9965 Goods Transport Services
Heading 9965 of the SAC classification covers goods Transport Services. The schedule writes 10 entries against it, ranging from 5% to 18%, with 18% as the residual rate when no specific entry matches.
- Residual rate18%
- Service codes8
- Schedule entries10
Moving goods by road, rail, pipeline, water, air and space, including multimodal movements. The Goods Transport Agency entries here are the ones most businesses look for, and they are also where reverse charge most often applies.
Is this the right heading for your service?Confirm the code and the rate with an advisor, freeGST rate for SAC 9965
The rate schedule is written against the heading, so these entries govern every service code under 9965. The entry that applies is the one whose description actually matches the supply.
- Nil
- 1.5%
- 5% applies here
- 7.5%
- 12%
- 18% applies here
- 40%
| Entry | What it covers | GST rate | CGST + SGST | Input tax credit |
|---|---|---|---|---|
| (i) | Transport of goods by rail, other than in containers by a person other than Indian Railways. Credit of input tax charged on goods is not available. | 5% | 2.5% + 2.5% | Restricted credit |
| (ii) | Transport of goods in a vessel. Credit of input tax charged on goods other than ships, vessels including bulk carriers and tankers is not available. | 5% | 2.5% + 2.5% | Restricted credit |
| (iii) | Services supplied by a Goods Transport Agency in relation to transport of goods, including used household goods for personal use. A GTA may instead opt to pay 18% with full input tax credit under the forward charge, by filing the prescribed declaration for the financial year. | 5% | 2.5% + 2.5% | No input tax credit |
| (iii) | Services supplied by a Goods Transport Agency that has opted to pay tax under the forward charge with full input tax credit. The option is exercised for a financial year in the prescribed declaration and applies to all the GTA's supplies for that year. | 18% | 9% + 9% | Credit available |
| (iv) | Transport of goods in containers by rail, by a person other than Indian Railways. The supplier may instead charge 18% with full input tax credit. | 5% | 2.5% + 2.5% | No input tax credit |
| (v) | Transport of petroleum crude, motor spirit, high speed diesel, natural gas or aviation turbine fuel through a pipeline. The supplier may instead charge 18% with full input tax credit. | 5% | 2.5% + 2.5% | No input tax credit |
| (vi) | Multimodal transportation of goods within India, where no leg of the journey is by air. Credit is limited: input tax credit on input services of transportation of goods may be taken only up to 5% of the value. | 5% | 2.5% + 2.5% | Restricted credit |
| (vii) | Multimodal transportation of goods where one leg of the journey is by air. | 18% | 9% + 9% | Credit available |
| (viii) | Transport of goods by ropeway. Credit of input tax charged on goods is not available. | 5% | 2.5% + 2.5% | Restricted credit |
| (ix) Residual | Goods transport services other than the above. | 18% | 9% + 9% | Credit available |
More than one entry can apply here. The one that governs is the entry whose description actually matches the supply; where none does, the residual entry sets the rate.
Rates shown here are as published in GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) and are reproduced for reference. The GST Council revises rates through notifications, including the rate rationalisation effective 22.09.2025 that withdrew the 12% and 28% slabs for most services and introduced a 40% rate for a short list of them. Always verify the current rate and the conditions attached to it on the CBIC GST rates page or the CBIC tax information portal before invoicing or filing. Rates exclude any applicable cess. IncorpX provides assistance for GST registration and return filing if you need help.
Exempt supplies under 9965
Where an exemption applies it beats the rate schedule, so check these before reading a rate off the table above.
Some supplies under this heading carry no GST at all. An exemption removes the charge rather than setting a rate, so it overrides the schedule where it applies.
- Transport of goods by road, except the services of a Goods Transport Agency or a courier agency. Notification 12/2017-CT(R), entry 18
- Transport of goods by inland waterways. Notification 12/2017-CT(R), entry 18
- Services of a Goods Transport Agency transporting agricultural produce, milk, salt, food grain including flour, pulses and rice, organic manure, newspapers or magazines registered with the Registrar of Newspapers, relief material for disaster-affected areas, or defence or military equipment. Notification 12/2017-CT(R), entry 21
- Services of a Goods Transport Agency where the consideration charged for a single carriage does not exceed Rs. 1,500, or for all the goods of a single consignee does not exceed Rs. 750. Notification 12/2017-CT(R), entry 21
Source: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate). Exemptions carry conditions and definitions of their own, so read the notification entry before relying on one.
