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SAC Code for Freight and Transport Charges
Goods transport services, including freight and transportation charges, fall under SAC 9965. Road transport of goods is 996511. The GST rate depends on who transports the goods: a goods transport agency (GTA) charges 5% or 18%, while an individual truck owner who does not issue a consignment note is generally exempt.
- SAC code
- 9965
- GST rate
- 5% / 18%
- Rates as of
- GST 2.0 (from 22 Sep 2025)
- Last checked
Freight & Transport Charges SAC code list with GST rates
| SAC code | Description | GST |
|---|---|---|
| 996511 | Road transport of goods by a GTA, reverse charge (paid by recipient) | 5% |
| 996511 | Road transport of goods by a GTA, forward charge without ITC | 5% |
| 996511 | Road transport of goods by a GTA, forward charge with ITC (from 22 Sep 2025, earlier 12%) | 18% |
| 996511 | Road transport by a non-GTA transporter (no consignment note) | Exempt |
| 996531 | Air transport of goods (domestic) | 18% |
Freight charges on your invoice
If you charge freight to your customer as part of a sale, the freight follows the GST rate of the goods sold (composite supply), and you use the HSN code of the goods, not 9965.
Use SAC 9965/996511 when you supply transport as a separate service.
GTA options
A GTA chooses forward charge for the year by filing Annexure V before the year begins; otherwise the default is reverse charge at 5%, paid by a registered recipient such as a factory, company or registered business.