HSN code 996511 (or SAC 996511) is used for road transport services of goods under the GST regime in India. It covers the transportation of items such as letters, parcels, live animals, furniture, and containers, via trucks, trailers, or other vehicles. This code is commonly used by Goods Transport Agencies (GTAs).
HSN code for transportation charge
For instance, road transport services are typically classified under HSN code 996511, while rail transport services fall under HSN code 996512. Similarly, air transport, water transport, and pipeline transport each have their unique HSN codes for taxation purposes.
Falls in the same “goods transport services” bucket as 996511; historically carried 5/12/18 options. Under GST 2.0, the concessional 5% without ITC remains and the 12% with ITC option is rationalised to 18% with ITC for fully taxable cases. Classified under goods transport services.
Detailed Explanation of Freight HSN Code
996511: Use this for general road transport services for goods. 996791: This specific code applies to road transport services by a Goods Transport Agency (GTA). 996512: Use this for services involving the transport of goods by railway.
What is the HSN Code for Freight Charges? Freight Charges is classified under the HSN code 9965. The first two digits of the code 99 represent the chapter which is Services in which Freight Charges is classified . The entire six digits represent the product itself.
The Harmonized System of Nomenclature – HSN code for freight charges is 9965, which pertains to goods transport services. This code is further subdivided to categorize different modes of transportation: 996511: Road transport services of goods, including live animals, household furniture, parcels, etc.
Multiply the freight charge amount by the applicable GST rate. For example, if the freight charge is ₹10,000 and the GST rate is 5%, the GST amount will be ₹500. Add this GST amount to the freight charge to get the total payable amount.
HSN Code 996519: Other land transport services of goods n.e.c.
Freight and forwarding charges fall under HSN/SAC code 9965, specifically used for transportation of goods services. Reverse charge mechanism (RCM) applies exclusively to road transport services provided by a Goods Transport Agency (GTA).
A single wrong HSN code can cause a chain reaction across your accounting and compliance system: Tax rate mismatch: Incorrect HSN = wrong GST rate = wrong tax collected or paid. Return reconciliation errors: GSTR-1 vs GSTR-3B mismatches. Customer disputes: Buyers may lose input tax credit.
Is it mandatory to mention SAC code in GST invoice? Yes, mentioning the SAC code on GST invoices is mandatory for registered businesses. The requirement varies based on annual turnover. Businesses with turnover above ₹5 crore must include all six digits of the SAC code on invoices and in GSTR-1 filings.
Beginning September 1, 2025, the U.S. Postal Service will require all international commercial shipments to include a six-digit Harmonized System (HS) code on customs declarations.
Step-by-Step Guide to Finding the Right HSN Code
Only services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt.
HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world.
What does SAC code 996511 cover in GST? SAC 996511 covers road transport services of goods by trucks, lorries and other goods vehicles, normally when not treated as GTA under separate rules.
In India, the HS code is known as Harmonised System of Nomenclature (HSN) or India Trade Classification Harmonised System (ITC-HS). Although these terms are often used interchangeably, there's a slight difference between them. HSN typically refers to a basic 6-digit code, while ITC-HS is an extended 8-digit HSN code.
The HSN code 996511 specifically categorises freight transport services by road. This detailed classification under the GST regime allows for precise identification of the service type, aiding in accurate tax computation and compliance.
HSN Code 996512: Railway transport services of goods including letters, parcels, live animals, household & office furniture, intermodal containers, bulk cargo etc.
The 40% GST is now a single consolidated rate for sugar-added, flavoured, or carbonated drinks, including cola, lemonade, and fruit-based fizzy beverages. The previous 12% compensation cess has been removed. All aerated soft drinks, whether fruit-based or cola-based, now attract 40% GST under the sin goods category.
What Transport Services Are Subject to GST? Most domestic transport and logistics services are taxable and attract the standard 10% GST. This includes: Freight and cargo handling within Australia.
Five key things to consider when estimating freight shipping rates
In most cases, GST is applied to the taxable value of imports, which includes the cost of the goods, insurance and freight (CIF).