Taxi Services Under SAC Code 996412
Taxi services cover passenger transport in cabs, radio taxis and app based taxis for point to point or time based hire within and between cities. Operators arrange vehicles and drivers so that customers can travel safely and conveniently on demand. Under GST, these taxi and radio taxi services are classified under SAC 996412. This SAC code and its GST rate decide how much GST is charged on taxi fares. This helps passengers book safe and convenient rides at short notice.
Taxi Services GST Rate for SAC Code 996412
Taxi services under SAC 996412 are treated as passenger transport services under GST. Over time, the rules have evolved for meter taxis, radio taxis and app based taxi models, including how GST is charged and who is responsible for paying the tax.
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 996412 where the service is taxable.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996412 | Taxi services including radio taxi & other similar services | 5% without ITC or 12% with ITC | 5% without ITC or 18% with ITC | Earlier, many taxi services had a 5% without ITC option and a 12% with ITC option. After rationalisation, the concessional 5% remains; the higher ITC-eligible option is now 18%. Exact treatment depends on vehicle type and notified conditions. |
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.
Explore Other SAC Codes Under 9964
This SAC code is part of the passenger transport services group 9964, which covers local and long distance transport by road, rail, water and certain tourism oriented services. The six digit SAC codes under this group help separate city transport, taxi services, charter buses, ferries and sightseeing trips for GST purposes.
Below are the major related six-digit SAC codes under parent 9964
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
Taxi services under SAC 996412 cover meter taxis, radio taxis and app based cabs used for passenger transport. Taxable taxi services now generally fall in the 5 percent GST slab without input tax credit, while some special models can attract 18 percent with input tax credit. Fleet owners, aggregators and drivers should understand who is liable to pay GST, apply the right rate on fares and keep the same treatment in GST returns. For aggregator model changes, it is sensible to review the latest GST notifications and consult a tax expert.
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 does SAC code 996412 cover in GST for taxi services?
SAC 996412 covers taxi services including radio taxi and other similar motor vehicle based passenger transport. It is used for point to point or hire based cab services within a city or for nearby areas, whether booked offline or through apps.
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Does SAC 996412 include online taxi booking, cab and radio taxi services?
Yes. Services provided through platforms like radio taxis and app based cabs are classified under SAC 996412. The aggregator may handle GST collection under special rules, but the underlying service code remains 996412.
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What is the GST rate on taxi services under SAC 996412?
Cab and taxi services often attract 5% GST without ITC, while some operators can choose 12% or 18% with ITC under specific schemes. In certain cases aggregators pay GST under a notified mechanism instead of individual small drivers.
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Are local point to point rides and outstation trips both billed under SAC 996412?
Yes. Whether the cab is hired for a short local ride, airport drop or outstation trip, taxi services by cars and similar vehicles are usually classified under SAC 996412. Other SAC codes are used mainly for bus or organised tour services.
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Can taxi operators claim ITC on services billed under SAC 996412?
Operators paying GST at 5% usually cannot claim ITC. Those who opt for higher rates with ITC may claim credit on fuel is still blocked under GST but on vehicle maintenance, insurance and other eligible services, subject to conditions.