Goods Transport Services SAC Code 9965

The SAC code for goods transport services is 9965 in India. It covers the transportation of goods by road, rail, water, air and pipelines. The applicable GST rate depends on the transport mode, service provider, exemptions and tax-payment arrangement.

Goods transportation is classified under SAC (Services Accounting Code), not HSN, because transportation is a service. The exact six-digit SAC code must be selected based on how the goods are transported.

What Is the SAC Code for Goods Transport Services?

Goods transport services fall under SAC heading 9965, which covers the movement of goods through different modes of transportation.

Particular	Details
Service	Goods transportation
SAC heading	9965
Official classification	Goods Transport Services
Classification type	SAC, not HSN
Transport modes	Road, rail, water, air and pipelines
GST rate	Varies by transport service and applicable conditions
Common road transport SAC	996511

SAC 9965 is a four-digit heading. For GST classification, businesses should identify the appropriate six-digit code based on the transportation service supplied.

SAC Codes for Different Types of Goods Transport Services

The official GST classification provides separate SAC codes for different modes of goods transportation.

Goods transport service	SAC code
Road transport services of goods	996511
Railway transport services of goods	996512
Transportation of goods through pipelines	996513
Other land transport services of goods	996519
Coastal and overseas water transport of goods	996521
Inland water transport of goods	996522
Air transport services of goods	996531

These classifications cover the transport of goods, including commercial cargo, parcels, containers, household goods and other freight, depending on the transport mode.

The SAC code identifies the service category. It does not independently determine whether GST is payable or which rate applies.

GST Rate on Goods Transport Services in India

Goods transport services do not have one uniform GST rate. Some transportation services are exempt, while others are taxable at different rates depending on the applicable GST notifications.

Transport service	GST treatment
Road transport by a person other than a GTA or courier agency	Generally exempt
Goods Transport Agency (GTA) services	Generally 5% or 18%, depending on the applicable option and conditions
Courier services	Generally 18%
Railway transport of goods	Rate depends on the applicable rail freight entry and conditions
Inland water transport of goods	Generally exempt
Coastal or overseas goods transportation	Depends on the route, service and applicable provisions
Air transport of goods	Depends on the route and applicable exemption provisions
Pipeline transport	Depends on the specific taxable service and applicable rate entry

Businesses should verify the relevant GST notification before applying a rate, especially for GTA, railway and international freight services.

GST on Road Transport Services of Goods

Road transportation of goods generally falls under SAC 996511.

The GST treatment depends mainly on whether the transport provider is a Goods Transport Agency (GTA), a courier agency or another road transport operator.

Road Transport by a Non-GTA Operator

Transportation of goods by road is generally exempt from GST when the service provider is neither a GTA nor a courier agency.

For example, an independent truck operator transporting goods without issuing a consignment note may qualify for the road transport exemption.

However, the actual service arrangement and documents should be checked before treating the transaction as exempt.

Goods Transport Agency (GTA) Services

A Goods Transport Agency is a person who provides services relating to transportation of goods by road and issues a consignment note.

GTA services have specific GST rate and tax-payment provisions.

Depending on the applicable option and conditions, GTA services may attract:

5% GST, subject to prescribed conditions.
18% GST, where the applicable higher-rate option is exercised.

The tax may be payable by the GTA under forward charge or by an eligible recipient under the Reverse Charge Mechanism (RCM).

The treatment depends on the GTA’s tax-payment option, recipient category and relevant GST provisions.

For businesses primarily dealing with road freight, see the SAC classification for road transport services.

GST on Railway Transport Services of Goods

Railway transportation of goods falls under SAC 996512.

This classification includes transporting commercial goods, parcels, containers, bulk cargo and other freight through the railway network.

The applicable GST rate depends on the type of railway freight service and relevant notification.

Certain transportation services involving specified goods may qualify for exemptions.

Businesses should check the applicable railway freight category rather than assuming that every rail consignment attracts the same GST rate.

GST on Water Transport Services of Goods

Goods transportation through waterways is classified under different SAC codes depending on the route and transport mode.

Coastal and Overseas Water Transport – SAC 996521

SAC 996521 covers coastal and transoceanic transportation of goods by vessels, including container ships, tankers and bulk cargo vessels.

The GST treatment depends on the route, nature of supply, place-of-supply rules and applicable notifications.

International freight arrangements may involve additional considerations, including import-related valuation provisions and export-related tax treatment.

Inland Water Transport – SAC 996522

Transportation of goods through inland waterways falls under SAC 996522.

Services involving transportation of goods by inland waterways are generally exempt from GST under the relevant exemption notification.

Businesses should confirm that the actual transportation service qualifies for the exemption.

GST on Air Transport Services of Goods

Air transportation of goods falls under SAC 996531.

This classification covers transportation of cargo, parcels and other goods by aircraft.

The GST treatment depends on whether the service involves domestic or international transportation and whether a specific exemption applies.

For example, certain inbound international air freight services are covered by notified exemptions.

Businesses should verify the applicable route and current notification before calculating GST.

