9964 SAC Code: Passenger transport services

Description

Transport of passengers, with or without accompanied belongings, by –(a) air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;(b) non-air conditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or(c) stage carriage other than air-conditioned stage carriage. Explanation.-(a) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);(b) “stage carriage” has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ;(c) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS).

Notes

Exempt: economy-class flights to or from the North-Eastern States and Bagdogra (other classes taxable since 18 July 2022), non-AC contract carriages other than radio taxis (not for tourism, charter or hire), and non-AC stage carriages. From 1 Nov 2026 seat-share helicopter flights from or to an airport or helipad in those States or at Bagdogra are also exempt. The bus exemptions do not apply to rides booked through an e-commerce operator, which pays the tax (from 1 January 2022), unless the bus operator is a company, which pays its own tax (from 20 October 2023). Source: Notification 12/2017-Central Tax (Rate), S. No. 15, as amended by Notification 07/2026-Central Tax (Rate).

Description

Services provided to the Central Government, by way of transport of passengers with or without accompanied belongings, by air, embarking from or terminating at a regional connectivity scheme airport, against consideration in the form of viability gap funding: Provided that nothing contained in this entry shall apply on or after the expiry of a period of 1 year from the date of commencement of operations of the regional connectivity scheme airport as notified by the Ministry of Civil Aviation.

Notes

Specific exemption for services provided to Central Government under RCS when consideration is viability gap funding. Time bound: applies only up to 1 year from commencement of operations of the concerned RCS airport. Still an exempt entry, not converted to a slab rate.

Description

Service of transportation of passengers, with or without accompanied belongings, by—(a) railways in a class other than—(i) first class; or(ii) an air-conditioned coach;(b) metro, monorail or tramway;(c) inland waterways;(d) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and(e) metered cabs or auto rickshaws (including e-rickshaws).

Notes

Exempt: rail in classes other than first class or AC, metro, monorail, tram, inland waterways, public vessel transport not mainly for tourism, and metered cabs and auto-rickshaws. Metered cabs and autos booked through an e-commerce operator are taxable from 1 January 2022, with the operator paying the tax. Source: Notification 12/2017-Central Tax (Rate), S. No. 17 as amended by 16/2021.

Description

Transport of passengers by rail in first class or air conditioned coaches

Notes

Taxed at 5%; credit on goods used to provide the service cannot be used to pay this tax, but credit on input services is allowed. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(i).

Description

Transport of passengers, with and without accompanied belongings by(a) air conditioned contract carriage other than motor cab;(b) air conditioned stage carriage;(c) radio taxi Explanation.-(a) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);(b) “stage carriage” has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ;(c) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS).

Notes

AC contract carriages other than motor cabs, AC stage carriages and radio taxis pay a mandatory 5% with no input tax credit. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(ii).

Description

Transport of passengers by air in economy class

Notes

Taxed at 5%; credit on goods used to provide the service is not allowed, but credit on input services is. Travel other than economy class is 18% with ITC (12% before 22 September 2025). Source: Notification 11/2017-Central Tax (Rate), S. No. 8(iii) and 8(v) as amended by 15/2025.

Description

Transport of passengers, by air, embarking from or terminating in a Regional Connectivity Scheme Airport

Notes

Taxed at 5%; credit on goods used to provide the service is not allowed, but credit on input services is. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(iv).

Description

Transport of passengers by air in other than economy class.

Notes

Premium / business class and other non-economy cabins are one of the clear 12% → 18% moves. Earlier in 12% slab with ITC; now aligned to the standard 18% service slab with ITC for supplies on or after 22 Sep 2025.

Description

Other Passenger transport services

Notes

Any passenger transport that does not qualify under an exemption or a concessional entry falls here at 18% with ITC. From 1 Nov 2026 transport by an electrically operated vehicle (including e-bicycles) where battery charging is included in the fare leaves this residual rate and can be charged 5% (credit only on same-line input services, capped at 5%) or 18% with full ITC. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vii) and 8(vib), as amended by Notification 06/2026-Central Tax (Rate).

Description

Transport of passengers by motor cab(motor vehicle designed to Carry passengers inserted w.e.f 13/10/2017)where the cost of fuel is included in the consideration charged from the service recipient.

