SAC for Transportation services by GTA 996511 or 996791?

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Clarifies SAC for GTA services under forward charge @12% with ITC. Correct code is SAC 996511 (transport of goods by road). Supported by GST notifications and AAR rulings; SAC 996791 not applicable.

Venkatesh

Venkatesh (Querist)
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18 May 2025 If a Goods Transport Agency has opted to tax under Forward charge mechanism @ 12% with ITC, which SAC should be used of Transportation of goods by road? SAC 996511 or SAC 996791?
Please mention applicable notification/circular/clarification.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 May 2025 For a Goods Transport Agency (GTA) that has opted for Forward Charge Mechanism at 12% with ITC, the correct SAC (Service Accounting Code) for transportation of goods by road is SAC 996511.
SAC 996511 specifically covers services provided by a GTA for transportation of goods by road, whereas SAC 996791 is more broadly related to other supporting transport services. Fir details refer::
https://cleartax.in/s/freight-charges-hsn-code-and-gst-rate

Venkatesh

Venkatesh (Querist)
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18 May 2025 Thank you for your reply.
If you could provide any CBIC notification/Clarification in this regard it would be of great use to me.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 May 2025 The GST rate of 12% (with ITC) for GTA services under the forward charge is notified under Notification No. 20/2017-Central Tax (Rate) dated 22nd August 2017, which amended Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017. This notification allows a GTA to opt for 12% GST with full ITC on all services supplied by it.

The classification for GTA services under SAC 996511 is confirmed by the Maharashtra AAR (Advance Ruling), which held that the supply of services in relation to transportation of goods by road by a GTA (issuing a consignment note) falls under Heading 9965, Group 99651, and specifically under SAC 996511.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 May 2025 Refer: https://www.avalara.com/blog/en/apac/2020/07/12-percent-gst-on-agreement-of-supply-of-services-on-transportation-of-goods-by-road.html

Venkatesh

Venkatesh (Querist)
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19 May 2025 Thank You for the reference about Maharashtra AAR.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 May 2025 You are welcome.

Dhirajlal Rambhia

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

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