Goods and Service Tax on services follows a structured 4-tier rate system, with tax rates set at 5%, 12%, 18%, and 28%. Each tier offers distinct advantages and disadvantages for consumers, impacting the overall cost of services.
While most GST on services fall under these GST slabs, essential sectors such as healthcare and education are exempt from GST, ensuring that these critical areas remain affordable for everyone.
| SAC Code | Description of Services | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|
| 9968 | Postal And Courier Services | 18 | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 01/07/2017 | 18% |
| 996811 | Postal Services Including Post Office Counter Services, Mail Box Rental Services. | 18 | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 01/07/2017 | 18% |
| 996812 | Courier Services | 18 | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 01/07/2017 | 18% |
| 996813 | Local Delivery Services | 18 | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 01/07/2017 | 18% |
| 996819 | Other Delivery Services N.E.C | 18 | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 01/07/2017 | 18% |
SAC Codes for Courier Services
The SAC Code for postal and courier services are as follows: SAC Code 996811 – Postal services, including post office counter services, mailbox rental services. SAC Code 996812 – Courier services SAC Code 996813 – Local delivery services SAC Code 996819 – Other Delivery Services
GST Rate for Courier Services
Courier services classified under SAC Code 996812 will be taxable at 18% GST. In addition to the above types of courier services, some services provided by a Courier business can also fall under Goods Transport. We look at the SAC Code and GST rate for Goods Transport below.
SAC Codes for Packaging Service
The SAC code for packaging services are as follows: SAC Code 998540 – Packaging services of goods for others SAC Code 998541 – Parcel packing and gift wrapping SAC Code 998542 – Coin and currency packing services SAC Code 998549 – Other packaging services n.e.c 18% of GST is applicable to packaging services.
Goods Transport Services
Goods Transport Services are divided into the following headings under the SAC:
Goods Transport by Land
SAC Code 996511 – Road transport services of Goods including letters, parcels, live animals, household & office furniture, containers etc. by refrigerator vehicles, trucks, trailers, man or animal-drawn vehicles or any other vehicles. SAC Code 996512 – Railway transport services of Goods including letters, parcels, live animals, household & office furniture, intermodal containers, bulk cargo etc SAC Code 996513 – Transport services of petroleum & natural gas, water, sewerage and other goods via pipeline SAC Code 996519 – Other land transport services for goods
Goods Transport by Water Transport
SAC Code 996521 – Coastal and transoceanic (overseas) water transport services of goods by refrigerator vessels, tankers, bulk cargo vessels, container ships etc SAC Code 996522 – Inland water transport services of goods by refrigerator vessels, tankers and other vessels.
Goods Transport by Air Transport
SAC Code 996531 – Air transport services of letters & parcels and other goods SAC Code 996532 – Space transport services of freight