Notes

With fuel included, the operator can charge 5% (credit only on same-line input services such as hired cabs, capped at 5%) or 18% with full ITC; the 18% option replaced 12% from 22 September 2025. From 1 Nov 2026 the same choice applies to passenger transport by an electrically operated vehicle (including e-bicycles) when battery charging is included in the fare; earlier such rides had no 5% entry of their own. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vi) and 8(vib), as amended by Notification 06/2026-Central Tax (Rate).

Description

Transport of passengers by motor cab(motor vehicle designed to Carry passengers inserted w.e.f 13/10/2017)where the cost of fuel is included in the consideration charged from the service recipient.

Notes

With fuel included, the operator can charge 5% (credit only on same-line input services such as hired cabs, capped at 5%) or 18% with full ITC; the 18% option replaced 12% from 22 September 2025. From 1 Nov 2026 the same choice applies to passenger transport by an electrically operated vehicle (including e-bicycles) when battery charging is included in the fare; earlier such rides had no 5% entry of their own. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vi) and 8(vib), as amended by Notification 06/2026-Central Tax (Rate).

Description

Local land transport services of passengers by railways, metro, monorail, bus, tramway, autos, three wheelers, scooters and other motor vehicles

Notes

Rail travel other than first class or AC, metro, monorail, tram, non-AC buses and metered autos or cabs not booked through an app are exempt; first-class and AC rail is 5% with goods-credit limits; AC buses and radio taxis are 5% without ITC. Motor vehicles hired with fuel included, and from 1 Nov 2026 electric vehicles (including e-bicycles) with charging included, can be charged 5% with same-line credit only or 18% with full ITC. Source: Notification 11/2017-Central Tax (Rate), S. No. 8, as amended by Notification 06/2026-Central Tax (Rate); Notification 12/2017-Central Tax (Rate), S. No. 15 and 17.

Description

Taxi services including radio taxi & other similar services

Notes

With fuel included, the operator can charge 5% (credit only on same-line input services such as hired cabs, capped at 5%) or 18% with full ITC; 18% replaced 12% from 22 September 2025. From 1 Nov 2026 the same choice applies to passenger transport by an electrically operated vehicle (including e-bicycles) when battery charging is included in the fare; earlier such rides had no 5% entry of their own. Radio taxis are fixed at 5% without ITC with no option. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(ii), 8(vi) and 8(vib), as amended by Notification 06/2026-Central Tax (Rate).

Description

Non-scheduled local bus and coach charter services

Notes

Hire of a bus or coach with fuel included can be charged at 5% (credit only on same-line input services, capped at 5%) or 18% with full ITC; the 18% option replaced 12% from 22 September 2025. From 1 Nov 2026 the same choice applies to electric buses and coaches when battery charging is included in the price. Air-conditioned contract carriages are fixed at 5% without ITC. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(ii), 8(vi) and 8(vib), as amended by Notification 06/2026-Central Tax (Rate).

Description

Other land transportation services of passengers.

Notes

Passenger transport not covered by a specific entry is 18% with ITC. Specific modes differ: exempt public transport (rail travel other than first class or AC, metro, non-AC buses, metered autos), 5% for ropeways, and 5% with limited same-line credit for fuel-inclusive motor vehicles unless the supplier opts for 18%; from 1 Nov 2026 electric vehicles (including e-bicycles) with charging included get the same 5% or 18% choice. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vi), 8(via), 8(vib) and 8(vii), as amended by Notification 06/2026-Central Tax (Rate); Notification 12/2017-Central Tax (Rate), S. No. 15 and 17.

Description

Local water transport services of passengers by ferries, cruises etc

Notes

Ferry transport on inland waterways, and public transport by vessel between places in India not mainly for tourism, is exempt. Other passenger water transport, such as cruises and tourist boats, is 18% with ITC. Source: Notification 12/2017-Central Tax (Rate), S. No. 17(c),(d); Notification 11/2017-Central Tax (Rate), S. No. 8(vii).

Description

Sightseeing transportation services by rail, land, water & air

Notes

Sightseeing and tourist transport is generally 18% with ITC because the public-transport exemptions exclude tourism. A tour by motor vehicle with fuel included, or from 1 Nov 2026 by an electrically operated vehicle with battery charging included, can instead be charged at 5% with limited same-line credit; ropeway rides are 5%. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vi), 8(via), 8(vib) and 8(vii), as amended by Notification 06/2026-Central Tax (Rate).

