Pipeline Transportation Under SAC Code 996513

Pipeline transportation services cover moving petroleum products, natural gas, chemicals and other liquids or gases through pipelines over long distances. Operators design, maintain and operate pipeline networks so that goods can flow safely from source to destination. Under GST, such pipeline transportation of goods is classified under SAC 996513. This SAC code and its GST rate decide how GST applies on pipeline transport charges.  This helps industries move large volumes continuously with lower handling and transit losses.

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996513 SAC Code GST Rate

Review old and new GST rates for Pipeline Transportation under 996513 SAC Code.

Pipeline transportation services under SAC 996513 are treated as specialised goods transport services by pipeline under GST. The tax treatment depends on whether the service is for domestic movement, import linked flow or other notified categories.

After the September 2025 rationalisation, taxable goods transport services under these codes broadly follow the 5 percent slab without input tax credit for standard freight models and 18 percent with input tax credit for certain structured or input intensive arrangements. The exact rate, exemptions and reverse charge conditions depend on the mode, route and latest GST notifications.

The table below explains the current GST rate applicable to SAC code 996513 for typical goods transport services.

SAC Code

996513

Description

Transport services of petroleum & natural gas, water, sewerage and other goods via pipeline

New Rate

5% without ITC or 18% with ITC

Old Rate

5% without ITC or 12% with ITC

Notes

Transport of natural gas, crude oil, petrol, diesel and aviation turbine fuel by pipeline is 5% without ITC or, by option, 18% with full ITC (12% before 22 September 2025). Other goods by pipeline, such as water, are 18% with ITC. Source: Notification 11/2017-Central Tax (Rate), S. No. 9(v) as amended by 1/2018 and 15/2025.

When issuing freight invoices under this SAC code, service providers should clearly show the freight value, the GST rate and amount and whether GST is payable by them or by the recipient under reverse charge. The same SAC code and rate pattern should be followed in GSTR 1 and GSTR 3B so that consignors and consignees can 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, understanding when 5 percent without input tax credit or 18 percent with input tax credit applies, and applying reverse charge rules wherever needed helps avoid disputes and keeps the GST input tax credit trail clean.

Conclusion

Pipeline transportation services under SAC 996513 cover moving petroleum, gas and other products through pipelines. These services are typically taxable within the 5 percent and 18 percent structure depending on the nature of movement and contracts. Pipeline operators and users should review their agreements, identify the correct GST rate, and maintain clear disclosure in GST returns. For cross border and network sharing models, it is sensible to go through the latest GST notifications and consult a tax professional.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996513 and GST compliance.

What does SAC code 996513 cover in GST?

SAC 996513 covers transport of goods through pipelines. This includes petroleum products, crude oil, natural gas, chemicals, water and other liquids or gases moved by pipeline networks. It applies where the main service is transporting these goods from one location to another through pipelines.

Does SAC 996513 include pipeline transport of petroleum, natural gas and other goods?

Yes. Pipelines carrying petroleum, refined products, LPG, natural gas and other similar goods between terminals, refineries, city gates or industrial locations are covered under SAC 996513. It can also include pipeline transport of industrial liquids or water under long term agreements between parties.

What is the GST rate on pipeline transportation services under SAC 996513?

Pipeline transport services are usually taxed at the standard services rate, commonly 18%. The tax is levied on the service charge for transportation, not on the value of the goods transported. Any specific concessional rates or exemptions should be checked in relevant GST rate notifications.

Should long term pipeline transport contracts use SAC 996513?

Yes. Service agreements for transporting goods regularly through pipelines, whether short term or long term, should typically quote SAC 996513. This helps both parties classify the revenue correctly in GST returns and apply the right place of supply and valuation rules for pipeline transportation.

Can service recipients claim ITC on SAC 996513 bills?

Where GST is charged on pipeline transport services and the recipient uses the goods for taxable business, ITC on the service component is usually available. Recipients must ensure invoices mention GST correctly, the tax is paid and the service is used for business activities eligible for 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.