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.
Book A Demo
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.
Transportation 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 |
|---|---|---|
| 9954 | Other construction services | 18% |
| 9963 | Other Accommodation, food and beverage services | 18% |
| 9964 | Other Passenger transport services | 18% |
| 9965 | Other Goods transport services | 18% |
| 9966 | Other Rental services of Transport vehicles with or without operators | 18% |
| 9967 | Other Supporting services in transport | 18% |
| 9971 | Other Financial and related services | 18% |
| 9973 | Other Leasing or rental services, with or without operator | Same rate of integrated tax as applicable on supply of like goods involving transfer of title in goods |
| 9983 | Any services provided by, _(a) the National Skill Development Corporation set up by the Government of India;(b) a Sector Skill Council approved by the National Skill Development Corporation;(c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;(d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to-(i) the National Skill Development Programme implemented by the National Skill Development Corporation; or(ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or(iii) any other Scheme implemented by the National Skill Development Corporation. | 0% |
| 9985 | Other support services | 18% |
| 9987 | (i) Services by way of housekeeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. | 5 – No ITC |
| 9988 | Other Manufacturing services on physical inputs (goods) owned by others, | 18% |
| 9992 | Any services provided by, _ (a) the National Skill Development Corporation set up by the Government of India; (b) a Sector Skill Council approved by the National Skill Development Corporation; (c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to- (i) the National Skill Development Programme implemented by the National Skill Development Corporation; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation. | 0% |
| 9993 | Services provided by the cord blood banks by way of preservation of stem cells or any other service in relation to such preservation. | 0% |
6 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 996336 | Preparation and/or supply services of food, edible preparations, alcoholic & non-alcoholic beverages to airlines and other transportation operators | 18% |
| 996411 | Local land transport services of passengers by railways, metro, monorail, bus, tramway, autos, three wheelers, scooters and other motor vehicles | 18% |
| 996414 | Other land transportation services of passengers. | 18% |
| 996415 | Local water transport services of passengers by ferries, cruises etc | 18% |
| 996416 | Sightseeing transportation services by rail, land, water & air | 18% |
| 996419 | Other local transportation services of passengers n.e.c. | 18% |
| 996421 | Long-distance transport services of passengers through Rail network by Railways, Metro etc | 18% |
| 996422 | Long-distance transport services of passengers through Road by Bus, Car, non-scheduled long distance bus and coach services, stage carriage etc | 18% |
| 996424 | Coastal and transoceanic (overseas) water transport services of passengers by Ferries, Cruise Ships etc | 18% |
| 996425 | Domestic/International Scheduled Air transport services of passengers | 18% |
| 996426 | Domestic/international non-scheduled air transport services of Passengers | 18% |
| 996427 | Space transport services of passengers | 18% |
| 996429 | Other long-distance transportation services of passengers n.e.c. | 18% |
| 996511 | Road transport services of Goods including letters, parcels, live animals, household & office furniture, containers etc by refrigerator vehicles, trucks, trailers, man or animal drawn vehicles or any other vehicles.(other than GTA) | 0% |
| 996512 | Railway transport services of Goods including letters, parcels, live animals, household & office furniture, intermodal containers, bulk cargo etc | 5 – with ITC of input services |
| 996513 | Transport services of petroleum & natural gas, water, sewerage and other goods via pipeline | 18% |
| 996519 | Other land transport services of goods n.e.c. | 18% |
| 996521 | Coastal and transoceanic (overseas) water transport services of goods by refrigerator vessels, tankers, bulk cargo vessels, container ships etc | 18% |
| 996522 | Inland water transport services of goods by refrigerator vessels, tankers and other vessels. | 0% |
| 996531 | Air transport services of letters & parcels and other goods | 18% |
| 996532 | Space transport services of freight | 18% |
| 996602 | Rental services of water vessels including passenger vessels, freight vessels etc with or without operator | 18% |
| 996603 | Rental services of aircraft including passenger aircrafts, freight aircrafts etc with or without operator | 18% |
| 996609 | Rental services of other transport vehicles n.e.c. with or without operator | 18% |
| 996739 | Other supporting services for railway transport n.e.c | 18% |
| 996749 | Other supporting services for road transport n.e.c | 18% |
| 996759 | Other supporting services for water transport n.e.c. | 18% |
| 996763 | Other supporting services for air transport | 18% |
| 996764 | Supporting services for space transport | 18% |
| 996791 | Goods transport agency services for road transport | 5% – No ITC or 18% with ITC |
| 996792 | Goods transport agency services for other modes of transport | 5% – No ITC or 18% with ITC |
| 996793 | Other goods transport services | 5% |
| 996799 | Other supporting transport services n.e.c | 18% |
| 997135 | Marine, aviation, and other transport insurance services | 18% |
| 997144 | Marine, aviation and other transport reinsurance services | 18% |
| 997311 | Leasing or rental services concerning transport equipments including containers, with or without operator | Same rate of integrated tax as applicable on supply of like goods involving transfer of title in goods |
| 998334 | Engineering services for transportation projects | 18% |
| 998538 | Cleaning of transportation equipment | 18% |
| 998551 | Reservation services for transportation | 18% |
| 998714 | Maintenance and repair services of transport machinery and equipment | 18% |
| 998882 | Other transport equipment manufacturing services | 18% |
* GST rates may vary based on the latest GST notifications and amendments
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.
