Intercity Bus Services Under SAC Code 996422
Intercity bus services cover long distance road transport of passengers between cities, towns and states through scheduled and non scheduled buses. Operators provide seating, sleeper berths and basic amenities for road journeys. Under GST, such long distance bus transport services are classified under SAC 996422. This SAC code and its GST rate decide how GST applies on intercity bus fares. This helps passengers choose flexible, comfortable bus options for longer road journeys.
Intercity Bus Services GST Rate for SAC Code 996422
Intercity bus services under SAC 996422 are treated as long distance passenger road transport under GST. Earlier, different models for stage carriage and contract carriage sometimes caused confusion on applicable GST rates.
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, charter or tourism oriented services can attract 18 percent with input tax credit. The exact rate and conditions depend on the latest GST notifications for each category.
The table below shows the latest standard GST rate for SAC code 996422 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 |
|---|---|---|---|---|
| 996422 | Long-distance transport services of passengers through Road by Bus, Car, non-scheduled long distance bus and coach services, stage carriage etc | 5% without ITC or 12% with ITC | 5% without ITC or 18% with ITC | Bus / coach passenger transport is explicitly rationalised: the concessional 5% option is retained, while the higher credit-eligible option increases 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 applied 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 air, along with certain tourism and charter services. The six digit SAC codes under this group help separate city services, taxi services, intercity travel, ferries and sightseeing tours for GST reporting.
The list below highlights key six-digit SAC codes under 9964
Passenger transport operators should choose the SAC code that best matches the main type of service they provide. 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 clear tax trail and make GST returns easier to explain during scrutiny or audits.
Conclusion
Intercity bus services under SAC 996422 cover long distance bus travel between cities and states. Taxable services now broadly fall in the 5 percent GST slab without input tax credit, with 18 percent applying to certain premium or package services. Bus operators and aggregators should understand which routes and services are taxable, apply the right GST rate on fares and follow the same treatment in GST returns. For tour packages and luxury coaches, it is wise to go through the latest GST notifications and seek expert 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.