Local Courier 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.

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996813 SAC Code GST Rate

Review old and new GST rates for Local Courier under 996813 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 996813 for typical postal, courier or local delivery services

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.

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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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

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996813 and GST compliance.

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.

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.

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.

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.

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.

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.