Courier agency;
By inland waterways.

GST is not applicable for services provided by a goods transport agency, by way of transport in a goods carriage of:

Agricultural produce;
Goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
Goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;
Milk, salt and food grain including flour, pulses and rice;
Organic manure;
Newspaper or magazines registered with the Registrar of Newspapers;
Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or
Defence or military equipment.

GST Rate for Transport Services

5% GST rate with no input tax credit is applicable for services of goods transport agency (GTA) in relation to transportation of goods and used household goods for personal use. Read about GST Rate for Passenger Transport Services.

Know more about the procedure for obtaining GST registration or filing GST returns in India at IndiaFilings.com

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Frequently Asked Questions

Common questions about GST Rates for Courier and Goods Transport Services India.

The GST rate for courier services classified under SAC Code 996812 is 18%. Courier services are taxable at 18% GST rate in India.

The SAC codes for packaging services are 998540 for packaging services of goods for others, 998541 for parcel packing and gift wrapping, 998542 for coin and currency packing services, and 998549 for other packaging services not elsewhere classified. The GST rate applicable to these packaging services is 18%.

No, GST is not applicable for services by way of transportation of goods by road, except for the services of goods transportation agency, courier agency, and transportation by inland waterways.

For services provided by a goods transport agency, a GST rate of 5% with no input tax credit is applicable in relation to the transportation of goods and used household goods for personal use.

Yes, GST is not applicable for services provided by a goods transport agency for the transport of agricultural produce, goods where the consideration charged does not exceed certain limits, milk, salt, food grains, organic manure, newspapers or magazines, relief materials, and defense or military equipment.

The SAC code for road transport services of goods, including letters, parcels, live animals, household and office furniture, containers, etc., by refrigerator vehicles, trucks, trailers, man or animal-drawn vehicles, or any other vehicles, is 996511.

The article does not mention the specific GST rate for railway transport services of goods classified under SAC Code 996512. However, it provides the SAC code for these services.

Yes, the article includes the SAC code 996531 for air transport services of letters, parcels, and other goods, as well as the SAC code 996532 for space transport services of freight.

As per the article, under GST, a "goods transport agency" means any person who provides service in relation to transport of goods by road and issues a consignment note, by whatever name called.

The article does not explicitly mention the GST rate for inland water transport services of goods classified under SAC Code 996522. However, it states that GST is not applicable for services by way of transportation of goods by inland waterways.