Cold Storage Services Under SAC Code 996721
Cold storage services cover temperature controlled storage of perishable goods such as fruits, vegetables, dairy items, meat, pharmaceuticals and frozen products. Operators maintain specific temperature and humidity levels so that goods remain safe and saleable. Under GST, these cold storage and refrigerated warehousing services are classified under SAC 996721. This SAC code and its GST rate decide how GST applies on cold storage bills. This helps businesses protect sensitive goods and reduce wastage due to spoilage.
Cold Storage Services GST Rate for SAC Code 996721
Cold storage services under SAC 996721 are treated as storage and warehousing services under GST. Certain cold storage services for specified agricultural produce may enjoy concessional or exempt treatment, while others are fully taxable.
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 996721 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 |
|---|---|---|---|---|
| 996721 | Refrigerated storage services | 18% with ITC | 18% with ITC | For non-agricultural goods, refrigerated storage is treated as storage and warehousing and generally taxed at 18% with ITC. Storage of agricultural produce continues to enjoy exemption / 0% under the existing exemption notification, which remains intact after 22 Sep 2025. So the standard taxable case stays at 18% with ITC; agri-produce storage remains exempt. |
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
Cold storage services under SAC 996721 cover refrigerated storage for perishable goods. Many business to business cold storage services are taxable at 18 percent with input tax credit, while certain services for specified agricultural produce can have concessional or exempt treatment. Cold storage operators and clients should check the exact category of goods, apply the correct GST rate on storage bills and keep clear records in GST returns. For mixed commodities, it is wise 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.