Intercity Bus 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.

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996422 SAC Code GST Rate

Review old and new GST rates for Intercity Bus under 996422 SAC Code.

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

996422

Description

Long-distance transport services of passengers through Road by Bus, Car, non-scheduled long distance bus and coach services, stage carriage etc

New Rate

5% without ITC

Old Rate

5% without ITC

Notes

AC stage and contract carriages pay a fixed 5% without ITC, and non-AC stage carriages and regular non-AC contract carriages are exempt. Car or coach hire with fuel included, outside those entries, can choose 5% with limited same-line credit or 18% with full ITC; from 1 Nov 2026 electric cars and coaches with battery charging included have the same choice. 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); Notification 12/2017-Central Tax (Rate), S. No. 15.

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.

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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

Clear answers to common queries about SAC Code 996422 and GST compliance.

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.

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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.