SAC codes
SAC code for goods transport: 996511 and 996791
Road freight by a goods transport agency has two rate options, and in the usual case the business receiving the service pays the GST. Here is the code and the rules.
In short
Road freight sits under SAC 996511; a goods transport agency bills under 996791. A GTA charges 5% without credit, often paid by the recipient under reverse charge, or 18% with credit by option, as notified. SimpleERP prints the code on every freight line.
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 996511 at a glance
| Item | Value |
|---|---|
| 6-digit SAC, road freight | 996511: Road transport services of goods, by trucks, trailers and other vehicles (group 9965, goods transport services) |
| 6-digit SAC, goods transport agency | 996791: Goods transport agency services for road transport (group 9967, supporting transport services) |
| Usual GST rate for a GTA | 5% without input tax credit, or 18% with credit if the GTA opts for forward charge (18% replaced 12% from 22 September 2025), as notified; check |
| Reverse charge | Reverse charge when a goods transport agency carries goods for a factory, company, firm, society or registered person, unless the GTA has opted to pay under forward charge, as notified. |
| Exemption | Exempt for some goods, such as agricultural produce, milk, salt and food grains, and for small consignments under notified limits, as notified. |
| Who typically bills it | Goods transport agencies (GTAs) that issue consignment notes, and truck operators |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a goods transport invoice?
Road freight in general is SAC code 996511: road transport services of goods, by trucks, trailers and other vehicles, in group 9965, goods transport services. A goods transport agency (GTA), a transporter that issues a consignment note, has its own code: 996791, goods transport agency services for road transport, in group 9967, supporting transport services. Both sit in chapter 99, the chapter that holds every service code in the GST classification. A truck owner hiring out a vehicle without a consignment note is treated differently.
What GST rate applies to goods transport?
Goods transport by a GTA has two notified options: 5% without input tax credit, often paid by the recipient under reverse charge, or 18% with credit if the GTA opts for forward charge. The 18% option replaced the old 12% one from 22 September 2025, as notified; check. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- A GTA still billing 12% with credit is on the pre-September 2025 rate; the forward charge option is now 18%, as notified
- Hiring a vehicle to a GTA and transport by a transporter who issues no consignment note have their own entries, as notified
- Courier services are a different heading, 9968
A goods transport invoice line in SimpleERP
Kongu Roadways, a GTA that has not opted for forward charge, carries 40 steel racks from Coimbatore to a dealer in Bengaluru for Lakshmi Steel Furnitures and bills ₹18,000 freight under SAC 996791. The recipient pays the GST here, and SimpleERP has no reverse charge switch, so Kongu leaves GST off the line and writes "GST payable by the recipient under reverse charge" in the invoice notes. Lakshmi Steel then pays ₹900, 5% of the freight, itself.
- SAC 996791 sits on the line from the saved service, so nobody types it per invoice
- Place of supply picks CGST and SGST for a client in your state, or IGST for one in another
- The HSN/SAC summary groups every line by code, ready for the GSTR-1 HSN table
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?
As notified, when a GTA that has not opted for forward charge carries goods for a factory, a company, a partnership firm, a society, a registered person or a few other listed recipients, the recipient pays the GST under [reverse charge](/glossary/reverse-charge-mechanism). The GTA declares its option each year. Check the GST portal for the current entries.
- Transport of agricultural produce, milk, salt, food grains and some other goods is exempt, as notified; check
- Small consignments under the notified freight limits are exempt; check the current limits
- Transport for an unregistered individual who is not in business is exempt, as notified
FAQ
Questions, answered
Is SAC mandatory on my goods transport invoice?
Yes, on B2B invoices: four digits (9965) up to ₹5 crore turnover and six digits above it. Under reverse charge the consignment note or invoice still carries the code, so the recipient knows which entry to pay under.
Can I use 9965 instead of 996511?
Up to ₹5 crore turnover, 9965 meets the rule on B2B invoices. Above it, use 996511. Heading 9965 also covers rail, water and pipeline transport, so the full code shows it is road freight. A GTA uses 9967 or the full 996791 the same way.
Does reverse charge apply to goods transport?
Often, yes. When a GTA that has not opted for forward charge carries goods for a factory, company, firm, society or registered person, the recipient pays 5% itself under reverse charge, as notified; check. A GTA that opts for forward charge puts 5% without credit or 18% with credit on its own invoice.
What if my client is in another state?
For goods transport to a registered recipient, the place of supply is the recipient's location, not the destination. Freight to Bengaluru for a Coimbatore company is CGST and SGST. In SimpleERP the recipient's GSTIN sets the place of supply.
Related
Keep reading
Reverse charge mechanism (RCM)
When the buyer pays GST on a purchase directly to the government instead of the supplier.
Read moreGST invoice for services
A GST invoice format for services, with SAC codes and no stock columns, as a free Excel, Word and PDF download.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
Read more
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