Supply Services Under SAC Code 996336
Food and beverage supply services for airlines and transport operators cover preparing meals, snacks and beverages in central kitchens and supplying them to aircraft, trains, buses and ships. Operators focus on bulk preparation, packing and delivery to meet service schedules. Under GST, these preparation and supply services are classified under SAC 996336. This SAC code and its GST rate decide how much GST applies on the service part of such supplies.
Supply Services GST Rate for SAC Code 996336
Food and beverage supply services under SAC 996336 are treated as preparation and supply services linked to transport and hospitality under GST. Earlier, different models of supplying meals to airlines and transport operators sometimes led to doubt about the taxable value for the service element.
After the September 2025 rationalisation, most standard catering, contract food and beverage services under these codes generally fall in the 5 percent slab without input tax credit where they operate like regular restaurant or catering services. In some structured or input intensive models, 18 percent with input tax credit can apply as per the latest notifications.
The table below explains the current GST rate applicable to SAC code 996336 for typical services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996336 | Preparation and/or supply services of food, edible preparations, alcoholic & non-alcoholic beverages to airlines and other transportation operators | 18% with ITC | 18% with ITC | Contract food supply to transport operators is treated as contract catering and stays at 18% with ITC in typical cases. |
While issuing invoices under this SAC code, service providers should clearly show the taxable value of food and service charges, the GST rate and the tax amount so that clients understand the bill clearly. The same SAC code and rate pattern should be used in GSTR 1 and GSTR 3B for outward supplies to keep GST records consistent and easy to justify.
Explore Other SAC Codes Under 9963
This SAC code is part of the accommodation, food and beverage services group 9963, which covers hotel stays, hostels and PGs, student residences, restaurant services, catering services and other hospitality activities. Each six digit SAC within this group is meant to capture a specific type of stay or food service so that GST reporting becomes more accurate.
Below are the major related six-digit SAC codes under parent 9963
In daily use, businesses should select the SAC code that best matches the main nature of their service. If the focus is more on room accommodation, restaurant food, large event catering or contract meal supply, another SAC within 9963 may be more suitable. Correct SAC selection and GST rate application help avoid future disputes, keep the input tax credit position clear and make GST records easier to justify during audits or departmental checks.
Conclusion
Food and beverage supply services under SAC 996336 cover preparing and supplying meals and drinks to airlines, railways and other transport operators. These services now broadly follow the 5 percent GST slab without input tax credit for regular catering style models and 18 percent with input tax credit for certain structured or input heavy arrangements. Central kitchens and service providers should identify the correct model, charge the right GST rate on invoices and maintain consistent disclosure in GST returns. For cross border or airline specific contracts, it is sensible to check the latest GST rules and seek expert advice.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
Frequently Asked Questions
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What is SAC code 996336 in GST?
SAC 996336 covers preparation or supply services of food and beverages to airlines and other transport operators, where the food is not served directly by the caterer to passengers but supplied in bulk to the operator.
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Does SAC 996336 cover food and beverage preparation for airlines and transport operators?
Yes. When a catering unit prepares packed meals or trolleys and hands them over to airlines, railways or bus operators for later service to passengers, the service is classified under SAC 996336.
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What GST rate applies to services under SAC 996336?
These B2B catering supplies usually attract 5% without ITC or 18% with ITC depending on notification conditions. Many large flight kitchen operators opt for 18% with ITC because of high input costs and capital investment.
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Is SAC 996336 used when food is supplied but not served directly to passengers?
Yes. The key point for 996336 is that the caterer supplies food to the operator, while crew or staff later serve passengers. Direct serving on board is usually 996335, while bulk supply for further use is 996336.
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Can operators claim ITC on services billed under SAC 996336?
Transport operators may claim ITC if their outward passenger transport is taxable and they are not blocked by specific rules. Where transport is exempt, such as many economy public services, ITC on catering inputs linked to exempt supplies is not allowed.