Local Transport Under SAC Code 996411

Local transport services under this code cover passenger travel within a city or local area by metro, local trains, city buses, trams and similar public transport systems. Operators provide scheduled services on fixed routes so that people can commute for work, education and daily needs. Under GST, these local passenger transport services are classified under SAC 996411. This SAC code and its GST rate decide how GST applies on fares where taxable.

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996411 SAC Code GST Rate

Review old and new GST rates for Local Transport under 996411 SAC Code.

Local passenger transport services under SAC 996411 are treated as passenger transport services under GST. Many basic public transport services such as metro and local trains are exempt, while certain chargeable categories follow notified GST slabs.

After the September 2025 rationalisation, taxable passenger transport services under these codes generally fall in the 5 percent slab without input tax credit for standard transport models, while certain premium or tourism oriented services can attract 18 percent with input tax credit. The exact treatment depends on the type of service, contract structure and specific government notifications.

The table below shows the latest standard GST rate for SAC code 996411 where the service is taxable.

SAC Code

996411

Description

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

New Rate

5% without ITC

Old Rate

5% without ITC

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.

When issuing invoices for taxable passenger transport services under this SAC code, operators should clearly show the fare, the GST rate and the tax amount so that passengers and corporate clients understand the charge. The same SAC code and rate should be used in GSTR 1 and GSTR 3B for outward supplies, and exempt services should be reported correctly wherever required.

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Practical Classification Guidance

Passenger transport operators should use the SAC code that most accurately describes the main type of service offered. Correct SAC selection and correct use of 5 percent or 18 percent GST slabs, along with exemption rules where applicable, help reduce disputes, maintain a clean tax trail and make GST returns easier to explain during scrutiny or audits.

Conclusion

Local passenger transport services under SAC 996411 cover city metro, local trains, trams and similar public transport systems. Many basic services remain exempt, while taxable categories follow notified rates that now fit into the 5 percent and 18 percent structure. Transport operators and authorities should identify which services are exempt or taxable, apply the correct GST treatment on tickets and keep proper records in GST returns. For mixed or special services, it is wise to go through the latest GST circulars and seek expert advice.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996411 and GST compliance.

What is SAC code 996411 in GST for local passenger transport?

SAC 996411 covers local land transport services of passengers by railways, metro, monorail, buses, trams, autos, three wheelers, scooters and other motor vehicles for short distance travel within a city or region.

Does SAC 996411 cover metro, city bus and other public transport services?

Yes. Metro rail, local trains, city buses, trams and many forms of mass public transport fall under SAC 996411. It also includes certain auto rickshaw and e rickshaw services when they operate as local public transport.

What GST rate applies to local transport services under SAC 996411?

Many common public transport services like non air conditioned buses, metro, suburban rail and inland water transport are fully exempt from GST. Some higher end or special services can attract 5% GST, often without ITC. Treatment depends on vehicle type and notification.

Is GST exempt for certain local passenger transport services under SAC 996411?

Yes. To keep fares affordable, several mass transport modes used by the general public are exempt, such as metro, public non AC buses and specific government ferry services. Operators of exempt services cannot claim ITC on inputs used exclusively for those services.

Should city transport operators use SAC 996411 on their invoices?

Where operators issue GST invoices, such as private city bus services or taxable special services, they should mention SAC 996411. Many exempt public services may not issue GST invoices but still use this code in internal classification and compliance records.

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Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.