Freight HSN Code (SAC 9965) and GST Rate
Freight charges for transport of goods by road (GTA), rail, sea or air.
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- SAC code
- 9965
- GST rate
- 5% or 18%
- Chapter
- 99: Services (SAC)
- Before 22 Sep 2025
- 5% or 12%
What is the SAC code for freight?
Freight falls under SAC 9965.
Goods transport services are SAC group 9965, with road freight at 996511, and the GTA's own service is often shown as 996791. The rate depends on who is supplying: a goods transport agency that issues a consignment note charges 5% without credit or, by choice, 18% with credit, while a truck owner who does not issue a consignment note is exempt. When a factory, company, firm or other registered business pays freight to a GTA charging 5%, the business itself usually pays the tax under reverse charge.
| Code | Description |
|---|---|
| 996511 | Road transport of goods (trucks, trailers, refrigerated vehicles) |
| 996521 | Coastal and transoceanic transport of goods by water |
| 996531 | Air transport of goods |
| 996791 | Goods transport agency (GTA) services for road transport |
GST rate on freight
The GST rate on freight is 5% or 18%. Before 22 September 2025 it was 5% or 12%. Road freight by a goods transport agency: 5% without input tax credit (paid by the recipient under reverse charge for most business recipients, or by the GTA if it opts to pay), or 18% with input tax credit if the GTA chooses forward charge (12% before 22 September 2025). Transport of goods by road by someone who is not a GTA (no consignment note) is exempt.
| GST rate | Within a state | Between states |
|---|---|---|
| 5% | CGST 2.5% + SGST 2.5% | IGST 5% |
| 18% | CGST 9% + SGST 9% | IGST 18% |
Compare other goods on the GST rates list.
Which SAC digits to write on your invoice
The number of digits depends on your aggregate turnover in the previous financial year.
| Turnover last year | Digits | Write |
|---|---|---|
| Up to Rs 5 crore | 4 on B2B invoices, optional on B2C | 9965 |
| Above Rs 5 crore | 6 on every invoice | 996511, 996521, 996531 |
Sample GST invoice line for freight
Here is how a line for freight looks on a tax invoice within one state: 1 × trip at Rs 25,000.00 each, taxed at 5%. The figures are an example, not a market price.
| Item | SAC | Qty | Rate (Rs) | Taxable (Rs) | CGST (Rs) | SGST (Rs) | Total (Rs) |
|---|---|---|---|---|---|---|---|
| Freight | 9965 | 1 × trip | 25,000.00 | 25,000.00 | 625.00 | 625.00 | 26,250.00 |
Sold to a buyer in another state, the same line carries IGST of Rs 1,250.00 instead of CGST and SGST. Make the full invoice with the GST invoice format: it fills in the tax split, round off and amount in words.
Chapter 99 at a glance
Chapter 99 (Services (SAC)) covers: Services under GST, coded with a Services Accounting Code (SAC) that starts with 99.
Other pages in chapter 99
- Works ContractSAC 9954 · 18%
- RestaurantSAC 9963 · 5%
- Hotel AccommodationSAC 9963 · 5% or 18%
- Taxi and CabSAC 9964 · 5% or 18%
- Air TicketSAC 9964 · 5% or 18%
- InsuranceSAC 9971 · Exempt or 18%
- RentSAC 9972 · Exempt or 18%
- Legal ServicesSAC 9982 · 18%
- ConsultancySAC 9983 · 18%
- SoftwareSAC 9983 · 18%
- AdvertisingSAC 9983 · 18%
- Manpower SupplySAC 9985 · 18%
Related HSN codes
Products often bought, sold or invoiced together with freight:
Questions fréquentes
What is the HSN or SAC code for freight?
Freight falls under SAC 9965: freight charges for transport of goods by road (GTA), rail, sea or air. Common 6 digit codes are 996511 for road transport of goods (trucks, trailers, refrigerated vehicles) and 996521 for coastal and transoceanic transport of goods by water.
What is the GST rate on freight?
Road freight by a goods transport agency: 5% without input tax credit (paid by the recipient under reverse charge for most business recipients, or by the GTA if it opts to pay), or 18% with input tax credit if the GTA chooses forward charge (12% before 22 September 2025). Transport of goods by road by someone who is not a GTA (no consignment note) is exempt.
How many digits of the freight SAC code go on a GST invoice?
If your aggregate turnover in the previous financial year was up to Rs 5 crore, write the 4 digit code 9965 on B2B invoices (optional on B2C invoices). Above Rs 5 crore, write 6 digits, such as 996511, on every invoice.
Is GST on freight paid under reverse charge?
Often, yes. When a GTA charges 5% and the recipient is a factory, company, partnership firm, society or registered person, the recipient pays the GST under reverse charge, unless the GTA has opted to pay it under forward charge.
Rates checked on 13 October 2026 against the GST rate notifications in force (GST 2.0 from 22 September 2025). Descriptions are in our own words and are a guide, not a ruling: for a disputed or high value item, check the notification or ask your tax adviser.