Gas Distribution Under SAC Code 996913

Gas distribution services cover pipeline based supply of natural gas and similar fuels to homes, commercial buildings and industrial units. Providers operate pipelines, pressure control systems and metering so that customers get safe and reliable gas supply. Under GST, these gas distribution services are classified under SAC 996913. This SAC code and its GST treatment decide how GST is charged on gas distribution charges and related service fees.

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996913 SAC Code GST Rate

Review old and new GST rates for Gas Distribution under 996913 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 996913, showing the standard 18 % slab where taxable and any exempt utility cases as per notification.

SAC Code

996913

Description

Gas distribution services

New Rate

18 %
Standard

Old Rate

18 %

Notes

City gas, piped gas and similar distribution services under this SAC have consistently been taxed at 18% with ITC. The 56th Council rate rationalisation does not introduce a specific concession or change for this sub-code, so it continues at 18%.

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

Gas distribution services under SAC 996913 cover pipeline based supply of gas to homes and industrial users. Depending on the provider and notification, some supplies may enjoy exemptions while others are taxable, usually at 18 % with input tax credit on the service component. Gas distributors should classify their supplies correctly, use SAC 996913 on invoices, apply the proper GST rate and align GST returns with the same treatment.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996913 and GST compliance.

What is SAC code 996913 in GST for gas distribution?

SAC 996913 covers distribution services for natural gas and similar fuels through pipelines to homes, commercial establishments and industries. The actual supply of gas is treated as goods under its HSN, while certain service elements like connection charges may be treated as services under this SAC.

Does SAC 996913 cover pipeline distribution of natural gas to homes and industries?

Yes. Piped natural gas supply networks that deliver gas from city gate stations to households, restaurants and factories involve distribution activities classified under SAC 996913. However, GST treatment usually looks at the main supply as goods, with related service components taxed separately as services where applicable.

What GST rate applies to gas distribution services under SAC 996913?

The main charge for gas units consumed is taxed as supply of goods at the GST rate applicable for that gas HSN, not as a service. Separate service fees like connection, meter installation or maintenance, if charged, are generally taxed at 18% as services linked to distribution.

Are PNG and CNG supply billed using SAC 996913?

Bills for PNG or CNG mainly show HSN codes for gas as goods. SAC 996913 is more relevant for classifying standalone distribution services or fees in records. Businesses should check their tariff structure to see which line items are goods and which are service charges under GST.

Can gas distributors claim ITC on GST paid for SAC 996913 services and inputs?

Gas distributors can usually claim ITC on inputs and input services used for their taxable supplies of gas, subject to normal conditions. Where some activities are exempt or subsidised, credit may need to be apportioned. End users can claim ITC on GST charged, if the gas is used for taxable output.

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.