Bus Charter 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.

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996413 SAC Code GST Rate

Review old and new GST rates for Bus Charter under 996413 SAC Code.

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.

SAC Code

996413

Description

Non-scheduled local bus and coach charter services

New Rate

5% without ITC or 18% with ITC

Old Rate

5% without ITC or 12% with ITC

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).

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

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996413 and GST compliance.

What is SAC code 996413 in GST for bus charter services?

SAC 996413 is used for bus and coach charter services. It covers hiring a full bus with driver for a group on contract basis, instead of selling individual tickets, for staff movement, pilgrim tours, weddings, school trips or other private group journeys.

Does SAC 996413 cover private bus hire and coach charter trips?

Yes. Private hire of buses and coaches with driver for a fixed route, time or distance is normally classified under SAC 996413. This includes corporate pickups, tourist charters, marriage party buses and school excursions, as long as the whole vehicle is hired by one customer.

What GST rate applies to bus charter services under SAC 996413?

Bus charter services are often taxed at 5% without input tax credit or at a higher rate like 12% with input tax credit, depending on conditions and government notifications. Some specific passenger transport services may also be exempt. The operator must choose the correct scheme while billing.

Should school and corporate group tours use SAC 996413 on invoices?

Yes. When a school or company hires an entire bus on contract for a tour, picnic or regular staff transport, the service is usually coded as SAC 996413 on the invoice. This helps clearly show that it is a charter service and not a simple stage carriage.

Can operators claim ITC on services billed under SAC 996413?

If the operator opts for a concessional 5% rate, input tax credit is generally not available on related expenses. When they charge higher GST with credit, eligible ITC on fuel linked services, repairs and other inputs may be claimed, subject to normal GST rules and restrictions.

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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.