The SAC code for road transport services involving goods is 996511, under heading 9965. The GST rate depends on the transporter: qualifying non-GTA road transport is generally exempt, while Goods Transport Agency (GTA) services may attract 5% or 18% GST, subject to conditions.
Road transport is a service, so it is classified using a SAC (Services Accounting Code) rather than an HSN code. Passenger road transport uses separate codes under heading 9964.
What Is the SAC Code for Road Transport Services?
Road transportation of goods is classified under SAC 996511, which covers goods transported by trucks, trailers, refrigerated vehicles and other road vehicles.
| Particular | Details |
|---|---|
| Service | Road transportation of goods |
| SAC code | 996511 |
| SAC heading | 9965 – Goods transport services |
| SAC group | 99651 – Land transport services of goods |
| GST rate | Nil, 5% or 18%, depending on the service |
| Classification type | SAC, not HSN |
The code identifies the service. It does not, by itself, determine whether GST is payable.
Services Covered Under SAC 996511
SAC 996511 covers road transportation of different types of goods.
| Road transport service | Examples | SAC code |
| Commercial goods transportation | Moving products from a warehouse to a distributor | 996511 |
| Truck transportation | Carrying industrial goods using trucks or trailers | 996511 |
| Refrigerated road transportation | Transporting perishable goods in refrigerated vehicles | 996511 |
| Household goods transportation | Moving furniture and household belongings by road | 996511 |
| Container transportation by road | Transporting containers using road vehicles | 996511 |
| Livestock transportation by road | Moving live animals using suitable vehicles | 996511 |
These examples describe the service classification. The applicable GST treatment depends on the transporter, consignment note, exemptions and contractual arrangement.
GST Rate on Road Transport Services in India
Road transportation of goods does not have one uniform GST rate.
| Type of road transport service | GST treatment |
| Transportation of goods by a person other than a GTA or courier agency | Generally exempt (Nil) |
| GTA service under the 5% arrangement | 5% without ITC, subject to conditions |
| GTA service under the 18% forward-charge option | 18% with full ITC, subject to conditions |
| Courier services | Generally 18%, under a separate classification |
The revised GTA rate structure took effect from 22 September 2025, replacing the earlier 12% option with 18% where the GTA elects the higher-rate arrangement.
GST on Goods Transport Agency (GTA) Services
A Goods Transport Agency is a person who provides road transportation services for goods and issues a consignment note.
GTA services may attract:
- 5% GST without ITC, subject to the applicable restrictions.
- 18% GST with full ITC when the GTA exercises the applicable forward-charge option.
The person responsible for paying GST depends on whether the service falls under reverse charge or forward charge.
GST on Road Transport Services Other Than GTA
Transportation of goods by road by a person other than a GTA or courier agency is generally exempt from GST.
For example, a qualifying independent truck operator providing transportation services without issuing a consignment note may fall under the exemption.
However, the actual service arrangement must be considered. The absence of a GST registration number alone does not establish that the service is exempt.
What Is the Difference Between GTA and Non-GTA Road Transport?
The distinction between GTA and non-GTA road transportation is important for GST.
| Particular | GTA | Non-GTA road transporter |
| Service | Transportation of goods by road | Transportation of goods by road |
| Consignment note | Issued | Generally not issued |
| SAC code | 996511 | 996511 |
| GST treatment | 5% or 18%, subject to conditions | Generally exempt |
| Reverse charge | May apply | GTA-specific RCM does not apply |
Both may provide road transportation services under the same SAC code, but their GST treatment differs.
Is GST on Road Transport Services Paid Under Reverse Charge?
Certain GTA services are covered by the Reverse Charge Mechanism (RCM).
Under RCM, the notified recipient of the GTA service pays GST to the government instead of the GTA.
RCM applicability depends on the recipient category, the GTA’s tax-payment option and the relevant notifications.
For example, a registered business receiving a taxable GTA service may need to assess whether it is liable under RCM.
However, not every road transportation transaction attracts reverse charge. Exempt non-GTA transportation should not automatically be treated as a GTA service.
GST Calculation Example for Road Transport Charges
Suppose a GTA charges ₹10,000 for transporting goods and the applicable GST rate is 5%.
| Particular | Amount |
| Transportation charges | ₹10,000 |
| GST at 5% | ₹500 |
| Total including GST | ₹10,500 |
For an intra-state supply, the tax is ₹250 CGST and ₹250 SGST.
For an inter-state supply, ₹500 IGST generally applies, subject to the place-of-supply rules.
Important: This is a tax calculation example. If RCM applies, the recipient pays the GST to the government rather than paying that tax amount to the transporter.
SAC Codes for Road Passenger Transport Services
Road passenger transportation uses different SAC codes from goods transportation.
| Passenger transport service | SAC code |
| Local land transport of passengers by bus and other motor vehicles | 996411 |
| Local taxi services | 996412 |
| Non-scheduled local bus and coach charter services | 996413 |
| Long-distance road passenger transport by bus or car | 996422 |
| Long-distance taxi services | 996423 |
These services fall under heading 9964 – Passenger transport services.
Their GST rates and exemptions depend on the type of vehicle, service arrangement and applicable notification. The GST rate for goods transportation should not be applied to passenger transportation.
Difference Between Road Transport and Related Services
Businesses should distinguish road transportation from courier, local delivery and supporting transport services.
| Service | SAC code or heading |
| Road transportation of goods | 996511 |
| Courier services | 996812 |
| Local delivery services | 996813 |
| Supporting services in transport | 9967 |
| Passenger road transportation | 9964 |
For example, a GTA transporting goods between cities generally falls under SAC 996511.
A courier agency collecting and delivering parcels may instead fall under SAC 996812.
Loading, warehousing and other supporting activities may require classification under heading 9967 or another relevant heading, depending on the actual service.
How to Identify the Correct SAC Code for Road Transport Services
First, determine whether the service involves transporting goods or passengers.
For goods transportation by road, SAC 996511 generally applies.
Next, identify whether the service provider qualifies as a GTA and whether a consignment note is issued.
Then check whether the supply is exempt, taxable under forward charge or subject to reverse charge.
Finally, verify the applicable GST rate and invoice requirements using the latest official GST notifications.
FAQs About Road Transport Services SAC Codes
What is the SAC code for road transport services?
The SAC code for road transportation of goods is 996511. Passenger road transport uses separate codes under heading 9964.
What is the GST rate on road transportation of goods?
Qualifying non-GTA road transportation is generally exempt. GTA services may attract 5% without ITC or 18% with full ITC, subject to the applicable conditions.
Is road transport exempt from GST?
Road transportation of goods by a person other than a GTA or courier agency is generally exempt. GTA and courier services have separate GST provisions.
Is SAC 9967 the correct code for road transport services?
No. Heading 9967 covers supporting services in transport. Road transportation of goods is classified under SAC 996511.
Manage Road Transport Invoices with myBillBook
Transporters, wholesalers and distributors need accurate records of transportation charges, customer payments and applicable GST.
With myBillBook billing software, businesses can create GST invoices, maintain customer records and track payments.
Selecting the correct SAC code and GST treatment helps maintain accurate transportation billing records.
Official Sources
- GST Council – Scheme of Classification of Services
- GST Council – Explanatory Notes to the Scheme of Classification of Services
- GST Council – September 2025 GST Rate Clarifications
- CBIC – GST Rates and Exemptions for Services
- GST Portal – Search HSN/SAC Code
Last Reviewed: 22 October 2026
