Sightseeing Boat Tours Services Under SAC Code 996416
Sightseeing boat tours cover leisure and tourism trips by boat where passengers are taken on fixed routes to view rivers, lakes, coasts or city waterfronts. Operators may include commentary, entertainment and light refreshments as part of the package. Under GST, these sightseeing boat and similar tours are classified under SAC 996416. This SAC code and its GST rate decide how much GST is charged on sightseeing tour tickets.
Sightseeing Boat Tours Services GST Rate for SAC Code 996416
Sightseeing boat tours under SAC 996416 are treated as tourism oriented passenger transport or tour services under GST. These services are typically taxable as they provide leisure and tourism experiences rather than basic public transport.
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 996416 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 |
|---|---|---|---|---|
| 996416 | Sightseeing transportation services by rail, land, water & air | 5% without ITC or 12% with ITC | 5% without ITC or 18% with ITC | Tourist / sightseeing transport adopts the same dual structure. The higher ITC-eligible rate increases from 12% to 18%; the concessional 5% option is retained for eligible cases. |
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
Sightseeing boat tours under SAC 996416 cover leisure and tourism trips by boat for viewing rivers, lakes and waterfronts. These services are typically taxable, now generally falling in the 5 percent slab without input tax credit for standard sightseeing and 18 percent with input tax credit for certain premium or package tours. Operators should classify their tours correctly, apply the proper GST rate on tickets and keep the same classification in GST returns. For multi service tourism packages, it is sensible to go through the latest GST notifications and consult a tax professional.
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.