Cold Storage 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.

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996721 SAC Code GST Rate

Review old and new GST rates for Cold Storage under 996721 SAC Code.

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.

SAC Code

996721

Description

Refrigerated storage services

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

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Explore More SAC Codes Under 9967

Practical Classification Guidance

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996721 and GST compliance.

What does SAC code 996721 cover in GST?

SAC 996721 covers temperature-controlled and refrigerated storage services. It includes cold storage for fruits, vegetables, dairy, meat, pharmaceuticals and other goods needing specific temperature or humidity, provided by cold warehouses and distribution centres charging storage or handling fees to customers.

Does SAC 996721 include temperature-controlled and refrigerated storage services?

Yes. Services where goods are stored in cold rooms, blast freezers, chillers or refrigerated warehouses fall under SAC 996721. It covers both long term and short term storage, as well as associated handling within the cold facility that is integral to the storage service.

What is the GST rate on cold storage services under SAC 996721?

GST treatment depends on goods stored. Storage of agricultural produce is often exempt, while storage of processed foods, medicines or other goods is typically taxed at 18%. The same SAC code applies, but whether GST is charged and at what rate depends on the item and notifications.

Are agricultural and food products stored in cold warehouses billed under SAC 996721?

Yes. Whether exempt or taxable, cold storage services for agricultural or processed food products are classified under SAC 996721. Invoices may show zero GST for exempt produce or applicable GST for others, but the classification as refrigerated storage remains the same for all such services.

Is ITC available on GST paid for SAC 996721 services?

When cold storage services are taxable and used for business, recipients can normally claim ITC on GST charged. For exempt cold storage services, customers do not pay GST, so ITC does not arise. Cold storage operators can claim ITC on inputs used for their taxable storage services.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.