Air Transport Under SAC Code 996531

Air transport services for goods cover moving parcels, cargo and express shipments by air using cargo planes, belly space in passenger aircraft and dedicated air freight services. Operators provide fast door to door or airport to airport delivery for time sensitive goods. Under GST, these air cargo transport services are classified under SAC 996531. This SAC code and its GST rate decide how GST applies on air freight charges.

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996531 SAC Code GST Rate

Review old and new GST rates for Air Transport under 996531 SAC Code.

Air transport services for goods under SAC 996531 are treated as transport of goods by air under GST. Different rules may apply for domestic and international segments, and for export bound consignments.

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 996531 for typical goods transport services.

SAC Code

996531

Description

Air transport services of letters & parcels and other goods

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Air freight is taxed at 18%; freight for bringing goods by air from outside India up to the customs station in India is Nil. Source: Notification 11/2017-Central Tax (Rate), S. No. 9(vii); Notification 12/2017-Central Tax (Rate), S. No. 19.

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

Air transport services for goods under SAC 996531 cover air cargo and express shipments. Taxable services generally fall in the 18 percent slab with input tax credit because of the high value and input intensive nature of air freight, while some export related segments may have special treatment. Airlines, cargo operators and shippers should understand the current rules, apply the correct GST rate on freight bills and keep consistent reporting in GST returns. For cross border and courier models, it is sensible to study the latest GST guidance and seek expert advice.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996531 and GST compliance.

What does SAC code 996531 cover in GST?

SAC 996531 covers air transport of letters, parcels and other cargo. It includes air express, air mail, courier shipments and freight carried in aircraft holds on domestic or international routes when the main supply is transporting goods by air for consideration.

Does SAC 996531 include air transport of letters, parcels and courier shipments?

Yes. Fast parcel and courier consignments delivered by air fall under SAC 996531. This covers both domestic overnight air courier and international priority shipments carried by airlines or dedicated air cargo operators as part of courier or cargo services.

What is the GST rate on air courier and parcel services under SAC 996531?

Air cargo and courier services are generally taxable, often at the standard GST rate of 18%. Certain export freight may qualify for zero rating or exemption. The actual rate and place of supply rules depend on whether the shipment is domestic, export, import or part of a composite service.

Should international air courier companies use SAC 996531 on their invoices?

Yes. International air courier companies moving parcels by air generally classify their transport component under SAC 996531. On invoices, they may show consolidated courier charges, but internally and for GST returns, the service is treated as air transport of goods using this SAC code.

Can businesses claim ITC on GST paid for SAC 996531 services?

Registered businesses using taxable air courier or air cargo services for their operations can typically claim ITC on GST charged, provided the expenses relate to taxable supplies and are not blocked credits. Proper tax invoices and matching in returns are important for retaining these input tax credits.

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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.