{"id":11144,"date":"2026-10-19T08:22:17","date_gmt":"2026-10-19T08:22:17","guid":{"rendered":"https:\/\/mybillbook.in\/blog\/?page_id=11144"},"modified":"2026-10-19T08:25:39","modified_gmt":"2026-10-19T08:25:39","slug":"freight-charges","status":"publish","type":"page","link":"https:\/\/mybillbook.in\/blog\/sac-code\/freight-charges\/","title":{"rendered":"Freight Charges SAC Code &amp; GST Rate in India"},"content":{"rendered":"<p>\n\n\n<p class=\"wp-block-paragraph\">The <strong>SAC code for freight charges is 9965<\/strong>, which covers goods transportation services by road, rail, water and air. Freight charges are classified under SAC (Services Accounting Code), not HSN, because transportation is a service. The applicable GST rate depends on the transport mode, service provider and tax-payment arrangement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is the SAC Code for Freight Charges?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Freight charges generally fall under <strong>SAC heading 9965 \u2013 Goods Transport Services<\/strong> when transportation is supplied as a separate service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">SAC codes are used to classify services under GST, whereas HSN codes are used for goods. The exact six-digit SAC code depends on how the goods are transported.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Particular<\/th><th>Details<\/th><\/tr><tr><td>Service<\/td><td>Freight charges \/ transportation of goods<\/td><\/tr><tr><td>SAC heading<\/td><td><strong>9965<\/strong><\/td><\/tr><tr><td>Service category<\/td><td>Goods Transport Services<\/td><\/tr><tr><td>Classification type<\/td><td>SAC, not HSN<\/td><\/tr><tr><td>Common transport modes<\/td><td>Road, rail, water and air<\/td><\/tr><tr><td>GST rate<\/td><td>Depends on the transport service and applicable conditions<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">SAC Codes for Different Types of Freight Charges<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The official GST service classification provides separate SAC codes for different modes of goods transportation.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Freight service<\/th><th>SAC code<\/th><\/tr><tr><td>Road transportation of goods<\/td><td><strong>996511<\/strong><\/td><\/tr><tr><td>Railway transportation of goods<\/td><td><strong>996512<\/strong><\/td><\/tr><tr><td>Transportation of goods through pipelines<\/td><td><strong>996513<\/strong><\/td><\/tr><tr><td>Other land transportation of goods<\/td><td><strong>996519<\/strong><\/td><\/tr><tr><td>Coastal and overseas water transportation of goods<\/td><td><strong>996521<\/strong><\/td><\/tr><tr><td>Inland water transportation of goods<\/td><td><strong>996522<\/strong><\/td><\/tr><tr><td>Air transportation of goods<\/td><td><strong>996531<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">These codes classify the service. They do not determine the GST rate independently.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GST Rate on Freight Charges in India<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Freight charges do not have one uniform GST rate. The tax treatment depends on whether the service is provided by a Goods Transport Agency (GTA), an ordinary road transporter or another transport service provider.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Freight service<\/th><th>GST treatment<\/th><\/tr><tr><td>GTA transportation of goods by road<\/td><td><strong>5% without ITC or 18% with full ITC<\/strong>, subject to conditions<\/td><\/tr><tr><td>Road transportation by a person other than a GTA or courier agency<\/td><td>Generally <strong>Nil (exempt)<\/strong><\/td><\/tr><tr><td>Inland water transportation of goods<\/td><td>Generally <strong>Nil (exempt)<\/strong><\/td><\/tr><tr><td>Rail freight<\/td><td>Rate depends on the applicable service entry and conditions<\/td><\/tr><tr><td>Air freight<\/td><td>Rate depends on the route and applicable exemptions<\/td><\/tr><tr><td>Multimodal goods transportation within India<\/td><td><strong>5% with restricted ITC<\/strong> where no air leg is involved; <strong>18% with full ITC<\/strong> where an air leg is involved, subject to conditions<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The GST treatment should be verified against the applicable notification before preparing an invoice, particularly for specialised transport arrangements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Goods Transport Agency (GTA) Services<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A Goods Transport Agency is a person who provides road transportation services for goods and issues a consignment note.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under the revised GST rate structure effective from 22 September 2025, GTA services may be taxed at:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>5% GST without ITC<\/strong> on goods and services used to provide the GTA service, subject to applicable conditions.<\/li>\n\n\n\n<li><strong>18% GST with full ITC<\/strong> when the GTA chooses the applicable forward-charge option.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Whether GST is paid by the GTA or by the recipient depends on the applicable forward-charge and reverse-charge provisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Road Transport Services Other Than GTA<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Transportation of goods by road by a person other than a GTA or courier agency is generally exempt from GST.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, an independent truck operator providing a qualifying road transportation service without issuing a consignment note may fall under this exemption.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, businesses should evaluate the actual service arrangement rather than relying only on the description used in an invoice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is GST on Freight Charges Paid Under Reverse Charge?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Certain GTA services are covered by the <strong>Reverse Charge Mechanism (RCM)<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under reverse charge, the recipient of the service, rather than the GTA, is responsible for paying GST to the government.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">RCM applicability depends on factors such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Whether the transporter qualifies as a GTA.