Loading Charges HSN Code: Classification for Loading and Unloading Services
Businesses often pay loading and unloading charges when goods are moved in or out of trucks, godowns and warehouses. Under GST, these charges are treated as services and are classified under specific service codes. Using the correct code helps you claim input tax credit smoothly and avoid disputes during assessment.
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What is the HSN code for loading services?
Loading and unloading of cargo, goods and containers are normally treated as cargo handling or supporting transport services. Such services are grouped under the Services Accounting Codes, commonly in headings like SAC 9967. If loading is part of a larger transport contract, the value may be bundled with the main supply of transportation.
Are loading and unloading charges classified separately?
In many cases, loading and unloading are billed together and classified under the same service heading. Where a business provides stand alone loading services, such as labour supply for loading, the SAC code for that specific service is used. Taxpayers should clearly describe the nature of work in invoices so that the classification is easy to understand.
HSN for loading and unloading labour services
When loading charges mainly represent labour work, they can be classified under support services for transportation or under manpower supply, depending on the contract terms. For example, providing labour teams to load and unload trucks on a time basis can be treated as manpower supply even though the work relates to logistics. The correct SAC code is chosen based on who controls the workers and who is responsible for the activity.
How is GST calculated on loading labour charges?
GST on loading labour charges is usually calculated at the standard services rate, often 18%. The tax is applied on the total value charged for the service, including any overtime, equipment hire or incidental expenses billed together. Input tax credit can normally be claimed by registered businesses when the loading service is used in the course of business.
Is HSN different for manual and mechanical loading?
The SAC code for loading services mainly depends on the nature of service, not on whether loading is done manually or with machines. Both manual loading with labour and mechanical loading using forklifts may fall under the same supporting transport services code. However, if a separate equipment rental service is supplied, that portion may be classified under another service heading.
GST on loading and unloading services
Most loading and unloading services attract GST at the regular services rate. Certain services related to agricultural produce or specified exempt supplies can be exempt based on notifications. Businesses should check whether their particular service is covered by any exemption before charging GST.
Loading 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
6 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 996711 | Container handling services | 18% |
| 996719 | Other cargo and baggage handling services | 18% |
| 996751 | Port and waterway operation services (excl. cargo handling) such as operation services of ports, docks, lighthouses, light ships etc | 18% |
| 996761 | Airport operation services (excl. cargo handling)s | 18% |
* GST rates may vary based on the latest GST notifications and amendments
