Freight Forwarding Services Under SAC Code 996713
Freight forwarding services cover arranging complete movement of cargo from shipper to consignee using one or more transport modes. Forwarders coordinate booking, documentation, consolidation and delivery with multiple carriers and agents. Under GST, these freight forwarding and logistics coordination services are classified under SAC 996713. This SAC code and its GST rate decide how GST applies on forwarding charges. This helps shippers use one point contact for complete movement instead of dealing with many carriers.
Freight Forwarding Services GST Rate for SAC Code 996713
Freight forwarding services under SAC 996713 are treated as logistics support and coordination services under GST. The tax position depends on whether the forwarder is acting as principal or agent and on the place of supply rules for international legs.
After the September 2025 rationalisation, most supporting transport services and warehousing services under these codes generally fall in the 18 percent slab with input tax credit, as they are business focused and input intensive. Certain cold storage services for specified agricultural produce or essential goods may have concessional or exempt treatment as per the latest notifications.
The table below explains the current GST rate applicable to SAC code 996713 for typical supporting transport and warehousing services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996713 | Clearing and forwarding services | 18% with ITC | 18% with ITC | Clearing and forwarding services are standard-rated at 18% with ITC both before and after 22 Sep 2025. No separate rationalisation entry is issued for this SAC in the 56th Council outcomes. |
When issuing invoices under this SAC code, service providers should clearly show the service value, the GST rate and tax amount so that clients can book the expense and claim input tax credit correctly. The same SAC code and rate should be used consistently in GSTR 1 and GSTR 3B to keep GST records clear and easy to justify during assessment.
Explore Other SAC Codes Under 9967
This SAC code is part of the supporting services in transport group 9967, which covers cargo handling, customs clearance, freight forwarding, storage, warehousing and other logistics support services. The six digit SAC codes under this group help split different logistics functions for better GST classification.
Below is a list of related six-digit SAC codes under 9967
Logistics and warehousing businesses should select the SAC code that most closely matches the main service they provide. Using the correct SAC and applying the 18 percent GST slab with input tax credit, or any concessional treatment where notified, helps avoid disputes and keeps the input tax credit trail clean for both service providers and customers.
Conclusion
Freight forwarding services under SAC 996713 cover complete logistics coordination from shipper to consignee. These services generally attract 18 percent GST with input tax credit for business users, subject to specific rules on export segments and place of supply. Forwarders and customers should define roles clearly, apply the right GST treatment on forwarding invoices and keep proper documentation in GST returns. For complex multimodal and cross border flows, it is wise to take professional tax advice.
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.