<\/li>\n\n\n\n<li>Whether the recipient falls within the notified categories.<\/li>\n\n\n\n<li>Whether the GTA has opted to pay GST under forward charge.<\/li>\n\n\n\n<li>Whether a specific exemption applies.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Reverse charge does not apply automatically to every freight transaction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is GST Applicable When Freight Charges Are Added to a Goods Invoice?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Freight included in a seller&#8217;s goods invoice may have a different GST treatment from freight billed separately by a transporter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under Section 15 of the CGST Act, incidental expenses and amounts charged for activities undertaken by the supplier before or at delivery can form part of the taxable value of goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, suppose a seller supplies electrical equipment worth \u20b950,000 and charges \u20b92,000 for delivery as part of the same supply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the delivery charge forms part of the taxable value of the goods supply, the applicable GST treatment follows that supply rather than automatically applying the GTA freight rate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The classification depends on the contractual arrangement and whether the transportation is an independent service or part of the goods supply.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Calculate GST on Freight Charges<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose a GTA provides a taxable freight service worth \u20b910,000 and the applicable GST rate is 5%.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Particular<\/th><th class=\"has-text-align-right\" data-align=\"right\">Amount<\/th><\/tr><tr><td>Freight charges<\/td><td class=\"has-text-align-right\" data-align=\"right\">\u20b910,000<\/td><\/tr><tr><td>GST at 5%<\/td><td class=\"has-text-align-right\" data-align=\"right\">\u20b9500<\/td><\/tr><tr><td>Total including GST<\/td><td class=\"has-text-align-right\" data-align=\"right\"><strong>\u20b910,500<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">For an intra-state transaction, the tax would be \u20b9250 CGST and \u20b9250 SGST.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an inter-state transaction, \u20b9500 IGST would apply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Note:<\/strong> This calculation shows the tax amount only. Where RCM applies, the recipient pays GST directly to the government, and the GTA&#8217;s invoice treatment differs accordingly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Identify the Correct SAC Code for Freight Charges<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses should identify the nature of the transportation service before selecting a SAC code.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, determine whether the goods are transported by road, rail, water or air.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next, check whether the service provider qualifies as a GTA, especially for road freight.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then identify the correct six-digit SAC code and review the applicable GST rate, exemption, ITC conditions and reverse-charge provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For freight added to a goods invoice, assess whether the charge forms part of the goods supply or represents a separate transportation service.<\/p>\n\n\n\t\t<div class=\"wp-faq-schema-wrap\">\n\t\t\t\t\t\t\t<h2>Frequently Asked Questions<\/h2>\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<h3>What is the HSN code for freight charges?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>Freight charges do not have a goods HSN code when supplied as a transportation service. They fall under SAC heading 9965, with the exact six-digit code depending on the transport mode.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What is the SAC code for road freight charges?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>The SAC code for road transportation of goods is 996511. The GST treatment depends on whether the supplier is a GTA, courier agency or another road transporter.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What is the GST rate on GTA freight charges?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>GTA freight services may attract 5% GST without ITC or 18% GST with full ITC, subject to the applicable conditions and tax-payment option.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>Are freight charges exempt from GST?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>Some freight services are exempt. For example, qualifying road transportation by a person other than a GTA or courier agency is generally exempt. Other exemptions depend on the service and relevant notification.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n\n\n\n<h2 class=\"wp-block-heading\">Official Sources<\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.gstcouncil.gov.in\/sites\/default\/files\/2024-02\/scheme_of_classification_of_services_amended.pdf\">GST Council \u2013 Scheme of Classification of Services<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2163566\">Press Information Bureau \u2013 September 2025 GST Rate Changes<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/cbic-gst.gov.in\/hindi\/gst-goods-services-rates.html\">CBIC \u2013 GST Rates and Exemptions for Services<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/cbic-gst.gov.in\/CGST-bill-e.html\">CBIC \u2013 Central Goods and Services Tax Act, 2017<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/services.gst.gov.in\/services\/searchhsnsac\">GST Portal \u2013 Search HSN\/SAC Code<\/a><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Last Reviewed: 19 October 2026<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SAC code for freight charges is 9965, which covers goods transportation services by road, rail, water and air. Freight [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":11106,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"plain-container","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-11144","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Freight Charges SAC Code &amp; GST Rate in India<\/title>\n<meta name=\"description\" content=\"Check freight charges SAC code 9965 and GST rates in India. 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