Cargo Shipping Services Under SAC Code 996521
Cargo shipping services cover moving goods by sea and ocean across countries and continents using cargo ships and container vessels. Shipping lines carry bulk cargo, containers and specialised loads between sea ports under freight contracts. Under GST, these coastal and transoceanic cargo shipping services are classified under SAC 996521. This SAC code and its GST rate decide how GST applies on ocean freight where taxable. This helps exporters and importers connect factories and markets across countries efficiently.
Cargo Shipping Services GST Rate for SAC Code 996521
Cargo shipping services under SAC 996521 are treated as transport of goods by sea and ocean under GST. The tax treatment can differ for coastal movement, export freight and import freight based on notifications and place of supply rules.
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 996521 for typical goods transport services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996521 | Coastal and transoceanic (overseas) water transport services of goods by refrigerator vessels, tankers, bulk cargo vessels, container ships etc | 5% without ITC / 12% with ITC / 18% with ITC | 5% without ITC / 18% with ITC | Classified under goods transport services. Same broad treatment as other goods transport: concessional 5% without ITC is preserved; full-ITC option moves from 12% to 18% based on the logistics-sector rate restructuring. |
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.
Explore Other SAC Codes Under 9965
This SAC code is part of the goods transport services group 9965, which covers movement of goods by road, rail, water, air and other modes. The six digit SAC codes under this group help separate road freight, rail freight, coastal shipping, inland water transport, air cargo and specialised freight services for GST classification.
The list below highlights key six-digit SAC codes under 9965
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
Cargo shipping services under SAC 996521 cover coastal and transoceanic movement of goods by sea. The GST position now fits within the rationalised 5 percent and 18 percent slabs, with exemptions or zero rating in specific export related situations. Shipping lines, freight forwarders and exporters should understand the latest rules on place of supply and taxability, apply the correct treatment on freight bills and ensure consistent reporting in GST returns. For complex global contracts, it is sensible to take specialised tax 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
-
What does SAC code 996521 cover in GST?
SAC 996521 covers goods transport services by sea going vessels over international or coastal routes. It includes shipping of containers, bulk cargo, liquid cargo and other goods by ocean going ships between Indian and foreign ports or along the Indian coastline for commercial freight purposes.
-
Does SAC 996521 include coastal and transoceanic cargo shipping and container transport?
Yes. International container ships, bulk carriers and coastal cargo vessels carrying goods for hire fall under SAC 996521. It covers both export and import sea freight and domestic coastal movements where shipping lines or agents charge freight for transporting cargo across sea routes.
-
What is the GST rate on sea freight services under SAC 996521?
GST on sea freight depends on whether the movement is export, import or domestic. Certain export freight may be zero rated or exempt. Other sea freight is often taxed at 5% or 18% depending on service type and notifications. Shipping lines must check current rules carefully.
-
Are export and import cargo shipments billed under SAC 996521?
Yes. Ocean freight for exports and imports, where the supplier is a shipping line or freight forwarder, is usually classified under SAC 996521. Tax treatment may differ, such as exemptions or reverse charge for import freight, but the SAC code for the underlying sea carriage remains this one.
-
Can shippers or exporters claim ITC on SAC 996521 services where GST is charged?
When GST is charged on sea freight used for taxable exports or business supplies, ITC is generally available to registered recipients, subject to export benefit rules. Exporters may also use such credits to claim refunds. Proper documentation of freight invoices and shipping bills is important for claiming credits.