SAC codes
SAC code for freight forwarding: 996713
A forwarder's own charges for arranging a shipment are a supporting transport service; the freight it passes on can be a different line with different rules.
In short
Clearing and forwarding services use SAC 996713, usually at 18% under forward charge, while freight on exports and imports has its own entries. SimpleERP keeps each charge on its own line with its own code.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
SAC 996713 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 996713 (996712 customs clearance, 996711 container handling) |
| 4-digit group | 9967: supporting services in transport |
| Chapter 99 heading | Clearing and forwarding services |
| Usual GST rate | 18% on the forwarder's own charges (as notified; check the GST portal) |
| Reverse charge | Forward charge for most suppliers on forwarding charges; road freight by a GTA can fall under reverse charge |
| Exemption | Freight on some export and import movements has its own exemption or zero-rating entries |
| Who typically bills it | Freight forwarders, clearing and forwarding agents, NVOCCs and consolidators |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a freight forwarding invoice?
Use 996713, clearing and forwarding services. It sits in group 9967, supporting services in transport, under chapter 99 (services). Booking space, documentation, consolidation and handling charges billed by a forwarder fit here. Customs house agent services are 996712 and container handling is 996711.
Lakshmi Steel Furnitures ships a container of steel lockers from Coimbatore to a buyer in Dubai through Coastline Logistics in Chennai, Tamil Nadu. Coastline bills its forwarding and documentation charges under 996713 and shows the ocean freight on a separate line.
What GST rate applies to freight forwarding?
A forwarder's own charges under 996713 are usually taxed at 18%. ₹25,000 of documentation and handling for a client in your state carries ₹2,250 CGST and ₹2,250 SGST. Freight is where it changes: road freight by a goods transport agency has its own options, and international freight on exports and imports has its own entries. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Forwarding, documentation and handling: 996713
- Customs clearance as a CHA: 996712
- Road freight by a GTA: see transport of goods
- Ocean and air freight: depends on the movement and who is the principal
A freight forwarding invoice line in SimpleERP
Save Forwarding charges, Documentation and Ocean freight as separate services, each with its SAC code and rate. Your invoice then shows each charge with the tax that applies to it, including lines with no tax.
- SAC 996713 prints on the forwarding line
- Place of supply picks CGST plus SGST or IGST from the customer's state
- The HSN/SAC summary for GSTR-1 separates forwarding from freight
- Charges paid as a pure agent go on a reimbursement line at cost
Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.
When is reverse charge or an exemption involved?
Forwarding charges are under forward charge. Reverse charge comes up on freight: road transport by a goods transport agency can be paid by the recipient under reverse charge, depending on the option the GTA chose. Ocean freight on imports once sat under reverse charge for the importer, and the entry has since changed, so check the current position. SimpleERP has no reverse charge flag on bills; your accountant posts RCM with a journal entry.
- Forward charge on the forwarder's own fees
- GTA road freight: reverse charge or forward charge by the GTA's option
- Import ocean freight: check the current entry
- Read more on reverse charge
FAQ
Questions, answered
I bill forwarding charges and ocean freight on one invoice. Does it all carry 18%?
Not necessarily. Your forwarding and documentation charges are usually 18% under 996713. Freight depends on whether you act as the principal carrier or an agent, the route and the current exemption entries. Put freight on its own line and confirm its treatment with your CA.
Do I charge GST on customs duty I pay for the client?
Duty paid in the client's name and recovered at actual cost, shown separately, is usually a pure agent reimbursement and stays out of your taxable value. Keep the duty receipt in the client's name and bill it on a line with no tax.
Is freight forwarding the same as GTA?
No. A goods transport agency issues a consignment note and moves goods by road, with its own rate options and reverse charge rules. A forwarder arranges the movement and bills its own fees under 996713. Some firms do both, so save each as its own service.
My client is an exporter. Is my forwarding fee zero-rated?
Usually not: a service to an Indian exporter for an export shipment is a domestic supply, so GST applies to your fee. Some freight for exports has separate entries. Check with your CA before you bill without tax.
Related
Keep reading
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Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
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