Inland Water Transport Under SAC Code 996522

Inland water transport services for goods cover moving cargo by barges, boats and small ships on rivers, canals and inland waterways. Operators use water routes to move bulk and project cargo between river ports and nearby industrial locations. Under GST, these inland water cargo transport services are classified under SAC 996522. This SAC code and its GST rate decide how GST is charged on river freight where applicable.

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996522 SAC Code GST Rate

Review old and new GST rates for Inland Water Transport under 996522 SAC Code.

Inland water transport services for goods under SAC 996522 are treated as transport of goods by inland waterways under GST. Certain basic services may be exempt, while others are taxable at notified rates.

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 996522 for typical goods transport services.

SAC Code

996522

Description

Inland water transport services of goods by refrigerator vessels, tankers and other vessels.

New Rate

0% without ITC

Old Rate

0% without ITC

Notes

Transport of goods by inland waterways is exempt. Source: Notification 12/2017-Central Tax (Rate), S. No. 18(b).

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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Explore More SAC Codes Under 9965

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

Inland water transport services under SAC 996522 cover moving cargo on rivers and canals. Some basic services may be exempt, while taxable services follow the 5 percent and 18 percent GST slab structure. Operators and users should identify which routes and cargo types are taxable, apply the proper GST rate on freight bills and keep proper classification in GST returns. For large infrastructure linked projects, it is wise to review the latest GST notifications and consult a tax professional.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996522 and GST compliance.

What is SAC code 996522 in GST?

SAC 996522 covers transport of goods by inland waterways such as rivers, canals and lakes. It applies to barges, river vessels and other inland craft carrying goods for hire within India on non sea routes, often between river ports or industrial locations along waterways.

Does SAC 996522 cover inland water transport of goods and freight?

Yes. Freight movement on rivers and canals using barges or similar craft is classified under SAC 996522. It can include movement of coal, cement, containers, agricultural produce and other goods where the transport takes place entirely on inland waterways and not on the open sea.

What GST rate applies to inland water transport services under SAC 996522?

Inland water transport services may attract concessional GST rates, especially when used for certain essential goods. In many cases, services can be taxed at lower rates like 5% or may even have exemptions. Exact rates depend on type of goods and current GST rate notifications.

Should barge and river cargo operators use SAC 996522 on invoices?

Yes. Businesses providing freight services by barges and river vessels should usually quote SAC 996522 on invoices. This identifies their services as inland water transport, helping distinguish them from sea going freight and ensuring the correct tax treatment and reporting in GST returns.

Is ITC allowed on GST paid for SAC 996522 services?

Where GST is levied on inland water freight and the recipient uses the service for taxable business, ITC is generally allowed. For exempt services, no credit is available. Operators themselves can also claim ITC on eligible inputs used to provide taxable inland water transport services.

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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.