--- title: "New GST on Courier Services 2026: 18% Rate on Courier, Delivery" description: "New GST rate on courier services in 2026 is 18% on parcel delivery, express courier and logistics. Use Busy to auto-apply the correct GST on every invoice." canonical: "https://busy.in/gst-rates/courier-services/" author: "Hitesh Aggarwal" published: "2025-07-21T07:00:25.000Z" category: "GST Rates" --- - The **gst on courier services** is generally **18% in India** for private courier and express delivery services classified under **SAC 996812**. - GST treatment for courier services depends on the type of service, location of supply, and applicable GST provisions. International courier services may have different tax treatment based on place-of-supply rules. - Businesses can claim Input Tax Credit (ITC) on courier charges if the service is used for business purposes and other GST conditions are satisfied. - GST-compliant invoices are required for B2B transactions to claim eligible ITC. B2C customers generally cannot claim ITC on courier services. # New GST on Courier Services: Rate by Delivery Type & B2B Implications Courier services are essential for businesses, especially in the age of e-commerce, same-day delivery, and global trade. But when it comes to billing and compliance, understanding the [**GST**](https://busy.in/gst/) on courier services is crucial. Whether you’re a logistics provider, an online seller, or a customer receiving goods, knowing the applicable tax rates, HSN codes, and [**Input Tax Credit (ITC)**](https://busy.in/gst/input-tax-credit/) rules can help you manage costs and stay compliant. ## **New GST Rate on Courier & Postal Services in India** The applicable GST rate for courier and postal services depends on the type of service and the applicable GST classification. Most private courier services in India attract **18% GST** under SAC 996812. ## GST Rate on Courier Charges by Service Type | Courier Service Type | GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | Tax Type | | --- | --- | --- | --- | | Domestic private courier services | 18% | 18% | CGST + SGST / IGST | | International courier services | 18% (where applicable) | 18% (where applicable) | IGST where applicable | | Specified exempt postal services provided by India Post | Exempt | Exempt | — | **Note:** No major GST rate change has been introduced for courier services after 22 Sep 2025. The applicable rate continues to depend on the type of service and GST classification. ## **Is GST Applicable on Courier Services?** Yes, GST is applicable on most courier services in India. - The **courier gst rate** for private courier services is generally **18%**. - GST is charged on the taxable value of courier charges, which may include applicable service-related charges. - Businesses can claim Input Tax Credit on courier charges used for business purposes, subject to applicable GST conditions. Live Demo Available Today ## Track Client-Wise Courier Billing Without Chasing Records Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## HSN Code for Courier Services Courier and express parcel delivery services fall under the SAC Code 996812. | Service Description | SAC Code | GST Rate | | --- | --- | --- | | Courier and express parcel services | 996812 | 18% | | Postal services (excluding specified exempt services) | 996811 | Applicable GST rate based on service classification | Certain postal services provided by the Department of Posts may be exempt under GST provisions. ## Input Tax Credit (ITC) for Businesses Businesses that use courier services for official or commercial purposes can [**claim Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on the GST paid. To claim ITC: - The business must be [**GST-registered**](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) . - The invoice should contain the correct [**GSTIN**](https://busy.in/gst/gstin-everything-you-need-to-know/) , SAC code, and tax breakup. - The courier service must also be registered under GST and file returns regularly. However, ITC is not available if the courier service is used for: - Personal deliveries - Free samples or gifts - Employee reimbursements (not linked to business) ## B2B vs B2C Implications **For B2B (Business-to-Business):** - GST is applicable at 18% - Eligible for ITC - Must issue [**GST-compliant invoices**](https://busy.in/gst/a-guide-to-invoicing-under-gst/) **For B2C (Business-to-Consumer):** - 18% GST charged but no ITC available to the customer - Businesses must report B2C transactions in their [**GST returns**](https://busy.in/gst/gst-returns/) Understanding the **courier GST rate** helps you ensure transparency in shipping charges and tax calculation. ## Conclusion Understanding the [**Goods and Services Tax (GST)**](https://busy.in/gst/) on courier services is vital for businesses, especially those involved in shipping goods domestically or internationally. With a standard GST rate of 18% on courier charges, correct invoicing and the appropriate [**Service Accounting Code (SAC)**](https://busy.in/sac-codes/) usage are essential for smooth compliance. Businesses can also benefit from [**Input Tax Credit (ITC)**](https://busy.in/gst/input-tax-credit/) to reduce their tax liability, while consumers should be aware of the tax component included in shipping costs. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## About the author **Hitesh Aggarwal** As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience. ## Frequently asked questions ### What is the gst for courier services in India? Most private courier services attract **18% GST.** ### Are postal services like Speed Post taxable under GST? Certain postal services provided by India Post are **exempt from GST**. The applicable GST treatment depends on the type of postal service provided. ### Can I claim ITC on courier charges for my e-commerce business? Yes, if the courier invoice includes your GSTIN and the service is used for business purposes. ### What is the SAC code for courier services under GST? The SAC code is **996812** for courier and express parcel services. ### Does GST apply to international couriers? International courier services may attract **IGST at the applicable rate** depending on the place of supply and GST provisions. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)