Packing and Forwarding HSN Code: Classification for Logistics and Packing Services

Updated Upd Jan 28, 2026

Published Pub Dec 2, 2025

12 min

By Apurva Maheshwari

Packing and forwarding services play a key role in logistics, exports and domestic distribution. They include packing goods for safe transport and coordinating their movement through different transport modes. Under GST, these are classified as support services in transport or as services incidental to manufacturing.

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Packing And Forwarding 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
9967	Other Supporting services in transport	18%
9985	Other support services	18%
9986	Support services to mining, electricity, gas and water distribution	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
996713	Clearing and forwarding services	18%
998541	Parcel packing and gift wrapping	18%
998542	Coin and currency packing services	18%

* GST rates may vary based on the latest GST notifications and amendments

What Is the HSN Code for Packing and Forwarding Services

Where a business provides freight booking, documentation, cargo consolidation and coordination, it usually falls under other supporting transport services. If the main activity is packing products for clients, the service is generally classified as incidental to manufacturing or packing services, depending on contract terms.

How Packing and Forwarding Services Are Classified under HSN

Pure packing that changes pack size or presentation is often treated as contract packing or job work. Combined activities like packing plus forwarding are classified by identifying the principal supply in the bundle. For most logistics providers, forwarding and cargo arrangement remain the main service for HSN purposes.

GST Impact on Packing and Forwarding Services

Packing and forwarding services attract GST at standard service rates. Recipients can usually claim input tax credit when services relate to taxable outward supplies or exports. Clear billing with correct HSN code and detailed description helps customers avail ITC and prevents disputes during GST audits.

Is packing done by a manufacturer for its own goods a separate GST service?

No. Packing inherent in manufacturing or trading of own goods is part of supply of goods and not a separate outward service for GST purposes.

How should export houses classify their packing and forwarding charges?

They typically classify such services under transport support services, describing them as export packing and forwarding in the invoice.

Are courier companies providing door-to-door delivery treated as forwarding services?

Courier companies often fall under their own courier service codes, though they perform similar functions to freight forwarders.

Can packing and forwarding service providers opt for composition scheme?

Eligibility depends on turnover limits and scheme rules applicable to service providers, and not only on HSN code. Separate analysis is required.

Apurva Maheshwari

Chartered Accountant • Agra • MRN No.: 445615

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.