Cruise Ship Services Under SAC Code 996424
Cruise ship services cover passenger travel and leisure trips by sea going cruise ships, where transport is combined with stay, food, entertainment and onboard activities. Operators offer cabin accommodation, meals and guided experiences as part of the voyage. Under GST, such cruise ship passenger services are classified under SAC 996424. This SAC code and its GST rate decide how GST applies on cruise packages. This helps travellers combine sea travel with holiday, leisure and entertainment in one package.
Cruise Ship Services GST Rate for SAC Code 996424
Cruise ship services under SAC 996424 are treated as passenger transport and tourism services by sea under GST. These are largely taxable because they provide leisure and holiday experiences along with 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, 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 996424 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 |
|---|---|---|---|---|
| 996424 | Coastal and transoceanic (overseas) water transport services of passengers by Ferries, Cruise Ships etc | 5% without ITC or 12% with ITC | 5% without ITC or 18% with ITC | Coastal / sea passenger transport now fits into the 5% concessional plus 18% ITC-eligible structure. Some services can still be exempt depending on specific notifications. |
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
Cruise ship services under SAC 996424 cover sea going cruise travel that combines transport with stay, food and entertainment. These services are typically taxable within the 5 percent and 18 percent slab structure depending on how the package is designed. Cruise operators should examine each package carefully, apply the appropriate GST rate on invoices and keep the same classification in GST returns. For international or multi port cruises, it is wise to study the latest GST guidance 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.