Postal Services Under SAC Code 996811
Postal services cover mail, parcel and mailbox services used for sending letters, documents and small parcels. Operators provide collection, sorting, transmission and delivery of mail across cities and villages. Under GST, these postal and mailbox services are classified under SAC 996811. This SAC code and its GST rate decide how GST is charged on postal service charges outside statutory exemptions. This helps individuals and businesses send important mail safely across long distances.
Postal Services GST Rate for SAC Code 996811
Postal, courier and local delivery services under these codes are treated as mail and courier services under GST. Basic postal services by the government post office may have specific exemptions, but most commercial courier and parcel services are taxable.
After the September 2025 rationalisation, commercial courier and parcel delivery services are generally taxed at 18 percent with input tax credit, as they are business services that use vehicles, hubs and technology systems. Only those services that fall under a specific exemption, such as certain basic postal services, follow a different treatment.
The table below explains the current GST rate applicable to SAC code 996811 for typical postal, courier or local delivery services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996811 | Postal services including post office counter services, mailbox rental services. | 18% with ITC | 18% with ITC | 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) |
When issuing courier or delivery invoices under this SAC code, service providers should show the freight or service charge, the 18 percent GST rate and tax amount clearly. Business customers can then claim input tax credit wherever eligible and keep the same SAC and rate in GSTR 1 and GSTR 3B. This helps make GST reporting smooth for both service provider and client.
Explore Other SAC Codes Under 9968
These SAC codes belong to the postal and courier services group 9968, which covers government postal services, commercial courier services and local delivery solutions. Each six digit SAC within this heading captures a different type of mail or parcel service for GST reporting.
Below are the major related six-digit SAC codes under parent 9968
Service providers should identify whether they are offering basic statutory postal services, commercial courier or local delivery and then choose the appropriate SAC. Using the correct SAC and GST rate helps businesses pass on the right tax to customers, claim input tax credit correctly and handle GST audits more smoothly.
Conclusion
Postal services under SAC 996811 cover mail and parcel handling beyond basic statutory postal exemptions. Most commercial and value added postal services are taxed at 18 percent with input tax credit. Postal operators should separate exempt statutory services from taxable value added services, apply the correct GST rate on each and maintain clear records in GST returns. For mixed service models, it is wise to check the latest GST notifications and seek expert 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.