9966 SAC Code: Rental services of transport vehicles

Description

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.

Notes

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.

Description

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.

Notes

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%.

Description

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.

Notes

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.

Description

Other Rental services of Transport vehicles with or without operators

Notes

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.

Description

(ii) Time charter of vessels for transport of goods.

Notes

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.

Description

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.

Notes

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.

Description

Rental services of road vehicles including buses, coaches, cars, trucks and other motor vehicles, with or without operator

Notes

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.

Description

Rental services of water vessels including passenger vessels, freight vessels etc with or without operator

Notes

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.

Description

Rental services of aircraft including passenger aircrafts, freight aircrafts etc with or without operator

Notes

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.

Description

Rental services of other transport vehicles n.e.c. with or without operator

Notes

“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.