Local Courier Services Under SAC Code 996813
Local courier services cover quick pickup and delivery of parcels and documents within a city or nearby region. Operators use bikes, scooters and small vehicles to complete same day or next day deliveries. Under GST, these local courier and local delivery services are classified under SAC 996813. This SAC code and its GST rate decide how GST is charged on local delivery bills. This helps local shops and customers complete city deliveries without building their own fleet.
Local Courier Services GST Rate for SAC Code 996813
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 996813 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 |
|---|---|---|---|---|
| 996813 | Local delivery services | 18% with ITC | 18% with ITC | 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. |
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
Local courier services under SAC 996813 cover quick city level deliveries of parcels and documents. These services are generally taxed at 18 percent with input tax credit for business users. Local delivery operators and platforms should map their services to the correct SAC, apply the right GST rate on delivery charges and maintain consistent reporting in GST returns. For small value or exempt supplies, it is wise to study the latest GST rules and consult a tax professional if needed.
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.
Frequently Asked Questions
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What does SAC code 996813 cover in GST?
SAC 996813 covers local same day parcel and document delivery within a city or nearby area. It includes bike, van or small vehicle delivery where pickup and drop are in the same region and service is offered as a quick local courier solution.
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Does SAC 996813 include local same day parcel and document delivery services?
Yes. Point to point deliveries, urgent paper drops, local packet delivery, intra city bike courier and similar local runs come under SAC 996813. The key point is that both pickup and delivery are within a limited local area and handled as a same day courier service.
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What is the GST rate on local courier services under SAC 996813?
Local courier services under SAC 996813 are generally taxed at 18% under GST. The tax is charged on the courier charges mentioned in the bill. Any special schemes or exemptions, for example for government postal work, need to be checked in the latest GST notifications.
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Should intra city bike or van deliveries use SAC 996813 on invoices?
Yes. If you run a local delivery business and move parcels or documents within the same city using bikes, autos or vans, you should usually mention SAC 996813 on invoices. This keeps classification simple and helps your customers take input tax credit where they are eligible.
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Is ITC available on GST paid for SAC 996813 services?
Registered businesses using local courier services for their taxable supplies or exports can usually claim input tax credit on the GST paid, if other conditions are met. Courier companies can also claim ITC on their own input services and expenses used to provide taxable courier services.