SAC For RCM

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This discussion clarifies the correct SAC codes for Goods Transport Agency (GTA) services under Reverse Charge Mechanism (RCM). SAC 996511 generally applies to direct road transport of goods using the transporter's own vehicles and issuing a consignment note. SAC 996791 is typically for intermediary services like freight forwarding or brokerage. RCM applies to both when provided by a GTA issuing a consignment note, with SAC 996511 covering direct transport and SAC 996791 covering freight forwarding aspects.

Dipesh

Dipesh (Querist)
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28 April 2025 One of transporter has issuing bills with SAC 996511 & another one issues bills with SAC 996791, can you elaborate which one is coorect under RCM as both provides vehicles for transporting goods from one place to another place within India.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 April 2025 If the transporter is directly providing the transportation service by using their vehicles and issuing a consignment note, they qualify as a GTA, and the service falls under SAC 996511 (road transport services of goods).

If the transporter is acting as an intermediary (e.g., arranging transportation through third-party vehicles, providing freight forwarding, or brokerage services) and issues a consignment note, the service falls under SAC 996791 (goods transport agency services for freight forwarding, etc.).

SAC 996511 is more appropriate unless one of them is explicitly acting as a freight forwarder or broker without operating the vehicles themselves.

RCM applies only to GTA services under SAC 996511 or SAC 996791 when provided by a GTA issuing a consignment note. For SAC 996511, RCM is applicable for the actual transportation of goods by road. For SAC 996791, RCM may apply if the service involves freight forwarding or similar GTA services.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2025 Good luck.....

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