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

The 5% option allows credit only on same-line input services (for example hiring another cab operator), capped at 5%; the supplier may instead charge 18% with full credit. It applies only when fuel is included in the rent; renting without an operator is taxed at the vehicle's own rate. From 1 Nov 2026 the same choice applies to renting an electric vehicle (including e-bicycles) for passengers with battery charging included. From 1 Nov 2026, when a supplier other than a body corporate rents a passenger vehicle with fuel included to a body corporate, the body corporate pays the tax under reverse charge unless the supplier charges 18%. Source: Notification 11/2017-Central Tax (Rate), S. No. 10(i) and 10(ib), as amended by Notification 06/2026-Central Tax (Rate); Notification 13/2017-Central Tax (Rate), S. No. 15, as amended by Notification 08/2026-Central Tax (Rate).

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

The 5% option allows credit only on same-line input services (for example hiring another cab operator), capped at 5%; the supplier may instead charge 18% with full credit. It applies only when fuel is included in the rent; renting without an operator is taxed at the vehicle's own rate. From 1 Nov 2026 the same choice applies to renting an electric vehicle (including e-bicycles) for passengers with battery charging included. From 1 Nov 2026, when a supplier other than a body corporate rents a passenger vehicle with fuel included to a body corporate, the body corporate pays the tax under reverse charge unless the supplier charges 18%. Source: Notification 11/2017-Central Tax (Rate), S. No. 10(i) and 10(ib), as amended by Notification 06/2026-Central Tax (Rate); Notification 13/2017-Central Tax (Rate), S. No. 15, as amended by Notification 08/2026-Central Tax (Rate).

Description

Other Rental services of Transport vehicles with or without operators

Notes

Generic rental of transport vehicles (buses, trucks, cars, vessels, aircraft) with or without operator, where no specific exemption or concessional entry applies, is 18% with ITC. From 1 Nov 2026 renting an electrically operated vehicle (including e-bicycles) for passengers or goods with battery charging included leaves this residual rate and can be charged 5% with same-line credit only or 18% with full ITC. Source: Notification 11/2017-Central Tax (Rate), S. No. 10(ib), 10(ic) and 10(iii), as amended by Notification 06/2026-Central Tax (Rate).

Description

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

Notes

Credit is allowed on input services and on ships or vessels, but not on other goods. Source: Notification 11/2017-Central Tax (Rate), S. No. 10(ii) as substituted by 01/2018.

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 5% (same-line credit only) or 18% with ITC election applies to renting a motor vehicle or goods carriage with fuel included and, from 1 Nov 2026, to renting an electric vehicle (including e-bicycles) for passengers or goods with charging included. Other rentals with an operator are 18%, renting without an operator is taxed at the vehicle's own rate, and hiring a bus to a state transport undertaking or a goods vehicle to a GTA is Nil. From 1 Nov 2026, when a supplier other than a body corporate rents a passenger vehicle with fuel included to a body corporate, the body corporate pays the tax under reverse charge unless the supplier charges 18%. Source: Notification 11/2017-Central Tax (Rate), S. No. 10(i), 10(ia), 10(ib), 10(ic) and 10(iii), as amended by Notification 06/2026-Central Tax (Rate); Notification 12/2017-Central Tax (Rate), S. No. 22; Notification 13/2017-Central Tax (Rate), S. No. 15, as amended by Notification 08/2026-Central Tax (Rate).

Description

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

Notes

Renting a vessel with an operator is 18%, but time charter of a vessel for transport of goods is 5%; renting a vessel without an operator is taxed at the vessel's own rate. Source: Notification 11/2017-Central Tax (Rate), S. No. 10(ii),(iii) and 17(viia).

Description

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

Notes

Renting an aircraft with an operator is 18%; leasing an aircraft without an operator is taxed at the aircraft's own rate (5% ordinarily, 40% for aircraft for personal use). Source: Notification 11/2017-Central Tax (Rate), S. No. 10(iii) and 17(viia); Notification 09/2025-Central Tax (Rate).

Description

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

Notes

Other transport vehicles not covered by a specific entry default to 18% with ITC. A motor vehicle rented with fuel included, or from 1 Nov 2026 an electrically operated vehicle (including e-bicycles) rented with battery charging included, follows the 5% without ITC (same-line credit only) or 18% with ITC pattern, driven by the contract terms rather than the SAC alone. Source: Notification 11/2017-Central Tax (Rate), S. No. 10(i), 10(ia), 10(ib), 10(ic) and 10(iii), as amended by Notification 06/2026-Central Tax (Rate).