In India, vehicle transportation is the most common method of moving products. According to the National Highways Authority of India, highways carry around 65% of freight HSN code and 80% of passenger traffic. A transporter or courier company handles the road transportation of products. According to Notification No. 11/2017-Central Tax (Rate) issued 28 June 2017, ‘goods transport agency’ or GTA refers to any individual who offers services in connection with the transportation of goods by road and releases consignment notes, regardless of the name used.
What Kind of Transportation Service Is Excluded from the GST?
Services involved in the movement of commodities are exempt except for the services of a courier agency by inland waterways; and a products transportation agency by road.
As a result, even under the GST system, road freight transportation services remain exempt. Only goods transport agencies are subject to GST.
Services Accounting Code (SAC)
The Central Board of Excise and Customs (CBEC) created the Services Accounting Code (SAC) to identify each service. A code of eight digits is assigned for each of the categorized services. There are currently more than 120 categorized services. For services to be classified using this coding system, SAC codes have been expanded under the GST regime to classify services using this coding system. Therefore, even from the perspective of GST, SAC is still crucial.
Goods Transport Services GST Rates 9965 SAC Code
| SAC Code | Description of Services | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|
| 9965 | Goods Transport Services | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
| 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. | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
| 996512 | Railway Transport Services Of Goods Including Letters, Parcels, Live Animals, Household & Office Furniture, Intermodal Containers, Bulk Cargo Etc | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
| 996513 | Transport Services Of Petroleum & Natural Gas, Water, Sewerage And Other Goods Via Pipeline | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
| 996519 | Other Land Transport Services Of Goods N.E.C. | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
| 996521 | Coastal And Transoceanic (Overseas) Water Transport Services Of Goods By Refrigerator Vessels, Tankers, Bulk Cargo Vessels, Container Ships Etc | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
| 996522 | Inland Water Transport Services Of Goods By Refrigerator Vessels, Tankers And Other Vessels. | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
| 996531 | Air Transport Services Of Letters & Parcels And Other Goods | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
| 996532 | Space Transport Services Of Freight | 5/12/18 | Nil Nothing contained in this serial number shall apply after the 30thday of September, 2020. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service | 27/07/2018 13/10/2017 22/08/2017 | 12% 18% 5% 12% 18% 5% 12% |
FAQs
What Does Freight Charges Include?
Generally speaking, freight expenses cover the price of moving items from one place to another.
- Transportation costs
- Managing fees
- Traveler’s insurance
What is the GST rate for freight charges under HSN code 9965?
The GST rate for freight charges under HSN code 9965 is 12 percent, it’s essential to verify this information with the latest GST rate schedule or consult with a tax professional as rates may have changed after my last update.