GST on Pipeline Transport Services

Transportation of goods through pipelines falls under SAC 996513.

This classification includes pipeline transportation of petroleum products, natural gas, water and other goods.

The GST treatment depends on the service supplied and applicable rate entry.

Pipeline transportation should not be classified as ordinary road freight simply because both involve movement of goods.

GST on Multimodal Goods Transportation

Multimodal transportation involves transporting goods using at least two different modes under a single contract with a multimodal transporter.

Under the GST rate changes effective from 22 September 2025, the following treatment applies:

Multimodal transport arrangement	GST rate
Transportation using two or more modes without an air transport leg	5%, with restricted ITC
Transportation involving at least one air transport leg	18%, with full ITC, subject to eligibility

For example, transporting goods by road and rail under a qualifying multimodal transport contract generally attracts 5% GST with restricted ITC.

If the same arrangement includes an air transport leg, the applicable rate is generally 18%.

The Ministry of Finance clarified these provisions in its September 2025 GST Council FAQs.

Is Reverse Charge Applicable to Goods Transport Services?

The Reverse Charge Mechanism (RCM) applies to specified goods transportation services, particularly certain services provided by a GTA.

Under RCM, the recipient pays GST instead of the transport service provider.

For example, when a GTA provides taxable transportation services to a notified category of recipient and has not opted to pay tax under forward charge, the recipient may be responsible for paying GST under RCM.

However, RCM does not apply automatically to all goods transport services.

Businesses should verify:

Whether the transporter qualifies as a GTA.
Whether a consignment note has been issued.
Whether the recipient falls under a notified category.
Whether the GTA has exercised a forward-charge option.
Whether the transportation service qualifies for an exemption.

Difference Between Goods Transport and Supporting Transport Services

Goods transportation and supporting transport activities are classified separately under GST.

Service	SAC code	Classification
Goods transport services	9965	Main heading for transportation of goods
Road transport of goods	996511	Transportation of goods by road
Rail transport of goods	996512	Transportation of goods by railway
Goods Transport Agency services for road transport	996791	GTA services classification
Courier services	996812	Courier services
Other supporting transport services	996799	Other supporting transport activities

For example, transporting goods in a truck is different from providing warehousing, cargo handling or other supporting logistics services.

Similarly, courier services have a separate classification and should not automatically be treated as exempt non-GTA road transportation.

Businesses can refer to the courier services SAC classification for the distinction.

GST Calculation Example for Goods Transport Services

Suppose a registered business receives taxable GTA services worth ₹20,000 and the applicable GST rate is 5%.

Particular	Amount
Transportation charges	₹20,000
GST at 5%	₹1,000
Total including GST	₹21,000

If forward charge applies, the GTA generally collects the GST from the recipient.

If reverse charge applies, the recipient accounts for the ₹1,000 GST liability under RCM rather than paying it as GST to the transporter.

For a GTA service taxable at 18%, GST on the same ₹20,000 freight value would be ₹3,600.

The applicable rate and tax-payment responsibility must be determined before issuing or recording the invoice.

How to Identify the Correct SAC Code for Goods Transport Services

Businesses should follow these steps:

Identify the transport mode: Determine whether goods are transported by road, rail, water, air or pipeline.
Select the appropriate SAC code: Use the six-digit classification corresponding to the transportation service.
Check the service provider: For road transportation, determine whether the provider is a GTA, courier agency or another transporter.
Verify GST applicability: Check the relevant rate, exemption, forward-charge or reverse-charge provisions.
Maintain transaction documents: Retain invoices, consignment notes, freight agreements and other supporting records.

The official GST Portal provides a search facility to verify SAC classifications.

FAQs About Goods Transport Services SAC Codes

What is the SAC code for goods transport services?

The SAC heading for goods transport services is 9965. The exact six-digit code depends on the mode of transport, such as 996511 for road transport and 996512 for railway transport.

What is the GST rate on goods transportation?

There is no single GST rate for all goods transport services. The rate depends on the transport mode, service provider and applicable exemption or tax-payment provisions.

What is the SAC code for goods transportation by road?

The SAC code for road transportation of goods is 996511. Goods Transport Agency services are also separately identified under SAC 996791.

Is GST applicable to transportation by an individual truck owner?

Road transportation by an operator who is neither a GTA nor a courier agency is generally exempt from GST, subject to the applicable conditions.

What is the GST rate for Goods Transport Agency services?

GTA services generally attract 5% GST without ITC, with an option for 18% GST with full ITC under the applicable provisions effective from September 2025.

Is GST applicable on inland water transportation of goods?

Transportation of goods by inland waterways is generally exempt from GST under the relevant exemption notification.

Simplify Transport Billing and GST Records with myBillBook

Transport businesses, wholesalers and distributors regularly handle freight charges, delivery records, customer payments and GST-related documents.

With myBillBook’s billing and invoicing solution, businesses can prepare invoices, maintain transaction records and track outstanding payments.

Businesses dealing with frequent goods movement can also explore e-Way Bill software to manage the documentation associated with goods transportation.

For more information on classifying transport expenses, refer to the freight charges SAC code guide.