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.
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 Services HSN and GST Rate Table
| Service type | SAC code | Service description | GST rate |
|---|---|---|---|
| Domestic courier services | 9968 | Door to door delivery of parcels and documents within India. | 18% |
| International courier services | 9968 | Express export and import of parcels and documents across countries. | 18% |
| Express parcel and shipping services | 9968 | Time bound parcel delivery for e-commerce and businesses. | 18% |
Freight transport of goods by road, rail or vessel may fall under other SAC codes and can have different GST rates. It is important to distinguish between small parcel courier services and bulk freight movement.
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.
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Frequently Asked Questions
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What is the HSN code for courier services?
Courier and express parcel services are generally classified under SAC 9968, which covers postal and courier services under GST.
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How are shipping services classified differently under HSN?
Door to door parcel courier services fall under SAC 9968, while bulk freight transport of goods by road, rail, air or sea may fall under other SAC codes such as goods transport agency services.
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Does the size of the parcel affect the HSN code for courier services?
No. The size or weight of the parcel does not usually change the SAC code. As long as the service is courier type door to door delivery, SAC 9968 normally applies.
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How does GST apply to courier and parcel services?
Courier and parcel services usually attract 18 % GST on the full courier charge, including fuel surcharge and handling fees. Business customers can claim input tax credit subject to normal conditions.
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Are international courier services classified separately from domestic services?
International and domestic courier services are both generally classified under SAC 9968. However, special rules may apply for export of services when the recipient is outside India and certain conditions are fulfilled.