Parcel Packing Services Under SAC Code 998541
Parcel packing services cover specialised packing and gift wrapping of goods into boxes, cartons or parcels before they are handed over to the courier or transporter. Small online sellers, logistics companies and retail shops often outsource this work so that every shipment reaches the customer in a safe and presentable condition. Under GST, these services fall under SAC 998541 and the applicable GST rate under this code decides how much tax is charged on the packing fee.
Parcel Packing Services GST Rate for SAC Code 998541
Under SAC 998541, GST is charged on the service value for packing, repacking and gift wrapping of goods done as an independent job. This covers work such as putting items into cartons, adding fillers, sealing, labelling and preparing parcels for courier pickup. After the September 2025 rate revision, parcel packing services continue to fall in the standard 18% slab where input tax credit is normally available to businesses.
The table below highlights the latest GST rate notified for SAC code 998541.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998541 | Parcel packing and gift wrapping | 18% with ITC | 18% with ITC | Gift wrapping and parcel packing services are in the same 99854 group with a similar 5% / nil concessional entry tied to sports events and blocked ITC. Normal commercial activity continues at 18%. |
When raising invoices for parcel packing services, the service provider should mention SAC 998541 and charge GST at the correct rate on the service portion. If packing is billed separately from the goods, GST is applied only on the packing charge. If it is part of a composite supply, such as a door to door logistics solution, the overall GST treatment of that bundle needs to be checked before deciding the final rate on the invoice.
Explore Other SAC Codes Under 9985
Parcel packing under SAC 998541 is part of the wider 9985 support services family, which also covers cleaning, security, staffing, travel reservations and other back end services that help business operations run smoothly. Each six digit code in this family captures a slightly different type of support activity.
Below are the major related six-digit SAC codes under parent 9985 that deal with different types of support services, from security and staffing to cleaning and travel reservations.
In practice, a business should pick the SAC that best fits the actual service being supplied. For example, pure parcel packing is correctly classified under SAC 998541, while manpower supply for warehouse operations or courier booking support would fall under other codes in the 9985 group. Using the right code helps keep GST returns consistent for both the service provider and the client.
Conclusion
Parcel packing services under SAC 998541 focus on preparing goods for safe and neat delivery, especially in e commerce and courier driven businesses. These services are generally taxed at 18% after the September 2025 GST changes, with input tax credit normally allowed where conditions are met. Classifying the service correctly and applying the right rate on invoices makes it easier to claim credits, explain working papers during GST reviews and avoid disputes later.
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.