Reverse charge under 9965
On these supplies the recipient pays the GST. The supplier's invoice carries no tax, which is exactly why the mistake is so easy to make in both directions.
On these supplies the recipient pays the GST, not the supplier. The supplier issues an invoice without charging tax and notes that tax is payable under reverse charge; the recipient pays it in cash and claims credit separately if eligible.
Services supplied by a Goods Transport Agency in respect of transportation of goods by road, where the GTA has not opted to pay under the forward charge.
- Supplier
- A Goods Transport Agency
- Pays the tax
- A factory, society, co-operative society, registered person, body corporate, partnership firm or casual taxable person located in the taxable territory
Source: Services taxable under reverse charge, Notification 13/2017-Central Tax (Rate) as amended. Separately from the entries above, any service bought from a supplier outside India is taxable under reverse charge in the recipient's hands, whatever code it carries. Reverse charge entries are amended often, so confirm the current position before you raise or accept an invoice.
8 service codes under 9965
Grouped the way the classification groups them. Open the group that matches your kind of service, then pick the code whose official description covers what you supply.
9965 1Land transport services of Goods4
9965 2Water transport services of goods2
9965 3Air and space transport services of goods2
Where SAC 9965 is used
The same code, at different digit lengths, runs through your invoices, returns and registration.
Rule 46 requires the SAC code on the invoice for every service line, next to its description and value.
Get assistanceThe HSN/SAC summary table of GSTR-1 reports each code with its taxable value and tax: 4 digits up to Rs. 5 crore aggregate turnover, 6 digits above it.
Get assistanceThe services you supply are described with SAC codes when the registration application is prepared for the GST portal.
Get assistanceThe e-invoice schema validates the SAC field before the IRP returns an IRN, so a wrong code fails at generation rather than at assessment.
Get assistance- Classification: Scheme of Classification of Services, Annexure to Notification 11/2017-Central Tax (Rate), Central Board of Indirect Taxes and Customs (cbic-gst.gov.in).
- Rates: GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) (CBIC rate finder).
- Exemptions: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate).
- Reverse charge: Services taxable under reverse charge, Notification 13/2017-Central Tax (Rate) as amended.
- Current position: GST Council notifications published on the CBIC tax information portal.
This directory reproduces government classifications and rate entries for reference. The official gazette and CBIC notifications remain the authoritative sources. IncorpX provides assistance for registrations and filings that use these codes and does not issue the classification or the rates itself.
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SAC 9965 questions
What does SAC heading 9965 cover?
Heading 9965 of the SAC classification covers goods Transport Services. The schedule writes 10 entries against it, ranging from 5% to 18%, with 18% as the residual rate when no specific entry matches.
What is the GST rate for heading 9965?
It depends on which entry of the schedule matches the supply. Heading 9965 carries 10 entries at rates from 5% to 18%. Where no entry specifically matches, the residual entry applies and the rate is 18%. Several concessional entries are conditional on not taking input tax credit, so read the credit column before choosing.
Are any services under heading 9965 exempt from GST?
Yes. 4 exempt entries touch this heading, including transport of goods by road, except the services of a Goods Transport Agency or a courier agency. An exemption removes the charge rather than setting a rate, so where it applies it overrides the rate schedule.
Does reverse charge apply to services under heading 9965?
Yes, for one notified category. Where reverse charge applies the supplier issues an invoice without charging GST and the recipient pays the tax directly and claims credit separately if eligible. The exact categories are listed on this page.
How many digits of SAC 9965 do I report?
Report all 4 digits of 9965 on invoices and in the GSTR-1 summary if your aggregate turnover is up to Rs. 5 crore, and the full 6-digit code above that. Pick the 6-digit code from the list on this page.
Nebin Binoy 
