Courier HSN Code: Classification for Courier and Shipping Services
Courier services play a key role in e commerce and business supply chains. They handle door to door delivery of documents, parcels and small consignments within India and across borders. Under GST, courier activity is treated as a service and is classified under a Service Accounting Code rather than a goods HSN code.
Most private courier and express parcel services fall under SAC 9968, which covers postal and courier services. These services generally attract 18 % GST. Correctly using the courier HSN or SAC code on invoices helps service providers and their customers match tax credits and comply with return filing rules.
Book A Demo
What is the HSN Code for Courier Services?
For GST purposes, courier services are usually classified under SAC 9968. This code covers collection, transport and delivery of letters, documents and parcels carried by courier companies and express operators. Government postal services may be treated differently, but private courier agencies generally fall under this heading.
Courier 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
How Courier Services are Classified under HSN
Courier services are classified based on the nature of their activity rather than the size or weight of the parcel. If a company collects parcels from customers, transports them through its network and delivers them to the receiver, it is normally treated as a courier service under SAC 9968. The same classification applies whether the parcel is a small document or a medium sized package.
If a business only arranges transportation of goods through trucks or containers without providing door to door collection and delivery, it may fall under the category of goods transport agency or freight service, which has different codes and sometimes different GST rates.
The HSN Code for Shipping and Parcel Couriers
Shipping and parcel courier services that provide express delivery, tracking, proof of delivery and related support are also grouped under SAC 9968. The core feature is that the service provider is responsible for safe and timely delivery of the package between the sender and receiver.
In many e commerce transactions, the seller raises a separate invoice for goods and the courier company raises an invoice for delivery charges. The courier invoice normally shows SAC 9968 and 18 % GST, and the e commerce seller can claim input tax credit on this amount if other conditions are met.
GST on Courier and Delivery Services
Most private courier and parcel delivery services attract 18 % GST. This applies to domestic as well as international courier services, except where a specific exemption is notified. The tax is charged on the total courier charges, including fuel surcharge, handling charges and any other fees that form part of the value of supply.
Customers should ensure that courier invoices mention the correct SAC code, GSTIN, taxable value and GST amount. This is important for claiming input tax credit and for matching details in GSTR 2B and other GST returns.
