Electricity Transmission Under SAC Code 996911

Electricity transmission services cover high voltage transfer of power from generating stations to grid substations through authorised networks. Utilities maintain lines, towers, protection systems and control rooms so that power reaches distribution points safely and with minimal loss. Under GST, these electricity transmission services are classified under SAC 996911. This SAC code and its GST treatment decide how GST applies on transmission charges billed by utilities. This helps keep bulk power movement efficient.

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996911 SAC Code GST Rate

Review old and new GST rates for Electricity Transmission under 996911 SAC Code.

Electricity, gas, water and similar utility distribution services under these codes are treated as utility supply and distribution services under GST. In many cases, supply or transmission by recognised utilities enjoys specific exemptions, while commercial or non utility distribution may be taxable.

After the September 2025 rationalisation, wherever these utility services are taxable, the service component is generally placed in the 18 % slab with input tax credit, because network operation and distribution are input intensive. Where services continue to enjoy a notified exemption or zero effective rate, that treatment remains available as per the latest GST notifications.

The table below gives the broad GST treatment for SAC code 996911, showing the standard 18 % slab where taxable and any exempt utility cases as per notification.

SAC Code

996911

Description

Electricity transmission services( by an electricity transmission or distribution utility.)

New Rate

0 %
Exempted

Old Rate

0 %

Notes

Transmission or distribution of electricity by an authorised electricity transmission or distribution utility is covered by a standing exemption notification (Nil GST). The 56th Council rationalisation focuses on slab rates and does not disturb this specific exemption, so it remains 0% (no ITC).

Utility providers and industrial park operators should carefully check whether their supply falls under an exempt utility category or a taxable commercial service. Invoices should clearly mention the SAC code, applicable GST rate in % and tax amount so that customers can account for input tax credit correctly where eligible and keep the same treatment in GSTR 1 and GSTR 3B.

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Explore More SAC Codes Under 9969

Practical Classification Guidance

Utility providers, industrial park operators and large consumers should identify whether their contracts relate to exempt utility supply by recognised utilities or taxable commercial distribution services. Using the correct SAC and GST rate in %, and disclosing exemptions properly, helps avoid classification disputes and keeps the input tax credit trail clean for all parties.

Conclusion

Electricity transmission services under SAC 996911 cover bulk movement of power from generating stations to grid substations. Many such services by recognised utilities continue to enjoy specific exemptions, while other taxable cases generally follow the 18 % slab with input tax credit. Utilities and transmission licensees should review their contracts, check the latest GST notifications and apply the correct combination of SAC, rate and exemption while issuing invoices and filing GST returns.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996911 and GST compliance.

What is SAC code 996911 in GST for electricity transmission services?

SAC 996911 covers electricity transmission services, mainly movement of power over high voltage lines operated by state or private utilities. In many cases the activity of transmission or distribution of electricity by an authorised utility is treated as exempt from GST rather than a taxable service.

Does SAC 996911 cover power transmission by state or private utilities?

Yes. When an electricity transmission utility moves power from generating stations to distribution networks using transmission lines, that service is classified under SAC 996911. For authorised utilities, such transmission is generally covered under specific exemption entries in GST notifications, subject to conditions.

What GST rate applies to electricity transmission under SAC 996911?

Transmission of electricity by an authorised transmission utility is typically exempt from GST. So there is no GST on the transmission charge itself. However, some related services like consultancy, renting or construction for transmission projects may be separately taxable at normal rates when billed independently.

Is electricity transmission under SAC 996911 exempt from GST in some cases?

Yes. In practice, transmission of electricity by recognised transmission utilities is treated as an exempt service. This means no GST is charged to distribution companies for that transmission. Businesses should still check current exemption lists to confirm that their particular service and provider qualify for this relief.

Can utilities claim ITC on inputs used for SAC 996911 services where GST is charged?

Where the main outward supply of electricity transmission is exempt, full ITC on inputs related only to that activity is generally not available. However, utilities may claim ITC on taxable outward supplies or on mixed-use inputs as per GST rules and proportionate credit provisions.

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.