The GST Council mapped all GST rates to Service Accounting Codes (SAC Codes) in order to classify the services. For the categories of services used, the Service Tax Department will use the SAC Codes to levy the tax. As a result of the GST Council’s implementation of GST rates for Goods Transport Services under the SAC Codes of 5%, 12%, and 18%, the GST rates have been implemented.
Registration for GST for transporters
For all taxable persons involved in the business of good transportation, GST registration is mandatory, regardless of the volume of annual sales. In addition, businesses and individuals involved in the provision of goods and transportation hsn code must be familiar with GST E-Way Bill regulations and rules.
Transport of goods by land
- In the SAC code, under the category of goods transport services, there is a category devoted to land transport of goods. Here are some services that fall into this category.
- The SAC code 996511 covers road transport of goods, including letters, parcels, live animals, household and office furniture, containers and others by refrigerator vehicles, trucks, trailers, man-drawn vehicles, or any other vehicles.
- In this SAC Code, you’ll find services such as railway transport of letters, parcels, live animals, household and office furniture, containers, bulk cargo, and more.
- 996513 – Pipeline transportation of petroleum, natural gas, water, sewage, and other goods.
- 996519 – Other land transport services.
Goods transported by water
- Among the category of goods transport services in the SAC code, there is a separate heading for water transport of goods. The following services are classified under this heading with their respective SAC codes.
- 996521 – Refrigeration vessels, tankers, bulk cargo vessels, container ships, and other water transport services by coast and ocean (overseas).
- Refrigeration vessels, tankers, and other vessels used for inland water transportation of goods are classified under SAC Code 996522.
Transport of goods by air
- This group includes the following services, with the appropriate SAC codes, under the heading air transport services of goods.
- ASC Code 996531 – Air transport of letters, parcels, and other goods.
- Freight space transport services – SAC Code 996532.
Goods Transport GST Rate
- There is a 5% GST on rail transport of goods, and input tax credits are allowed on input services.
- GTAs provide transportation services and ship used household goods for personal use at 5% GST with no input tax credit.
- By way of transportation of goods from outside India to the customs station of clearance in India by way of a vessel, services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory will be taxable at 5% GST. For services related to the import of goods into India, this will apply.
Containers transported by rail by anyone other than Indian Railways are subject to 12% GST.
If the GST rate for services has not been specifically mentioned above, then an 18% GST rate would be applicable with a full input tax credit.