9966 SAC Code: Rental services of transport vehicles
SAC Code 9966 is for Vehicle Rental Services. This code specifically covers the rental of vehicles, excluding goods transport. It includes a wide range of options such as passenger cars, trucks, motorcycles, bicycles, trailers, and semi-trailers, with or without operators. Whether for personal or commercial use, SAC Code 9966 provides flexible solutions to meet temporary transportation needs.
Scope of SAC Code 9966
The SAC Code 9966 is dedicated to vehicle rental services. This code encompasses the rental or leasing of various transport vehicles, excluding those specifically used for transporting goods. SAC code 9966 is further divided into the following categories:
- Rental services of passenger cars, with or without operators.
- Rental services of trucks, with or without operators.
- Rental services of motorcycles and bicycles, with or without operators.
- Rental services of trailers and semi-trailers, with or without operators.
Categorisation of SAC Code 9966
SAC Code 9966 under GST can be classified in the following ways:
| SAC Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 9966 | Services by way of giving on hire Ð (a) to a state transport undertaking, a motor vehicle meant to carry more than 12 passengers; or (b) to a goods transport agency, a means of transportation of goods. Explanation.- Ògoods transport agencyÓ means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. | 0% without ITC | 0% without ITC | Hire of large passenger vehicles to State transport undertakings and hire of goods vehicles to GTA has been kept fully exempt to keep public transport and core freight costs lower. This exemption continues in the post 22 Sep 2025 regime. |
| 9966 | Renting of motor cab(motor vehicle designed to carry passengers inserted w.e.f 13/10/2017)where the cost of fuel is included in the consideration charged from the service recipient. | 5% with ITC | 5% with ITC | Renting of a passenger motor cab with fuel included in the rent is generally taxed at a concessional 5% rate, with ITC typically allowed mainly on input services in the same line of business, while ITC on many goods remains blocked under general rules. A higher full-ITC option aligned with 18% exists separately but the common working rate stays at 5%. |
| 9966 | Renting of motor cab(motor vehicle designed to carry passengers inserted w.e.f 13/10/2017)where the cost of fuel is included in the consideration charged from the service recipient. | 5% with ITC | 5% with ITC | This is the same SAC and condition repeated in your list. The applicable rate and ITC conditions are identical to the previous row. You can merge these two rows in your master sheet if you want to avoid duplication. |
| 9966 | Other Rental services of Transport vehicles with or without operators | 18% with ITC | 18% with ITC | Generic rental of transport vehicles (buses, trucks, cars, vessels, aircraft etc.) with or without operator, where no specific exemption or concessional entry applies, is treated as a standard rated service at 18% with ITC both before and after GST 2.0. |
| 9966 | (ii) Time charter of vessels for transport of goods. | 18% with ITC | 18% with ITC | Time charter is typically treated as renting of a vessel with crew, not as simple transport of goods. It is therefore taxed at the normal 18% with ITC rate, instead of the 5% concessional slab used for “transport of goods in a vessel” entries. No change under the new slab structure. |
| 9966 | Services by way of giving on hire – “(c) motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent. | 0% without ITC | 0% without ITC | Hire of vehicles used exclusively to transport students, faculty and staff to eligible educational institutions (up to higher secondary) is exempt. This special education related exemption is retained; your content can treat it as a 0% educational support service. |
| 996601 | Rental services of road vehicles including buses, coaches, cars, trucks and other motor vehicles, with or without operator | 5% without ITC / 12% with ITC / 18% with ITC | 5% without ITC / 18% with ITC | The 56th Council explicitly rationalises “renting of motor vehicles (where fuel cost is included)” and “renting of goods carriages”: concessional 5% without ITC continues, while the 12% full-ITC option shifts to 18% with ITC. Use 18% with ITC as the default for full credit scenarios under this SAC. |
| 996602 | Rental services of water vessels including passenger vessels, freight vessels etc with or without operator | 18% with ITC | 18% with ITC | Rental of vessels falls under the same heading but is not specifically called out in the rationalisation tables. It has generally attracted the standard 18% with ITC; that treatment continues post 22 Sep 2025 in the absence of a notified concessional rate. |
| 996603 | Rental services of aircraft including passenger aircrafts, freight aircrafts etc with or without operator | 18% with ITC | 18% with ITC | Aircraft rental for passenger or cargo operations is typically taxed at the standard 18% with ITC. The 56th Council’s logistics changes focus on motor vehicles, goods carriages and certain pipeline or container movements, so no slab shift is applied here. |
| 996609 | Rental services of other transport vehicles n.e.c. with or without operator | 18% with ITC | 18% with ITC | “Other transport vehicles” (not covered under specific concessional notifications) default to 18% with ITC both before and after GST 2.0. If any configuration falls under “motor vehicle with fuel included” it would follow the 5% without ITC / 18% with ITC pattern, but that is driven by the underlying contract conditions rather than the SAC alone. |
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.
Explore GST Rates
Explore HSN Codes
Frequently Asked Questions
-
What is SAC Code 9966 under GST?
SAC 9966 is used for rental services of transport vehicles with an operator. It covers hiring cars, buses, trucks and other vehicles where the owner provides both the vehicle and a driver or operator.
-
What services are covered under SAC Code 9966?
It includes renting passenger cars with drivers, hiring buses for staff or school transport, renting trucks or lorries with drivers, and similar transport rentals where control of the vehicle remains with the supplier and the customer gets transport service.
-
What is the GST rate for services under SAC Code 9966?
GST rate depends on the type of vehicle and contract. Many passenger transport rentals are taxed at 5% or 12% with conditions, while others may be 18%. You must match your service with the correct entry in the GST rate notification.
-
How is SAC Code 9966 used in GST filings?
You use SAC 9966 on invoices and while reporting outward supplies in GSTR-1. In returns you show taxable value, GST rate and tax amount under the correct SAC, so the classification is clear for you and your customers.
-
What is the description of SAC Code 9966?
SAC 9966 is generally described as “Rental services of transport vehicles with operators”. It covers both passenger and goods vehicles, as long as the supplier provides the vehicle together with a driver or operator as part of the service.
-
What is the 6-digit classification under SAC Code 9966?
Six-digit SACs under 9966 split services into finer groups like rental of cars, buses, heavy goods vehicles and special-purpose vehicles. Larger taxpayers and detailed invoices typically use these 6-digit codes for better reporting and compliance.
-
GST on SAC Code 9966 – How much tax is applicable?
There is no single flat rate. For example, renting motor cabs may attract 5% without ITC or 12% with ITC, and some goods vehicle rentals can be 18%. Always check the exact notification entry that matches your contract before charging GST.