Transport Vehicle Rental Services Under SAC Code 996609
Transport vehicle rental services cover renting special transport vehicles that do not fall in common car or bus rental categories. This includes cranes, trailers, material handling vehicles and other dedicated fleet used for construction, projects and logistics work. Under GST, such other transport vehicle rental services are classified under SAC 996609. This SAC code and its GST rate decide how GST is charged on these rental invoices. This helps project and logistics users access the right specialised vehicles without buying them.
Transport Vehicle Rental Services GST Rate for SAC Code 996609
Transport vehicle rental services under SAC 996609 are treated as rental services of transport equipment under GST. Earlier, there were different views on whether such rentals should follow passenger transport style rates or standard business service rates, especially when vehicles were used only for projects.
After the September 2025 rationalisation, most other transport vehicle rental services under this code generally fall in the 18 percent slab with input tax credit, because they are business to business services used in construction, logistics and industrial projects. In limited passenger transport linked cases, special treatments may apply as per the latest notifications.
The table below shows the latest standard GST rate for SAC code 996609 for typical transport vehicle rental services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
When issuing rental invoices under this SAC code, service providers should clearly show the rental amount, any fuel or operator charges, the applicable GST rate and tax value. Business customers can then claim input tax credit correctly wherever allowed. The same SAC code and rate should be reflected in GSTR 1 and GSTR 3B so that GST records remain 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 along with certain support services for transport operations. The six digit SAC codes under this group help separate pure rental models from other transport services for GST reporting.
Below is a list of related six-digit SAC codes under 9966
Service providers should choose the SAC code that best represents whether they are renting transport equipment, providing drivers or offering other 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
Transport vehicle rental services under SAC 996609 cover renting specialised transport vehicles like cranes, trailers and project vehicles. These rentals now typically attract 18 percent GST with input tax credit for eligible business users. Rental companies and project owners should frame contracts clearly, apply the right GST rate on rental bills and keep proper documentation in GST returns. For mixed use or long term lease type structures, it is sensible to review the latest GST guidance 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.