Rail Shunting Services Under SAC Code 996731
Rail shunting services cover arranging, pushing and pulling rail wagons within yards, sidings and terminals so that trains can be formed, broken and placed for loading or unloading. Operators use locomotives and yard equipment to manage smooth wagon movement. Under GST, these rail shunting and marshalling services are classified under SAC 996731. This SAC code and its GST rate decide how GST is charged on shunting fees. This helps rail yards work smoothly so that wagons are always positioned correctly for use.
Rail Shunting Services GST Rate for SAC Code 996731
Rail shunting services under SAC 996731 are treated as supporting services for rail transport under GST. They cover pushing, pulling and arranging wagons within yards, which are business to business services for rail operators and customers.
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 996731 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 |
|---|---|---|---|---|
| 996731 | Railway pushing or towing services | 18% with ITC | 18% with ITC | Classified under supporting services for railway transport in 99673. These fall under the generic supporting transport services entry, which is standard rated at 18% with ITC in Notification 11/2017 and not altered by the 56th Council rationalisation. |
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
Rail shunting services under SAC 996731 cover moving wagons within rail yards and sidings. These supporting services are usually taxed at 18 percent with input tax credit for rail operators and industrial users. Service providers should capture the correct SAC code on bills, apply the proper GST rate and keep the same classification in GST returns. For integrated rail logistics contracts, it is sensible to study the latest GST guidance and take professional 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.