Commercial Space Travel Services Under SAC Code 996427
Commercial space travel services cover passenger trips into outer space or near space for tourism, research or demonstration purposes. Operators use specialised launch vehicles or spacecraft to carry paying passengers on defined missions. Under GST, these commercial passenger space travel services are classified under SAC 996427. This SAC code and its GST rate decide how GST applies on space tourism packages. This helps early space tourism and research missions reach paying passengers in a structured way.
Commercial Space Travel Services GST Rate for SAC Code 996427
Commercial space travel services under SAC 996427 are treated as specialised passenger transport and tourism services under GST. These are typically taxable because they are high value, optional travel services rather than basic public 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 996427 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 |
|---|---|---|---|---|
| 996427 | Space transport services of passengers | 18% with ITC | 18% with ITC | Classified under passenger transport. Standard rate already at 18%. The 56th Council restructuring mainly targeted concessional 12% slabs. No specific change notified here, so the standard 18% continues. |
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
Commercial space travel services under SAC 996427 cover passenger trips into space or near space for tourism and research. These high value services are usually taxable, now sitting mainly in the 18 percent slab with input tax credit because of their specialised nature. Operators and investors should treat these as premium taxable services, apply the correct GST rate on packages and maintain detailed documentation in GST returns. Given the new and evolving nature of this area, it is essential to follow the latest GST notifications and take 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.
Frequently Asked Questions
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What does SAC code 996427 cover in GST?
SAC 996427 is meant for passenger transport services through space. It covers emerging space tourism activities where passengers are taken on sub orbital or orbital flights mainly for experience, not just transport. It is a specialised code for commercial space passenger services and related tourism offerings.
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Does SAC 996427 include commercial space travel and passenger space flights?
Yes. Commercial space trips that take paying passengers beyond the atmosphere or to near space are expected to be classified under SAC 996427. This includes flights offered by private space tourism companies where passengers experience weightlessness, high altitudes or short term space travel experiences.
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What is the GST rate on space tourism services under SAC 996427?
Space tourism is a highly specialised service and is likely to be treated as a fully taxable luxury or specialised transport service. In practice, such services would typically attract the standard higher GST rate like 18%, unless a specific notification prescribes a different rate in future.
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Should space tour packages and tickets use SAC 996427?
Yes. If a business sells tickets or packages for passenger space flights, invoices should normally mention SAC 996427. This helps clearly identify the service as space passenger transport for GST purposes, instead of ordinary air travel, and makes it easier to follow any special rules for this activity.
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Is ITC available on GST paid for SAC 996427 services?
Where GST is charged on space tourism services, registered recipients using them for business, and providers of such services, can generally claim input tax credit on eligible inputs. However, given the niche nature, any future specific restrictions or conditions should be checked carefully before availing ITC.