Local Taxi Services Under SAC Code 996423
Local taxi services under this code cover short distance passenger travel by meter taxis, radio taxis and app based cabs inside cities and nearby areas. Operators arrange vehicles and drivers so that passengers can book rides quickly for daily movement. Under GST, these local taxi transport services are classified under SAC 996423. This SAC code and its GST rate decide how GST applies on taxi bills. This helps people move quickly for office, market, airport and daily local trips.
Local Taxi Services GST Rate for SAC Code 996423
Local taxi services under SAC 996423 are treated as passenger transport by motor cab under GST. The responsibility for charging and paying GST can depend on whether the service is arranged directly or through an aggregator platform.
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 996423 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 |
|---|---|---|---|---|
| 996423 | Taxi services including radio taxi & other similar services | 5% without ITC or 12% with ITC | 5% without ITC or 18% with ITC | Long distance taxi / contract carriage follows the same passenger transport pattern: 5% without ITC vs higher slab with ITC, with the higher slab stepped up 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.
Below is a list of related 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
Local taxi services under SAC 996423 cover city taxi, radio taxi and app based cab rides. Taxable services generally sit in the 5 percent slab without input tax credit, with 18 percent applying in some special configurations. Fleet owners, drivers and aggregators should understand who is liable to pay GST, apply the correct rate on every ride and maintain consistent reporting in GST returns. For new aggregator models or policy changes, it is sensible to review the latest GST circulars.
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.