The transport hsn code for moving goods is SAC 9965, and GST on transport charges is usually 5% without input tax credit or 18% with credit when the transporter is a goods transport agency. Who pays the tax depends on who receives the service: in many business cases the recipient pays it under reverse charge.
This hub covers every kind of transport bill: GTA, rail, air cargo, vehicle hire with a driver and passenger transport. It also links the detailed pages for freight charges, courier charges, packing and forwarding, tour and travel and air tickets.
Transport charges: codes and GST rates
Item / SAC / GST- Goods transport agency (GTA), forward charge at 5%5% (no ITC)GTA charges tax; no credit on inputs
- GTA opting for 18%18%Full input tax credit for the GTA
- GTA service to specified recipients under reverse charge5%Recipient pays the tax
- Transport of goods by an individual truck owner, no consignment noteExemptNot a GTA service
- Transport of goods by rail5%Credit of input services allowed
- Renting a goods carriage with operator, fuel included5% or 18%Entry 10(ia), as amended by 15/2025
- Renting a passenger vehicle with operator, fuel included5% or 18%5% without credit or 18% with credit
- Transport of passengers by AC contract carriage or radio taxi5% (no ITC)Heading 9964
- Transport of goods by air or sea within India18%Domestic cargo
Quick facts
SAC heading
9965 goods transport, 9964 passengers, 9966 vehicle hire with operatorGST rate for GTA
5% without credit or 18% with creditReverse charge
Applies to GTA at 5% when the recipient is a factory, company, firm, registered person or similarDocument
The consignment note decides whether it is GTA serviceDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
9967 (that is for loading, warehousing and other support services)
Transport hsn code and gst rate by service
| Service | SAC | GST |
|---|---|---|
| Goods transport by road (GTA) | 996511 | 5% (no ITC) or 18% |
| Goods transport by rail | 996512 | 5% |
| Goods transport by inland water | 996513 | 5% |
| Goods transport by air, domestic | 996531 | 18% |
| Coastal goods transport by ship | 996521 | 5% |
| Passenger transport by road, AC or radio taxi | 996412 | 5% (no ITC) |
| Rental of passenger vehicle with driver | 996601 | 5% or 18% |
| Rental of goods carriage with driver | 996602 | 5% or 18% |
| Cargo handling, loading and unloading | 996711 | 18% |
| Warehousing of goods | 996729 | 18% |
Transport sac code 9965 and the GTA rules
Under GST, a goods transport agency means a road transporter that hands over a consignment note (the bilty or LR) for the load. That document is the test: without it, moving goods by truck is not a GTA service at all.
- 5% option: the GTA charges 5% and cannot take input tax credit on trucks, tyres or diesel related services. In many cases the recipient pays the 5% under reverse charge instead of the GTA.
- 18% option: the GTA charges 18% under forward charge and takes full credit. The GTA chooses this option for a financial year by filing a declaration on the GST portal.
- Reverse charge recipients: factories, companies, firms, registered persons, societies, and some others pay the GST under reverse charge when the GTA has not opted for forward charge.
A lone truck operator moving a load with no bilty is outside the GTA definition, and that carriage is exempt.
Gst on transportation of goods by other modes
Rail freight is 5% with credit of input services. Domestic air cargo is 18%. Coastal shipping and inland waterways are 5%. Transport of goods for export by air or sea out of India has its own place of supply rules; check the entry if you move export cargo. Agricultural produce, milk, salt and food grains carried by road have exemptions in some cases, so check the exemption notification for those loads.
Renting vehicles with a driver: 9966
When you hire a truck, tempo or car with its driver for a period, it is renting under 9966, not transport under 9965. After the reform, renting a goods carriage with fuel included is taxed at 5% with credit of input services in the same line, or at 18% with full credit. Renting a motor vehicle for passengers with fuel included is 5% without credit or 18% with credit. Taxi and cab bills to businesses often fall here; tour packages are on the tour and travel page.
Transport charges on a sales invoice
When a seller delivers goods and adds a transport line to the same bill, that charge is part of the value of the goods, and it takes the HSN rate of the goods. A cement dealer who adds Rs 1,000 for delivery charges 18% on it, because cement is 18%. The 5% GTA rate applies only when a transporter bills for transport as a separate service.
Sample GTA bill under reverse charge: Freight from depot to factory, SAC 996511, consignment note no. 418, taxable value Rs 30,000. GST payable by recipient under reverse charge at 5%: Rs 1,500. The bill states that tax is payable on reverse charge.
E-way bill and transport
The e-way bill is needed when goods worth more than Rs 50,000 move by road, with some state variations for movement within the state. Part B of the form holds the truck details or the transporter ID. The transport service itself does not need an e-way bill; the goods do.
Transport charges gst rate: common mix-ups
| Problem | Fix |
|---|---|
| GTA charging 18% without opting | File the option for the year, or charge 5% |
| Recipient not paying RCM on GTA bill | Pay the 5% in cash and take credit if eligible |
| Delivery charge on a goods bill billed at 5% | It follows the rate of the goods |
| Truck hired with driver billed as GTA | Use 9966 renting rules when there is no consignment note and the vehicle is hired for a period |
Read this as general information on transport services. Reverse charge and exemptions turn on the facts of each load and on entries that the Council changes, so confirm with the latest services notification and get a GST practitioner or chartered accountant to look at your own arrangements.
Frequently asked questions
What is the hsn code for transport charges?
Goods transport by road is SAC 996511 under heading 9965. Passenger transport is 9964 and hire of vehicles with a driver is 9966.
What is the GST rate on transport services?
A goods transport agency charges 5% without credit or 18% with credit. Rail freight is 5%, domestic air cargo 18% and AC passenger transport by road 5%.
Who pays GST on transportation charges?
When a GTA charges 5% and the recipient is a factory, company, firm or registered person, the recipient usually pays under reverse charge. If the GTA opted for 18%, the GTA charges it on the bill.
Is GST charged when a truck owner carries goods without a bilty?
No. When no bilty is issued and the carrier is not a GTA, the service is exempt from GST.
What rate applies to delivery charges on a sales bill?
The same rate as the goods sold, because delivery is part of the value of a composite supply of goods.