Boat Rental Services Under SAC Code 996602
Boat rental services cover renting boats, ferries and other water vessels for passenger or cargo use on rivers, lakes and coastal waters. Operators provide the vessel with or without crew for fixed routes, events or projects. Under GST, such water vessel rental and charter services are classified under SAC 996602. This SAC code and its GST rate decide how GST applies on boat rental bills. This helps operators support tourism, events and project work on water routes.
Boat Rental Services GST Rate for SAC Code 996602
Boat rental services under SAC 996602 are treated as rental services of water vessels under GST. The taxability can vary based on whether the rental is for transport, tourism, events or project work.
After the September 2025 rationalisation, most vehicle, boat and aircraft rental services under these codes generally fall in the 18 percent slab with input tax credit, as they are input intensive business services. In limited passenger transport linked cases, other specific treatments may apply based on the latest notifications.
The table below shows the latest standard GST rate for SAC code 996602 for typical rental services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
When issuing rental invoices under this SAC code, service providers should clearly show the rental amount, the applicable GST rate and tax value so that business customers can account for the expense and input tax credit correctly. The same SAC code and rate should then be reflected in GSTR 1 and GSTR 3B for outward supplies to keep GST records clear and consistent.
Explore Other SAC Codes Under 9966
This SAC code is part of the rental and support services to transportation group 9966, which covers renting of vehicles, vessels and aircraft, cargo handling, storage and other allied support services. The six digit codes under this group help separate pure rental, warehousing and operational support for GST reporting.
The list below highlights key six-digit SAC codes under 9966
Service providers should choose the SAC code that best represents whether they are renting transport assets, handling cargo or providing warehousing and support. Correct SAC selection and GST rate application help businesses claim input tax credit properly and make GST returns easier to explain during audits or departmental checks.
Conclusion
Boat rental services under SAC 996602 cover renting boats and other water vessels for passenger or cargo use, tourism and events. These services generally fall in the 18 percent GST slab with input tax credit for business users, though some specific transport linked cases may have different treatment. Operators should identify the main purpose of each rental, apply the appropriate GST rate on invoices and keep the same classification in GST returns. For large project and offshore work, it is wise to review the latest GST notifications and consult a tax professional.
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.