Logistics Warehousing Under SAC Code 996729

Logistics warehousing services cover general storage, inventory management and distribution support for manufacturers, traders and e commerce businesses. Operators provide space, racking, handling and value added services such as packing and kitting. Under GST, these logistics warehousing and storage services are classified under SAC 996729. This SAC code and its GST rate decide how GST applies on warehousing charges.  This helps businesses convert storage into a managed logistics solution instead of just raw space.

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996729 SAC Code GST Rate

Review old and new GST rates for Logistics Warehousing under 996729 SAC Code.

Logistics warehousing services under SAC 996729 are treated as storage, warehousing and logistics support services under GST. These services are a key part of supply chain and distribution networks and are normally 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 996729 for typical supporting transport and warehousing services.

SAC Code

996729

Description

Other storage and warehousing services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Same group as 996722. Recent SAC rate charts show 18% for other storage and warehousing, with separate exemptions only for clearly defined agricultural or sports linked services. No specific 56th Council change is notified for this code, so 18% with ITC remains the standard.

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

Logistics warehousing services under SAC 996729 cover general warehousing, distribution and value added logistics support. These services typically attract 18 percent GST with input tax credit for business customers. Warehouse operators and 3PL providers should classify services properly, apply the right GST rate on invoices and keep consistent disclosure in GST returns. For multi state and multi client networks, it is wise to review the latest GST notifications and consult a tax expert.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996729 and GST compliance.

What does SAC code 996729 cover in GST?

SAC 996729 covers general warehousing, storage and third-party logistics (3PL) storage services not otherwise classified. It includes storage of finished goods, raw materials, consumer products and other items in warehouses where businesses pay rent or storage fees for space and handling.

Does SAC 996729 include general warehousing and third-party logistics storage services?

Yes. Distribution centres, 3PL warehouses and fulfilment centres that store goods for multiple clients typically classify their storage and basic handling services under SAC 996729. It applies whether the warehousing is for retail, e-commerce, manufacturing or other commercial supply chains.

What is the GST rate on logistics warehousing under SAC 996729?

General warehousing and storage services are usually taxed at 18% under GST, except for specific exemptions like storage of certain agricultural produce. For most commercial products, warehouse operators charge GST on storage and handling fees and pass it on through tax invoices to clients.

Should 3PL and distribution centres use SAC 996729 for storage charges?

Yes. Third-party logistics providers and distribution centres should normally use SAC 996729 on invoices for storage and basic in-warehouse handling. Separate value-added services like packaging, labelling or transport might have different SAC codes, but warehousing itself is classified under this general storage heading.

Is ITC available on GST paid for SAC 996729 services?

Businesses using warehousing for taxable supplies can claim ITC on GST charged under SAC 996729, subject to normal conditions. Warehousing companies themselves can also claim ITC on eligible inputs like rent, security and equipment used to provide taxable storage services to their clients.

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.