Sightseeing Boat Tours 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.

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996416 SAC Code GST Rate

Review old and new GST rates for Sightseeing Boat Tours under 996416 SAC Code.

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.

SAC Code

996416

Description

Sightseeing transportation services by rail, land, water & air

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Sightseeing and tourist transport is generally 18% with ITC because the public-transport exemptions exclude tourism. A tour by motor vehicle with fuel included, or from 1 Nov 2026 by an electrically operated vehicle with battery charging included, can instead be charged at 5% with limited same-line credit; ropeway rides are 5%. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vi), 8(via), 8(vib) and 8(vii), 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

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996416 and GST compliance.

What does SAC code 996416 cover in GST?

SAC 996416 covers sightseeing tour services by boat, rail, road or air. It includes organised city tours, heritage rides, safari buses, river cruises and similar trips where the main aim is sightseeing or leisure, rather than simply moving passengers from one point to another.

Does SAC 996416 include sightseeing tours by boat, rail, land and air?

Yes. Sightseeing tours using buses, jeeps, small trains, boats, helicopters or small aircraft can all be grouped under SAC 996416 when the service is packaged as a tour. The focus is on the experience, commentary and planned stops, not just basic passenger transport from A to B.

What is the GST rate on sightseeing tour services under SAC 996416?

Sightseeing tours are normally treated as taxable tourism services, often attracting 5% or 18% GST depending on structure and option chosen. Tour operator specific rules may apply where the operator provides a package that includes transport, guide services, entry tickets and sometimes meals or accommodation.

Should packaged city sightseeing trips use SAC 996416 on invoices?

Yes. When a company offers fixed route city tours or sightseeing packages, it should mention SAC 996416 on invoices. This clearly identifies the service as a sightseeing tour instead of ordinary transport, which helps in applying the correct GST rules for tour operators and tourism services.

Is ITC allowed on GST paid for SAC 996416 services?

Tour operators paying GST at lower rates without ITC cannot usually claim credit on related inputs. Where they pay tax under a scheme that allows ITC, they can claim credit on eligible expenses like vehicle repair, fuel linked services, marketing and other input services used for the tours.

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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.