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.
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.
HSN / SAC code and GST rate for loading services
| Product / Service | HSN / SAC Code | Product description | GST rate (%) |
|---|---|---|---|
| Loading and unloading services (cargo handling) | SAC 9967 | Services of loading, unloading, packing or handling of cargo and goods | 18 |
| Labour based loading services | Example: SAC 9987 / 9967 | Supply of labour for loading and unloading work on contract basis | 18 |
Note: Service codes for loading charges can vary based on contract structure and exemptions. Confirm the latest SAC description and GST rate before raising invoices.
Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules.
Frequently Asked Questions
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What is the HSN code for loading services?
Loading services are generally classified under service headings such as SAC 9967, which cover cargo handling and support services for transportation.
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Are loading and unloading charges classified separately?
Normally loading and unloading are billed together under the same service code. They are not separated unless a different nature of service such as manpower supply is clearly involved.
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How is GST calculated on loading labour charges?
GST is usually charged at about 18% on the full value of loading labour charges, including any extra amounts billed for overtime or equipment use, subject to exemptions.
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Is HSN different for manual and mechanical loading?
No, both manual and mechanical loading are usually covered under the same service category, as the nature of service is cargo handling in both cases.
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Are transport loading charges taxed differently?
If loading charges are part of a composite transport service, they may follow the GST treatment of the main transport service. Otherwise they are taxed separately as loading services.