Packing and Forwarding HSN Code: Classification for Logistics and Packing Services
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.
Packing and Forwarding HSN Table and GST Overview
| HSN / SAC Code | Product or Service Description | Product Type / Variant | Typical GST Rate |
|---|---|---|---|
| 996719 | Other supporting services in transport | Forwarding, cargo arrangement and related logistics support | 18% |
| 996812 | Services incidental to manufacturing such as packing | Contract packing and repacking for third parties | 18% |
| 996813 | Warehousing and storage services | Integrated packing with storage and distribution | 18% |
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.
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Frequently Asked Questions
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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.
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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.
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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.
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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.