Description

Other local transportation services of passengers n.e.c.

Notes

Passenger transport not covered by a specific entry is 18% with ITC. Specific modes differ: exempt public transport (rail travel other than first class or AC, metro, non-AC buses, metered autos), 5% for ropeways, and 5% with limited same-line credit for fuel-inclusive motor vehicles unless the supplier opts for 18%; from 1 Nov 2026 electric vehicles (including e-bicycles) with charging included get the same 5% or 18% choice. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vi), 8(via), 8(vib) and 8(vii), as amended by Notification 06/2026-Central Tax (Rate); Notification 12/2017-Central Tax (Rate), S. No. 15 and 17.

Description

Long-distance transport services of passengers through Rail network by Railways, Metro etc

Notes

Rail travel in classes other than first class or AC, and metro, is exempt; first class and AC coaches are 5%, with credit on goods not usable to pay this tax. Source: Notification 12/2017-Central Tax (Rate), S. No. 17(a),(b); Notification 11/2017-Central Tax (Rate), S. No. 8(i).

Description

Long-distance transport services of passengers through Road by Bus, Car, non-scheduled long distance bus and coach services, stage carriage etc

Notes

AC stage and contract carriages pay a fixed 5% without ITC, and non-AC stage carriages and regular non-AC contract carriages are exempt. Car or coach hire with fuel included, outside those entries, can choose 5% with limited same-line credit or 18% with full ITC; from 1 Nov 2026 electric cars and coaches with battery charging included have the same choice. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(ii), 8(vi) and 8(vib), as amended by Notification 06/2026-Central Tax (Rate); Notification 12/2017-Central Tax (Rate), S. No. 15.

Description

Taxi services including radio taxi & other similar services

Notes

With fuel included, the operator can charge 5% (credit only on same-line input services such as hired cabs, capped at 5%) or 18% with full ITC; 18% replaced 12% from 22 September 2025. From 1 Nov 2026 the same choice applies to passenger transport by an electrically operated vehicle (including e-bicycles) when battery charging is included in the fare; earlier such rides had no 5% entry of their own. Radio taxis are fixed at 5% without ITC with no option. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(ii), 8(vi) and 8(vib), as amended by Notification 06/2026-Central Tax (Rate).

Description

Coastal and transoceanic (overseas) water transport services of passengers by Ferries, Cruise Ships etc

Notes

Public transport by vessel between places in India, not mainly for tourism, is exempt. Other coastal and overseas passenger shipping, including cruises, is 18% with ITC. Source: Notification 12/2017-Central Tax (Rate), S. No. 17(d); Notification 11/2017-Central Tax (Rate), S. No. 8(vii).

Description

Domestic/International Scheduled Air transport services of passengers

Notes

Economy class is 5% (no credit on goods, credit on services allowed) and other classes are 18% with ITC, raised from 12% on 22 September 2025. Economy flights to or from the North-Eastern States and Bagdogra are exempt. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(iii) and 8(v) as amended by 15/2025; Notification 12/2017-Central Tax (Rate), S. No. 15(a).

Description

Domestic/international non-scheduled air transport services of Passengers

Notes

Charter of aircraft for passengers is 18% with ITC. Seat-share helicopter services, notified religious-pilgrimage flights and Regional Connectivity Scheme flights are 5%, with no credit on goods; from 1 Nov 2026 seat-share helicopter flights from or to an airport or helipad in the North-Eastern States, Sikkim or Bagdogra are exempt. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(iv), 8(iva) and 8(ivb); Notification 12/2017-Central Tax (Rate), S. No. 15(aa), as inserted by Notification 07/2026-Central Tax (Rate).

Description

Space transport services of passengers

Notes

Classified under passenger transport. Standard rate already at 18%. The 56th Council restructuring mainly targeted concessional 12% slabs. No specific change notified here, so the standard 18% continues.

Description

Other long-distance transportation services of passengers n.e.c.

Notes

Long-distance passenger transport at this code is generally 18% with ITC unless a specific exemption or concessional entry applies. From 1 Nov 2026 passenger transport by an electrically operated vehicle (including e-bicycles) with battery charging included in the fare can instead be charged 5% (credit only on same-line input services, capped at 5%) or 18% with full ITC. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vib) and 8(vii), as amended by Notification 06/2026-Central Tax (Rate).