Intercity Transport Under SAC Code 996429

Intercity transport services under this code cover other long distance passenger travel that does not fall clearly under standard bus, rail or air categories. Operators may use mixed modes or special services to connect cities and regions. Under GST, these other intercity passenger transport services are classified under SAC 996429. This SAC code and its GST rate decide how GST applies on such long distance fares.  This helps passengers use mixed or special transport options when standard routes are not suitable.

Live Demo Available Today

Experience the power of Expert Accounting

Join our guided walkthrough to see how BUSY can transform your business operations.

Trusted by 6,00,000+ Users
4.5 Google Rating
+91

* No credit card required

996429 SAC Code GST Rate

Review old and new GST rates for Intercity Transport under 996429 SAC Code.

Intercity transport services under SAC 996429 are treated as other long distance passenger transport services under GST. The rate and exemption position depend on the mode used and how the service is defined in the notifications.

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 996429 where the service is taxable.

SAC Code

996429

Description

Other long-distance transportation services of passengers n.e.c.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Long-distance passenger transport at this code is generally 18% with ITC unless a specific exemption or concessional entry applies. From 1 Nov 2026 passenger transport by an electrically operated vehicle (including e-bicycles) with battery charging included in the fare can instead be charged 5% (credit only on same-line input services, capped at 5%) or 18% with full ITC. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(vib) and 8(vii), as amended by Notification 06/2026-Central Tax (Rate).

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.

Stop worrying about SAC & GST compliance

BUSY auto-applies the correct SAC codes & GST rates, ensuring 100% error-free billing every single time.

Automatic Updates
Error-free GSTR
6,00,000+ Happy Users
+91

* No credit card required

Explore More SAC Codes Under 9964

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 transport services under SAC 996429 cover other long distance passenger movement that does not fit usual bus, rail or air categories. Taxable services now generally fall in the 5 percent slab without input tax credit, with 18 percent applying to certain premium or tourism oriented models. Operators should identify the exact nature of each service, apply the appropriate GST rate on fares and keep accurate classification in GST returns. For mixed mode or bundled travel offers, it is sensible to review the latest GST guidance and consult a tax professional.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996429 and GST compliance.

What is SAC code 996429 in GST for intercity transport services?

SAC 996429 is a residual code for other long distance passenger transport services by land, rail or road not covered in earlier entries. It applies where passengers travel between cities or regions using mixed or special modes that do not neatly fit bus, rail or air specific codes.

Does SAC 996429 cover long distance passenger transport by land, rail or road?

Yes. When a service involves long distance passenger movement by road or rail under special arrangements, and it is not already classified under specific SACs for buses or railways, it may fall under SAC 996429. It is used for such “other” intercity passenger services.

What GST rate applies to intercity transport services under SAC 996429?

Most taxable long distance passenger transport services under 996429 would generally follow the standard GST rate used for comparable passenger services, often 5% or 18% depending on structure and available credits. Certain essential services or government notified passenger services may be exempt. Current notifications should be checked.

Should mixed mode intercity travel packages use SAC 996429?

If a package mainly consists of long distance passenger transport by land or rail and does not fall under tour operator rules, SAC 996429 may be appropriate. However, complete holiday or tour packages with hotels and sightseeing usually follow tour operator provisions rather than pure transport classification.

Can operators claim ITC on services billed under SAC 996429?

Where supplies are taxable and not under a concessional no credit scheme, operators can generally claim ITC on eligible inputs and input services used in providing 996429 services. Input credit remains subject to normal blocking rules, proper documentation and use of these services for taxable outward supplies.

Found this useful? Add BUSY as a preferred source to see more of us on Google.

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.