Services (SAC) 5% GST Updated 21 Apr 2026

SAC Code 9964
Transport Services (road, rail, air freight)

SAC 9964 covers transport of goods. Rates vary by mode and nature: Goods Transport Agency (GTA) commonly 5% (no ITC) or 12% (with ITC). Courier services 18%.

SAC Code

9964

GST Rate

5%

Preferred UQC

NOS

Rate details & exceptions

Multi-rate SAC. GTA (Goods Transport Agency by road) → 5% no ITC OR 12% with ITC — GTA chooses. Courier services → 18%. Rail transport of goods → 5%. Air freight (within India) → 18%. Ocean freight → 5% for outbound, various for inbound. Passenger transport has separate codes (9964 31 / 9964 32).

What SAC 9964 covers

SAC 9964 applies to the following products and variants. If your item isn't in the list, consult a CA or search the CBIC HSN master for the exact sub-heading.

  • Road freight by GTA (trucks, tempos)
  • Courier & parcel services
  • Rail freight
  • Air freight
  • Ocean / shipping freight
  • Packers & movers

How to enter SAC 9964 on an invoice

On a GST-compliant invoice, add the following for each line item:

  • SAC code: 9964
  • Description: Transport Services (road, rail, air freight) (or your specific SKU name)
  • UQC: NOS
  • Quantity, rate per unit, taxable value
  • GST rate: 5% (split as CGST + SGST for intra-state, or IGST for inter-state)

21bill auto-fills SAC 9964 and the 5% rate the moment you type "transport services (road, rail, air freight)" in the item description — so you don't memorise codes.

Questions people ask about SAC 9964

GTA 5% or 12% — which should I pick?

If you (the transporter) want to claim ITC on fuel, vehicle maintenance, office rent etc. → charge 12% with ITC. If ITC is minimal for your operations → charge 5% without ITC (simpler, lower quote to customers). Most small transporters pick 5%; larger fleets with significant vehicle depreciation pick 12%. Once chosen, stay consistent — switching mid-year is not allowed.

Is freight GST under RCM?

Yes — if you receive GTA services as a GST-registered business entity from an unregistered or 5%-unregistered-GTA transporter, you pay 5% GST on the freight under RCM. You can claim this as ITC. Courier services from registered courier companies (DTDC, Blue Dart) are forward-charge at 18%.

How does ocean freight GST work?

Outbound ocean freight (export from India) → 5%, zero-rated under LUT. Inbound ocean freight historically had a complex 5% IGST under RCM rule — this was modified by multiple CBIC notifications through 2023-24. For imports after September 2023, check the current CBIC notification; consult a CA before assuming the rate.

Related codes

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⚠️ This page is a working reference, not tax advice. GST rates and classifications change — confirm with your CA or the latest CBIC notification before filing. Last reviewed 21 April 2026.