Courier 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.

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996812 SAC Code GST Rate

Review old and new GST rates for Courier under 996812 SAC Code.

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.

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)

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.

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Explore More SAC Codes Under 9968

Practical Classification Guidance

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996812 and GST compliance.

What is SAC code 996812 in GST for courier services?

SAC 996812 covers courier services for collection, transport and delivery of documents and parcels, both within India and internationally. It includes door-to-door express services provided by private courier companies and similar operators who handle fast and secure deliveries.

Does SAC 996812 cover domestic and international parcel and document delivery?

Yes. Domestic overnight couriers, same-day intercity deliveries and international document or parcel services offered by courier companies are normally classified under SAC 996812. The service covers pickup, sorting, carriage and final delivery of consignments to customers.

What GST rate applies to courier services under SAC 996812?

Courier services under SAC 996812 are generally taxable at 18% under GST. GST is charged on the courier charges billed to customers for both domestic and international consignments, unless any special export-related benefits or zero rating applies for certain outbound services.

Are same-day and express deliveries also billed under SAC 996812?

Yes. Same-day, express and time-definite deliveries are still courier services and are classified under SAC 996812. The faster service level changes the price, not the SAC code. Providers should mention this SAC on all tax invoices for such courier services.

Can businesses claim ITC on GST paid for SAC 996812 services?

Registered businesses using couriers to send documents, parcels or goods for their taxable activities can usually claim ITC on GST paid, subject to general rules. They should keep proper courier invoices with GST details and ensure these expenses relate to taxable or zero rated outward supplies.

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.