---
title: "Intercity Bus Services | Professional Intercity Bus Solutions"
description: "Expert intercity bus services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 996422."
canonical: "https://busy.in/sac-code-996422/"
---

# Intercity Bus under SAC Code 996422

Part of [SAC 9964: Passenger transport services](https://busy.in/sac-code-9964/).

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.

## 996422 SAC Code GST rate

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.**

| SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes |
| --- | --- | --- | --- | --- |
| 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 18% with ITC | 5% without ITC or 12% 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.

## Practical classification guidance

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.

## Frequently asked questions

### What is SAC code 996422 in GST for intercity bus services?

SAC 996422 covers long distance passenger road transport by buses and coaches between cities or towns. It includes scheduled and non scheduled intercity buses, sleeper coaches and other services where the main activity is carrying passengers over longer distances by road.

### Does SAC 996422 cover long distance road transport by bus and coach?

Yes. Most intercity bus routes such as overnight sleeper services, AC Volvo buses, state transport services and private express coaches between cities are classified under SAC 996422 in GST, as long as they transport passengers by road on longer routes rather than within a single city.

### What GST rate applies to intercity bus services under SAC 996422?

Many basic stage carriage services provided by state transport undertakings may be exempt. Private intercity buses are commonly taxed at concessional rates like 5% without ITC or at higher rates with ITC. The actual rate depends on vehicle type, permit, operator category and current GST notifications.

### Should sleeper and AC Volvo buses also use SAC 996422?

Yes. Sleeper and AC Volvo buses running between cities, whether run by private operators or government undertakings, generally use SAC 996422 for their passenger transport service. Only when the bus is hired on charter basis by one group, a charter specific code may sometimes be more appropriate.

### Can operators claim ITC on services billed under SAC 996422?

If operators choose a concessional GST rate for intercity services, input tax credit is usually blocked. Operators paying GST at a higher rate that allows ITC can recover eligible input tax on maintenance, tyres, spares and other services, subject to general restrictions like blocked credits.

## Explore more

### Other SAC services under 9964

- [996411: Local Transport](https://busy.in/sac-code-996411/)
- [996412: Taxi](https://busy.in/sac-code-996412/)
- [996413: Bus Charter](https://busy.in/sac-code-996413/)
- [996414: Passenger Transport](https://busy.in/sac-code-996414/)
- [996415: Ferry](https://busy.in/sac-code-996415/)
- [996416: Sightseeing Boat Tours](https://busy.in/sac-code-996416/)
- [996419: City Transport](https://busy.in/sac-code-996419/)
- [996421: Rail Transport](https://busy.in/sac-code-996421/)
- [996423: Local Taxi](https://busy.in/sac-code-996423/)
- [996424: Cruise Ship](https://busy.in/sac-code-996424/)
- [996425: Passenger Air Transport](https://busy.in/sac-code-996425/)
- [996426: International Charter Flights](https://busy.in/sac-code-996426/)
- [996427: Commercial Space Travel](https://busy.in/sac-code-996427/)
- [996429: Intercity Transport](https://busy.in/sac-code-996429/)

### All SAC headings

- [99: All Services Accounting](https://busy.in/sac-code-99/)
- [9954: Services in building & construction](https://busy.in/sac-code-9954/)
- [9961: Services in wholesale trade](https://busy.in/sac-code-9961/)
- [9962: Services in retail trade](https://busy.in/sac-code-9962/)
- [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/)
- [9964: Passenger transport services](https://busy.in/sac-code-9964/)
- [9965: Goods transport services](https://busy.in/sac-code-9965/)
- [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/)
- [9967: Supporting services in transport](https://busy.in/sac-code-9967/)
- [9968: Postal & courier services](https://busy.in/sac-code-9968/)
- [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/)
- [9971: Financial & related services](https://busy.in/sac-code-9971/)
- [9972: Real estate services](https://busy.in/sac-code-9972/)
- [9973: Leasing or rental services](https://busy.in/sac-code-9973/)
- [9981: Research & development services](https://busy.in/sac-code-9981/)
- [9982: Legal & accounting services](https://busy.in/sac-code-9982/)
- [9983: Professional, technical & business services](https://busy.in/sac-code-9983/)
- [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/)
- [9985: Support services to business](https://busy.in/sac-code-9985/)
- [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/)
- [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/)
- [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/)
- [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/)
- [9991: Public administration & other services](https://busy.in/sac-code-9991/)
- [9992: Education services](https://busy.in/sac-code-9992/)
- [9993: Human health & social care services](https://busy.in/sac-code-9993/)
- [9994: Sewage & waste collection](https://busy.in/sac-code-9994/)
- [9995: Services of membership organizations](https://busy.in/sac-code-9995/)
- [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/)
- [9997: Other Services](https://busy.in/sac-code-9997/)