9968 SAC Code: Postal & courier services

SAC Code 9968 is for "Postal and Courier Services". This code categorizes the services provided by postal and courier companies, including the transportation, delivery, and distribution of goods and documents. It encompasses a range of services such as mail delivery, package handling, express delivery, and tracking. SAC code 9968 serves as a classification in the GST system for these specific postal and courier services.

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Categorisation of SAC Code 9968

SAC Code 9968 under GST can be classified in the following ways:

SAC Code

996811

Description

Postal services including post office counter services, mailbox rental services.

New Rate

18 %
Standard

Old Rate

18 %

Notes

Standard taxable postal services (like counter services, P.O. box rentals, some agency functions) are at 18% with ITC. Core sovereign postal activities (basic mail, money orders etc. by the Department of Posts) continue to be covered by specific exemptions; those remain outside GST and are not affected by the 56th meeting changes. (Razorpay)

SAC Code

996812

Description

Courier services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Door-to-door courier, express parcel, speed-post-type commercial courier services are uniformly taxed at 18% with ITC. No slab change was announced for this SAC in the 56th Council decisions, so the rate continues at 18% under the new two-slab structure. (Razorpay)

SAC Code

996813

Description

Local delivery services

New Rate

18 %
Standard

Old Rate

18 %

Notes

The 56th Council specifically discussed “local delivery services” under this SAC and confirmed that the GST rate stays at 18% with ITC. Only the mechanism changes where some local deliveries supplied via e-commerce operators may fall under section 9(5), but the rate remains the same.

SAC Code

996819

Description

Other Delivery Services n.e.c

New Rate

18 %
Standard

Old Rate

18 %

Notes

Covers residual delivery services beyond standard postal and courier. These have been at 18% with ITC and are not singled out for any change in the 56th Council documents, so they continue at the standard 18% slab. (Razorpay)

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Scope of SAC Code 9968

The SAC code 9968 is assigned to postal and courier services, covering the transportation, delivery, and distribution of goods and documents. These services can be categorized into domestic courier services, used for sending packages within India, and international courier services, used for sending packages outside India. Domestic courier services further include standard and express options, while international courier services offer standard and express delivery with varying delivery times. Charges for these services depend on factors such as package weight, size, destination, and delivery timeframe.

Frequently Asked Questions

Clear answers to common queries about SAC Code 9968 and GST compliance.

What is SAC Code 9968 used for?

SAC 9968 is used for postal and courier services. It covers services provided by the postal department and private courier companies, such as collection, transport and delivery of letters, parcels, documents, speed post, express delivery and related handling activities.

What is the GST rate for SAC Code 9968?

Private courier and express delivery services under 9968 usually attract 18 % GST. Basic postal services provided by the government post office, such as money orders and post cards, have special treatment and some parts are exempt. You must separate government postal services from private courier services.

What is the 6 digit SAC Code for 9968?

Under 9968, 6 digit SACs distinguish between postal services, courier services and local delivery services. For example, one code covers post office counter services, another covers courier agencies and another covers local delivery. Businesses that issue detailed invoices should use the closest matching 6 digit code.

What is the description of SAC Code 9968?

The general description is “Postal and courier services”. It includes receiving, sorting, transporting and delivering letters and parcels, providing mail box rental, express delivery and tracking. It does not cover transport of bulk goods as a general transporter, which uses other SAC codes.

Does SAC Code 9968 cover cleaning and housekeeping services?

No. Cleaning, housekeeping or facility maintenance services do not fall under 9968. They are usually classified under cleaning or support services headings like 9985 or 9963. SAC 9968 is only for postal and courier type services.

Is TDS applicable on services under SAC Code 9968?

Yes, TDS can apply under section 194C for contracts with courier companies, since they provide carriage of goods. The payer must check value limits and deduct TDS at the applicable rate on the service value excluding GST, subject to normal income tax rules.

Which services or businesses fall under SAC Code 9968?

Businesses like India Post (for taxable services), private courier companies, express parcel services, document delivery firms and local document collection and delivery services typically use SAC 9968 when charging for the movement and delivery of documents and small parcels.

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.

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