Transportation HSN Code, GST on Logistics, SAC Code for Transport, GST Rates on Transportation 2025, HSN Code for Courier, GST Exemption in Transport, HSN Code for Air Cargo, GST on Warehousing, Goods Transport Agency GTA GST, GST on Passenger Transport
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Transportation plays a crucial role in the logistics and supply chain industry. To regulate taxation under GST (Goods and Services Tax), every transportation service is categorized under specific HSN Codes (Harmonized System of Nomenclature). These codes help in the uniform classification of goods and services across India and the world.

In this blog, we’ll cover:

  • ✅ What are Transportation HSN Codes?

  • ✅ Importance of HSN Codes in Logistics and Shipping

  • ✅ Current GST Rates on Transportation (2025 Update)

  • ✅ HSN Codes List for Transportation Services

  • ✅ Key GST Exemptions in Transportation Services

  • ✅ FAQs on Transportation HSN and GST

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📌 What are Transportation HSN Codes?

HSN (Harmonized System of Nomenclature) is a globally recognized system developed by the World Customs Organization (WCO). In India, HSN codes are used for goods, while SAC (Service Accounting Codes) are used for services.

Since transportation falls under services, logistics companies, freight forwarders, and transporters must use SAC codes for GST filing.

🚛 Importance of HSN Codes in Transportation

  1. Uniform Taxation – Helps standardize GST across different states.

  2. Ease of Filing – Accurate GST returns with the correct HSN/SAC code.

  3. Transparency – Avoids confusion in logistics billing and compliance.

  4. Global Recognition – HSN codes are recognized internationally, supporting import-export businesses.

📊 Current GST Rates on Transportation (2025 Update)

GST rates on transportation depend on the type of service offered:

Service Type HSN / SAC Code GST Rate Remarks
Road Transport (Goods) – GTA (Goods Transport Agency) 996511 5% (without ITC) or 12% (with ITC) GTA services attract dual options for GST.
Road Transport (Passenger) 9964 5% – 18% Depends on seating capacity and service type.
Rail Transport of Goods 996512 5% ITC (Input Tax Credit) available.
Rail Passenger Transport 996411 5% (AC Class) Sleeper class is exempt.
Air Transport of Goods 996531 18% Applicable on air cargo and courier shipments.
Air Transport (Passenger) 9964 5% (Economy) / 12% (Business) GST varies by class of travel.
Water Transport (Goods) 996521 5% Coastal and inland water transport.
Courier & Express Cargo 996812 18% Covers domestic and international courier services.
Logistics & Warehousing 9967 18% Includes storage, handling, and distribution.

🛑 GST Exemptions in Transportation Services

Not all transport services are taxable. Some are fully exempt under GST, including:

  • Road transport services (except GTA and courier services).

  • Transport of agricultural produce.

  • Transport of milk, salt, and food grains.

  • Passenger transport by non-AC bus, metro, and local trains.

👉 These exemptions reduce costs for essential goods and public transport.

📌 Key HSN/SAC Codes for Transportation Services

  • 9965 – Services of Goods Transport Agency (GTA)

  • 9964 – Passenger Transport Services

  • 9967 – Logistics, Warehousing, and Storage

  • 9968 – Postal & Courier Services

  • 996531 – Air Cargo Services

  • 996521 – Water Transport Services

These SAC codes should be mentioned on invoices, GST returns, and tax documents to remain compliant.

💡 Practical Example

If a logistics company issues a bill for domestic air cargo, it must mention:

  • SAC Code: 996531

  • GST Rate: 18%

  • Input Tax Credit (ITC): Available

This ensures proper compliance and avoids penalties.

📈 Why Businesses Must Stay Updated on GST Rates

With GST laws frequently updated, transporters and logistics companies must:

  • ✅ Use correct HSN/SAC codes on invoices.

  • ✅ Check for exemptions applicable to their services.

  • ✅ Maintain proper ITC records to reduce tax liability.

Failure to comply can result in penalties, GST mismatches, and blocked ITC claims.

🤔 FAQs on Transportation HSN Codes & GST

Q1. What is the HSN code for goods transport by road?
👉 The HSN (SAC) code is 996511 for Goods Transport Agency (GTA).

Q2. Is transportation of essential goods exempt from GST?
👉 Yes, food grains, milk, salt, and agricultural produce are GST-exempt.

Q3. What is the GST rate for courier services?
👉 Courier and express cargo services are taxed at 18% under SAC 996812.

Q4. Do small transporters need to register for GST?
👉 Transporters earning below the GST exemption limit are not required to register, unless they are a Goods Transport Agency (GTA).

Q5. Is Input Tax Credit (ITC) available on transportation?
👉 Yes, but it depends on the GST rate chosen (5% without ITC or 12% with ITC for GTA).

🏆 Final Thoughts

Understanding Transportation HSN Codes and GST Rates is essential for logistics companies, transporters, and businesses dealing with domestic and international shipments.

By using the correct SAC codes and GST rates, businesses can:

  • ✅ Ensure tax compliance

  • ✅ Claim input tax credits

  • ✅ Avoid legal penalties

  • ✅ Streamline logistics billing

At WYSNER GLOBAL INC., we provide complete logistics solutions with air freight, sea freight, courier, and customs clearance services, ensuring transparent GST billing with accurate HSN codes for all shipments.

🚀 Contact us today for hassle-free transportation services with GST-compliant invoicing.