Transportation HSN Code: Understanding HSN Classifications for Transportation Services
Transportation services keep goods and people moving across India. Under GST, these services must be billed using the correct HSN or service accounting code so that tax is calculated and reported in the right way.
When you understand the transportation HSN code, it becomes easier to choose the right code for passenger transport, goods transport and related support services and to keep your GST returns accurate.
What Is the Transportation HSN Code?
In GST, every service is grouped under a code that starts with ninety nine. These codes are called service accounting codes and they work like HSN codes for services.
Transportation services are mainly grouped under three important headings. Passenger transport services come under code 9964. Goods transport services come under code 9965. Supporting services in transport such as cargo handling and warehousing usually come under code 9967.
So there is not just one single transportation HSN code for every case. Instead, you choose between 9964, 9965 and 9967 based on whether you are moving passengers, moving goods or providing support around these movements.
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 9964 | Passenger transport services (exempt) | Non AC stage carriage by road, metro, local train and other notified public passenger transport | 0% (Exempt, subject to conditions) |
| 9964 | Passenger transport services (taxable) | AC buses, contract carriages, radio taxis, higher class rail and air travel where GST is applicable | 5% / 12% / 18% (depending on mode and conditions) |
| 9965 | GTA road goods transport services | Transport of goods by road by a Goods Transport Agency issuing consignment note | 5% (without ITC) / 12% (with ITC) / 18% (as per option) |
| 9965 | Other goods transport services | Transport of goods by rail, vessel, air, pipeline and other taxable freight services | 18% |
| 9967 | Supporting services in transport & logistics | Cargo handling, freight forwarding, customs clearing and related transport support services | 18% |
| 9967 | Storage and warehousing services | Warehousing and storage of goods (other than exempt categories like specified agricultural produce) | 18% |
HSN Code for Transportation Services by Road
Transportation by road is the most common form of transport in India. It includes buses, taxis and other vehicles that carry passengers as well as trucks and lorries that carry goods.
For passenger transport by road, most services come under the passenger transport heading 9964. Inside this heading there are more detailed codes for local transport and long distance transport by different modes but they all sit under the same passenger transport group.
For goods transport by road, services normally come under the goods transport heading 9965. Under this heading, you find specific codes for services of a goods transport agency and for transport of goods by road, rail, ship, air or pipeline.
When a goods transport agency issues a consignment note for moving goods by road, it will classify its service under the 9965 series and charge GST at the rate that matches the current rules for such services.
HSN Code for Transportation Charges and GST
Transportation charges are the amounts that appear on invoices when you pay or collect money for moving passengers or goods. Under GST these charges are taxed according to the HSN code used.
For passenger transportation under code 9964, GST rates can be five percent, twelve percent or eighteen percent or even nil for some exempt services, depending on the mode of travel and the exact conditions. For example, many basic passenger transport services by road or by rail are taxed at a lower rate or are exempt when specific conditions are met.
For goods transportation under code 9965, services of a goods transport agency by road are often taxed at five percent without input tax credit or at twelve percent with input tax credit when the agency chooses that option. Some types of goods transport can also be taxed at eighteen percent or be fully exempt if they deal with specified essential goods.
Even if the GST rate changes from time to time, the broad transportation HSN code remains the same. The code tells the nature of the service, while separate rate notifications decide how much GST is payable on transportation charges.
Transportation Service HSN Code and GST Classification
Transportation service HSN codes help group similar services together so that GST rules can be applied in a uniform way across the country.
Passenger transport services under 9964 cover travel by road, rail, water, air and other modes when passengers along with their baggage are moved from one place to another.
Goods transport services under 9965 cover road transport by goods transport agencies, rail freight, coastal shipping, inland water transport, air freight and transport through pipelines and similar channels.
Supporting services in transport under 9967 cover cargo handling, storage, warehousing, freight forwarding and other support services that enable smooth movement of goods and passengers.
Because each of these headings carries its own list of GST rates and exemptions, choosing the correct transportation HSN code is the first step before you can decide the correct tax rate.
Conclusion
Transportation HSN codes play a central role in how GST applies to the movement of passengers and goods. Codes such as 9964, 9965 and 9967 show whether a service is related to passenger transport, goods transport or supporting activities around transport.
When you choose the correct transportation HSN code and match it with the right GST rate, your invoices become more accurate, your records match the requirements for GST returns and you reduce the chance of disputes, interest and penalties in future.
I’m CA Mohammad Abid Khan, a Chartered Accountant based in Varanasi with 10 years of experience. I specialize in GST and Income Tax, helping individuals and businesses stay compliant and optimize their taxes. I hold B.Com and M.Com degrees and enjoy simplifying finance through practical, easy-to-understand content.
Frequently Asked Questions
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What is the HSN code for transportation services in India?
There is no single HSN code for all transportation services in India. Passenger transport services usually come under code 9964, goods transport services come under code 9965 and many supporting transport services come under code 9967.
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How is the HSN code for transportation services classified under GST?
Under GST, transportation services are classified based on what is being moved and the role of the service provider. Moving passengers is grouped under passenger transport, moving goods is grouped under goods transport and related support like cargo handling or warehousing is grouped under supporting services in transport. Each group has its own detailed codes and GST entries.
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What is the GST rate for transportation charges under the HSN code?
There is no single GST rate for all transportation charges. Passenger transport can be taxed at nil, five percent, twelve percent or eighteen percent depending on the mode and conditions. Goods transport can be taxed at five percent, twelve percent or eighteen percent depending on whether the service is by a goods transport agency, by rail, by sea, by air or by other modes and whether input tax credit is allowed.
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Are transportation services by road classified under the same HSN code?
Most transportation services by road fall under the same main headings as other modes. Road passenger transport is covered under the passenger transport heading and road goods transport by a goods transport agency is covered under the goods transport heading. Inside these headings there are more detailed sub codes for road based services but they all sit under the same broad HSN group.
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How do businesses use the transportation HSN code for GST compliance?
Businesses store the correct transportation HSN codes in their invoicing and accounting systems and use them on every bill for transport services. When they file GST returns, they use these codes to prepare HSN wise summaries, to apply the correct GST rate and to support input tax credit claims on eligible transportation charges.