The courier charges hsn code is SAC 996812, and GST on courier services is 18%. Local delivery services use 996813 and other delivery services 996819, both also at 18%. Speed post and parcel services of the postal department are taxable at 18%, while basic postal services such as letters and post cards are exempt.
Delivery charges added to a sales invoice are different: they are part of the price of the goods and take the goods' rate. This page explains the codes, the delivery charges rule and a courier firm's bill. The transport hub is transport charges.
Courier and postal: codes and GST rates
Item / SAC / GST- Courier services18%SAC 996812
- Local delivery services18%SAC 996813
- Postal services: speed post, parcels18%SAC 996811
- Basic postal services by the Department of PostsExemptLetters, post cards, inland letters
- Other delivery services18%SAC 996819
- Delivery charges on a sales invoiceAs the goodsPart of the value of goods
- Express cargo by air within India18%Domestic air cargo
Quick facts
SAC heading
9968: postal and courier servicesGST rate
18% (9% CGST + 9% SGST)Exempt
Basic postal services such as letters and post cardsDelivery on sales bill
Takes the goods rateDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
9965 (goods transport) for courier
Courier charges hsn code list
| Code | Service | GST |
|---|---|---|
| 996811 | Postal services, including speed post and parcels | 18% |
| 996811 | Basic postal services: letters, post cards, inland letters | Exempt |
| 996812 | Courier services, documents and parcels | 18% |
| 996813 | Local delivery services | 18% in general |
| 996819 | Other delivery services | 18% |
Gst on courier services
Courier companies, franchisees and logistics firms charge 18% on courier services. The rate applies to documents and parcels, domestic or international, as long as the place of supply is in India. Fuel surcharge, insurance and handling fees added to a courier bill are part of the courier service and taxed at 18%.
Delivery charges hsn code
If a seller delivers goods to the buyer and adds a delivery charge on the same invoice, the charge is part of a composite supply of goods. It takes the goods' HSN and rate. A furniture shop that adds Rs 500 delivery charges 18%, because furniture is 18%; a grocery store adding delivery on nil rated vegetables charges no GST on that delivery. A separate delivery firm that bills the buyer for delivery charges 18% under 996813.
App based local delivery
Deliveries booked through an e-commerce app have been given separate treatment by an amendment that took effect on 1 November, roughly thirteen months after the two-slab change, setting a lower rate without credit for certain app based delivery services. If you deliver through an app or run a delivery app, read that entry before choosing a rate; ordinary courier services stay at 18%.
Courier or goods transport
Courier services move documents and small parcels on a time bound basis with tracking. Goods transport by road under a consignment note is GTA service under SAC 9965 at 5% or 18%. A bulk cargo movement by truck is transport, not courier, even if a courier company handles it. See freight.
Courier firm's invoice
Courier company to an online seller: Courier services for the month, 1,200 parcels, SAC 996812, taxable value Rs 84,000. CGST 9% Rs 7,560. SGST 9% Rs 7,560. Total Rs 99,120.
Courier GST paid for business shipments can be claimed as credit by a registered buyer. Franchisees bill the head company or customers depending on their agreement; each must charge 18% on its own share of the service.
Packing and handling with courier
Packing done by a courier firm before shipping is part of the courier service. Packing charges on a seller's invoice follow the goods; see packing charges. Air tickets and passenger travel are covered on the air travel page.
Courier charges gst rate errors
| Problem | Fix |
|---|---|
| Courier billed under 9965 at 5% | Courier is 9968 at 18% |
| GST charged on letters by post | Basic postal services are exempt |
| Delivery on a goods bill at 18% for 5% goods | Delivery follows the goods rate on a composite bill |
| Fuel surcharge left out of taxable value | It is part of the courier service |
Courier firms and online sellers should read this as a broad summary of entry 12 of the services notification as amended by 15/2025-Central Tax (Rate). Composite supplies depend on the facts, so check the GST portal and ask a GST practitioner or chartered accountant about your delivery terms.
Frequently asked questions
What is the hsn code for courier charges?
Courier services are SAC 996812, at 18%.
What is the GST rate on courier services?
18%. Basic postal services such as letters and post cards are exempt.
What is the delivery charges hsn code?
On a sales invoice, delivery takes the goods' code and rate. A separate delivery service is SAC 996813 at 18%.
What is the 9968 hsn code?
9968 is postal and courier services, at 18%.
Is GST charged on speed post?
Yes. Speed post and parcel services are taxable at 18%.