Parcel Packing 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.

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998541 SAC Code GST Rate

Review old and new GST rates for Parcel Packing under 998541 SAC Code.

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.

SAC Code

998541

Description

Parcel packing and gift wrapping

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

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Explore More SAC Codes Under 9985

Practical Classification Guidance

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 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.