Goods Transportation Under SAC Code 996511

Goods transportation services under this code cover moving goods by road using trucks, lorries, container vehicles and similar transport. Service providers pick up consignments from shippers and deliver them to consignees on door to door, hub based or route based models. Under GST, these road goods transport services are classified under SAC 996511. This SAC code and its GST rate decide how GST is charged on freight and how input tax credit works for businesses.

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996511 SAC Code GST Rate

Review old and new GST rates for Goods Transportation under 996511 SAC Code.

Goods transportation services under SAC 996511 are treated as goods transport services by road under GST. Earlier, goods transport agencies could choose between lower rates without input tax credit and higher rates with full input tax credit, and there were special rules for who pays GST under reverse charge in some cases.

After the September 2025 rationalisation, most road goods transport services under this code generally fall in the 5 percent slab without input tax credit for standard GTA style services and 18 percent with input tax credit where the higher rate option is chosen or where services are structured differently. The exact treatment depends on whether the transporter is a GTA, the nature of consignment and the latest GST notifications.

The table below explains the current GST rate applicable to SAC code 996511 for typical services.

SAC Code

996511

Description

Road transport services of Goods including letters, parcels, live animals, household & office furniture, containers etc by refrigerator vehicles, trucks, trailers, man or animal drawn vehicles or any other vehicles.(other than GTA)

New Rate

0% without ITC

Old Rate

0% without ITC

Notes

Road transport of goods by anyone other than a goods transport agency or a courier agency is exempt. Delivery services other than postal and courier are rated under heading 9968: from 1 Nov 2026 delivery through an e-commerce operator by a person not liable to register (the operator pays), and delivery of goods sold through an e-commerce operator, is 5% without ITC; other delivery is 18% with ITC. The 22 September 2025 wording excluding e-commerce local delivery from this exemption is dropped from 1 Nov 2026. Source: Notification 12/2017-Central Tax (Rate), S. No. 18, as amended by Notification 07/2026-Central Tax (Rate); Notification 11/2017-Central Tax (Rate), S. No. 12, as amended by Notification 06/2026-Central Tax (Rate).

When issuing freight invoices under SAC 996511, transporters should clearly show the freight value, the GST rate and amount and whether GST is charged by them or payable by the recipient under reverse charge. The same SAC code and rate treatment should be followed in GSTR 1 and GSTR 3B so that consignors and consignees can claim or account for input tax credit correctly where allowed.

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Practical Classification Guidance

Transporters and logistics companies should select the SAC code that most closely matches the mode and pattern of their goods transport service. Using the correct SAC and GST rate, and applying reverse charge rules wherever applicable, helps avoid classification disputes, keeps the input tax credit trail clean and makes GST returns easier to justify during scrutiny or audits.

Conclusion

Goods transportation services under SAC 996511 cover road transport of goods using trucks, lorries and container vehicles. These services now mainly follow the 5 percent GST slab without input tax credit for standard GTA models and 18 percent with input tax credit in certain structures. Transporters, consignors and consignees should understand who is liable to pay GST, apply the correct rate on freight bills and keep the same classification in GST returns. For large logistics contracts and specialised cargo, it is wise to study the latest GST guidance and consult a tax professional.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996511 and GST compliance.

What does SAC code 996511 cover in GST?

SAC 996511 covers road transport services of goods by trucks, lorries and other goods vehicles, normally when not treated as GTA under separate rules. It includes carriage of furniture, parcels, containers and other cargo by road where the provider charges freight to the customer.

Does SAC 996511 include road transport of furniture, parcels and containers?

Yes. Transport by road of household goods, furniture, parcels, commercial cargo and containers can be classified under SAC 996511, provided it is not specifically classified as a GTA service under another heading. It is a broad code for standard road freight carriage of goods.

What is the GST rate on road goods transport services under SAC 996511?

Road goods transport has many exemptions and special rules. Transport of certain items like agricultural produce may be exempt. Other road freight can be taxed at 5% or 12% or fall under reverse charge if treated as GTA. The exact rate depends on conditions and notifications.

When is road goods transport exempt from GST under SAC 996511?

Transport of some specified goods, such as agricultural produce, milk and certain essentials, is exempt under GST. Also, small value consignments or services by small operators may be exempt depending on thresholds and specific lists. You must check if your particular cargo and conditions fall under any exemption list.

Can businesses claim ITC on paid GST for SAC 996511 services?

Yes. When GST is charged on road freight and the recipient uses the goods for taxable business, ITC is usually available, whether tax is paid under forward charge or reverse charge. Proper tax invoice, payment of GST and compliance with blocking rules are necessary to claim credit.

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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.