Bus Charter Services Under SAC Code 996413
Bus charter services cover hiring buses and coaches on a contract basis for groups, tours, staff transport and special events. Operators provide vehicles with drivers for fixed routes or durations instead of selling individual tickets. Under GST, such private and non scheduled bus charter services are classified under SAC 996413. This SAC code and its GST rate decide how much GST is charged on charter invoices. This helps companies, schools and groups manage group travel in a planned way.
Bus Charter Services GST Rate for SAC Code 996413
Bus charter services under SAC 996413 are treated as non scheduled passenger transport services under GST. Earlier, different treatment for stage carriage and contract carriage sometimes caused confusion on the applicable GST rate for charter bookings.
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 996413 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 |
|---|---|---|---|---|
| 996413 | Non-scheduled local bus and coach charter services | 5% without ITC or 12% with ITC | 5% without ITC or 18% with ITC | Charter / staff transport and similar services follow the same pattern: concessional 5% without ITC vs a higher slab with ITC. The higher slab is rationalised from 12% to 18%. |
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.
The list below highlights key six-digit SAC codes under 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
Bus charter services under SAC 996413 cover contract based hiring of buses and coaches for group travel, tours and staff movement. Taxable services under this code now broadly follow the 5 percent GST slab without input tax credit for standard passenger transport and 18 percent with input tax credit for certain premium or tourism packages. Operators and corporate users should check the nature of each contract, apply the correct rate on invoices and maintain consistent reporting in GST returns. For large or long term charter contracts, it is wise to review the latest GST guidance and seek professional 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.