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.
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.
| HSN Code | Product Name | Product Description | GST Rate |
|---|---|---|---|
| 996812 | Courier services | Door to door document and parcel delivery services by courier companies | 18% |
| 996813 | Express parcel services | Time bound express parcel and package delivery services | 18% |
| 996819 | Other delivery services | Other supporting transport and delivery services not elsewhere classified | 18% |
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.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions
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What is the HSN code for courier charges?
Courier charges are classified under the service code that covers courier and express parcel services. This code is used in place of a goods HSN for GST on services.
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Are courier services and shipping charges classified under the same HSN code?
Courier services use specific courier service codes, while shipping charges on sale of goods may follow the goods rate if they form part of a composite supply. The correct treatment depends on how the invoice is structured.
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What is the GST rate for courier services?
Most courier and express delivery services attract GST at 18%, which is the standard rate for such business support services unless a special exemption applies.
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Why do courier charges have their own service codes?
Separate service codes for courier activities help in tracking the sector, applying clear rules for input tax credit and return reporting, and distinguishing these services from general transport of goods.
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Are international courier services classified differently for GST?
International courier services normally use the same service code, but the tax treatment can differ if the service qualifies as export of services or is billed to a customer located outside India.