Courier Services Under SAC Code 996812
Courier services cover fast door to door pickup and delivery of parcels and documents using dedicated delivery networks. Operators provide tracking, proof of delivery and time bound delivery for business and retail customers. Under GST, these courier and parcel delivery services are classified under SAC 996812. This SAC code and its GST rate decide how GST applies on courier service invoices. This helps businesses and individuals send time sensitive parcels quickly and safely.
Courier Services GST Rate for SAC Code 996812
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 996812 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 |
|---|---|---|---|---|
| 996812 | Courier services | 18% with ITC | 18% with ITC | 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) |
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
Courier services under SAC 996812 cover fast parcel pickup and delivery for business and retail customers. These services usually attract 18 percent GST with input tax credit. Courier companies and aggregators should classify their services properly, apply the correct GST rate on freight invoices and keep the same SAC and rate in GST returns. For cross border shipments and special schemes, it is sensible to review the latest GST guidance.
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.