--- title: "Rail Shunting Services | Professional Rail Shunting Solutions" description: "Expert rail shunting services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 996731." canonical: "https://busy.in/sac-code-996731/" --- # Rail Shunting under SAC Code 996731 Part of [SAC 9967: Supporting services in transport](https://busy.in/sac-code-9967/). 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. ## 996731 SAC Code GST rate 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.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 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. ## 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 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. ## Frequently asked questions ### What is SAC code 996731 in GST for rail shunting? SAC 996731 covers shunting, pushing, towing and marshalling of railway rolling stock in yards, sidings and terminals. It includes rearranging wagons, moving rakes within yards and positioning trains for loading, unloading or departure as a separate support service to main rail transport. ### Does SAC 996731 cover railway pushing, towing and shunting operations? Yes. Services where locomotives or shunting engines move wagons within a yard, assemble trains or shift rakes between sidings fall under SAC 996731. These are support activities that help rail operators and freight customers manage cargo movement but are not line-haul transport themselves. ### What GST rate applies to rail shunting services under SAC 996731? Rail shunting and yard operations are generally taxable at 18% as support services to transport. GST is levied on the service fees charged by yard operators, private siding owners or rail companies for performing these shunting and marshalling activities for customers. ### Should siding and yard operators use SAC 996731 on their invoices? Yes. Owners or operators of private sidings, industrial yards or terminals that charge for shunting or receiving rail rakes should quote SAC 996731 on invoices. This clarifies that the service is a rail support operation and helps recipients correctly classify input services in their GST records. ### Can rail operators claim ITC on SAC 996731 services? Rail operators and industrial users who pay GST on shunting services and use them for taxable freight or business activities can usually claim ITC. They must hold proper tax invoices, ensure GST is paid and record the services as part of their eligible input credits. ## Explore more ### Other SAC services under 9967 - [996711: Container Handling](https://busy.in/sac-code-996711/) - [996712: Customs Clearance](https://busy.in/sac-code-996712/) - [996713: Freight Forwarding](https://busy.in/sac-code-996713/) - [996719: Cargo Handling](https://busy.in/sac-code-996719/) - [996721: Cold Storage](https://busy.in/sac-code-996721/) - [996722: Chemical Storage](https://busy.in/sac-code-996722/) - [996729: Logistics Warehousing](https://busy.in/sac-code-996729/) - [996739: Rail Logistics](https://busy.in/sac-code-996739/) - [996741: Passenger Transport](https://busy.in/sac-code-996741/) - [996742: Road Maintenance](https://busy.in/sac-code-996742/) - [996743: Car Parking](https://busy.in/sac-code-996743/) - [996744: Car Towing Service](https://busy.in/sac-code-996744/) - [996749: Roadside Assistance](https://busy.in/sac-code-996749/) - [996751: Port Operation](https://busy.in/sac-code-996751/) - [996752: Pilotage](https://busy.in/sac-code-996752/) - [996753: Marine Rescue](https://busy.in/sac-code-996753/) - [996759: Marine Support](https://busy.in/sac-code-996759/) - [996761: Airport Management](https://busy.in/sac-code-996761/) - [996762: Atc](https://busy.in/sac-code-996762/) - [996763: Airport Assistance](https://busy.in/sac-code-996763/) - [996764: Space Mission](https://busy.in/sac-code-996764/) - [996791: Road Transport](https://busy.in/sac-code-996791/) - [996792: Goods Transport](https://busy.in/sac-code-996792/) - [996793: Cargo Delivery Service](https://busy.in/sac-code-996793/) - [996799: Cargo Handling](https://busy.in/sac-code-996799/) ### All SAC headings - [99: All Services Accounting](https://busy.in/sac-code-99/) - [9954: Services in building & construction](https://busy.in/sac-code-9954/) - [9961: Services in wholesale trade](https://busy.in/sac-code-9961/) - [9962: Services in retail trade](https://busy.in/sac-code-9962/) - [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/) - [9964: Passenger transport services](https://busy.in/sac-code-9964/) - [9965: Goods transport services](https://busy.in/sac-code-9965/) - [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/) - [9967: Supporting services in transport](https://busy.in/sac-code-9967/) - [9968: Postal & courier services](https://busy.in/sac-code-9968/) - [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/) - [9971: Financial & related services](https://busy.in/sac-code-9971/) - [9972: Real estate services](https://busy.in/sac-code-9972/) - [9973: Leasing or rental services](https://busy.in/sac-code-9973/) - [9981: Research & development services](https://busy.in/sac-code-9981/) - [9982: Legal & accounting services](https://busy.in/sac-code-9982/) - [9983: Professional, technical & business services](https://busy.in/sac-code-9983/) - [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/) - [9985: Support services to business](https://busy.in/sac-code-9985/) - [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/) - [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/) - [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/) - [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/) - [9991: Public administration & other services](https://busy.in/sac-code-9991/) - [9992: Education services](https://busy.in/sac-code-9992/) - [9993: Human health & social care services](https://busy.in/sac-code-9993/) - [9994: Sewage & waste collection](https://busy.in/sac-code-9994/) - [9995: Services of membership organizations](https://busy.in/sac-code-9995/) - [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/) - [9997: Other Services](https://busy.in/sac-code-9997/)