Chemical Storage Under SAC Code 996722

Chemical storage services cover safe storage of chemicals, industrial liquids, gases and hazardous materials in dedicated tanks, warehouses and terminals. Operators follow strict safety, segregation and environment norms while handling these products. Under GST, such chemical and hazardous goods storage services are classified under SAC 996722. This SAC code and its GST rate decide how GST is charged on storage fees.  This helps industries store risky materials safely while meeting regulatory requirements.

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996722 SAC Code GST Rate

Review old and new GST rates for Chemical Storage under 996722 SAC Code.

Chemical storage services under SAC 996722 are treated as storage and warehousing of hazardous and industrial goods under GST. These services are generally taxable because they are input intensive and risk heavy activities.

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 996722 for typical supporting transport and warehousing services.

SAC Code

996722

Description

Bulk liquid or gas storage services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Storage and warehousing under 99672 is treated as supporting services in transport. Classification annexure and rate notification link this group to the standard supporting services entry which is at 18% with ITC; the 56th Council changes do not specifically re-rate this code, so the rate continues unchanged for typical taxable cases.

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

Chemical storage services under SAC 996722 cover storage of chemicals and hazardous materials. These input intensive services are usually taxed at 18 percent with input tax credit. Terminal operators and industrial users should frame contracts with clear GST clauses, apply the proper rate on storage invoices and maintain detailed safety and tax records. For cross border or bonded storage, it is sensible to study the latest GST rules and seek expert advice.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996722 and GST compliance.

What is SAC code 996722 in GST for chemical storage services?

SAC 996722 covers bulk storage services for liquids, gases and industrial chemicals in tanks, terminals and depots. It includes storage of petroleum products, chemicals, industrial gases and similar materials where customers pay storage or tank rental charges to the facility operator.

Does SAC 996722 cover bulk storage of liquids, gases and industrial chemicals?

Yes. Storage in tank farms, gas terminals, chemical depots and bulk liquid facilities for industrial clients is normally classified under SAC 996722. It applies whether goods are stored for import, export, domestic distribution or as part of production and logistics arrangements.

What GST rate applies to chemical storage services under SAC 996722?

Chemical and bulk liquid storage services are generally taxable at 18% under GST. The tax is levied on storage or tank rental charges billed by the facility. There are usually no basic exemptions for industrial chemical storage, so operators charge GST on these service fees.

Should hazardous material warehouses use SAC 996722 on invoices?

Yes. Warehouses and terminals storing hazardous or regulated liquids and gases for clients should normally use SAC 996722 on invoices for storage and related handling services. This applies even when there are additional safety, compliance and monitoring services bundled with the storage service.

Can businesses claim ITC on GST paid for SAC 996722 services?

Industrial customers using such storage for their taxable manufacturing or trading activities can typically claim ITC on GST charged under SAC 996722. They need valid tax invoices and must ensure that the stored goods relate to taxable or zero rated outputs to keep the credits admissible.

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.