Courier Charges HSN Code for GST Filing
Courier and express delivery services are widely used by traders, online sellers and service providers to move documents and parcels across cities and countries.
Understanding the courier charges HSN code and the GST rate on these services helps you raise correct invoices and claim input tax credit without dispute.
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How Are Courier Services Classified Under HSN Code for GST?
Courier charges fall under the services classification that covers courier and express parcel services. These are service accounting codes that work like HSN codes for services under GST.
The same service code generally covers both domestic and international courier services , while transport of goods by road or air cargo uses different service codes.
Courier Charges SAC Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
4 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 9963 | Other Accommodation, food and beverage services | 18% |
| 9965 | Other Goods transport services | 18% |
| 9967 | Other Supporting services in transport | 18% |
| 9968 | SAC heading 9968 | |
| 9971 | Other Financial and related services | 18% |
| 9988 | Other Manufacturing services on physical inputs (goods) owned by others | 18% |
6 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 996331 | Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food. | 18% |
| 996332 | Services provided by Hotels, INN, Guest House, Club etc including Room services, takeaway services and door delivery of food. | 18% |
| 996742 | Operation services of National Highways, State Highways, Expressways, Roads & streets; bridges and tunnel operation services. | 18% |
| 996811 | Postal services including post office counter services, mailbox rental services. | 18% |
| 996812 | Courier services | 18% |
| 996813 | Local delivery services | 18% |
| 996819 | Other Delivery Services n.e.c | 18% |
* GST rates may vary based on the latest GST notifications and amendments
What Is the GST Rate for Courier Services and Shipping Charges?
Courier and express delivery services are normally taxed at 18% under GST. This rate applies to most courier bills raised to business customers and final consumers.
When a seller charges shipping or delivery on an invoice for goods and uses a courier service in the background, the shipping charge usually takes the same GST rate as the goods if it is part of a composite supply .
If shipping is billed separately as a pure service, businesses often apply the standard 18% slab that applies to courier and similar delivery services.
Why Do Courier Charges Have Specific HSN Codes?
Courier services are quite different from general goods transport because they focus on small parcels and time bound delivery. A separate service code helps tax authorities track revenue from courier activities and frame specific rules if needed.
Having a specific courier charges HSN code also makes it easier for businesses to identify eligible input tax credit on courier bills used for business, since the service appears clearly in the purchase register and in GSTR two B.
For registered courier companies, correct use of the service code ensures that all their outward supplies are grouped correctly in GSTR one and that clients can match the same in their credit statements.
How to Classify Courier and Shipping Charges for GST Filing?
If you are a courier service provider, you should use the designated courier service code on all tax invoices and apply 18% GST, unless a specific exemption applies to a particular customer or service.
If you are a trader or online seller charging shipping or delivery on invoices, decide whether this charge forms part of a composite supply of goods or is a separate service, and apply the rate accordingly.
In your returns, ensure that outward supplies under courier service codes appear in the correct table and that the taxable value and tax match your sales register.
For international courier services, check the place of supply rules. If the supply qualifies as export of services and conditions are met, you may charge zero tax while still using the same service code and report it as export.
Conclusion
Courier charges HSN code places domestic and international courier and express delivery services in a specific service category that normally attracts 18% GST.
By using the right service code, applying the correct GST rate on courier and shipping charges and checking that the same details flow into your GST returns , you can protect your input tax credit and keep your logistics related compliance smooth.
