New GST on Courier Services: Rate by Delivery Type & B2B Implications
- 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.
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 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) rules can help you manage costs and stay compliant.
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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 | — |
Courier Service Type
GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Tax Type
Courier Service Type
GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Tax Type
Courier Service Type
GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Tax Type
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.
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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 |
Service Description
SAC Code
GST Rate
Service Description
SAC Code
GST Rate
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 on the GST paid.
To claim ITC:
- The business must be GST-registered .
- The invoice should contain the correct GSTIN , 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
For B2C (Business-to-Consumer):
- 18% GST charged but no ITC available to the customer
- Businesses must report B2C transactions in their 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) 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) usage are essential for smooth compliance. Businesses can also benefit from Input Tax Credit (ITC) to reduce their tax liability, while consumers should be aware of the tax component included in shipping costs.
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