In India, the GST Council sets the rates for services and items. Services are taxed at 0%, 5%, 12%, 18%, or 28%. The GST Council has used the SAC code to determine the GST rate for services. The Service Tax Department created the SAC code, or Service Accounting Code, as a service classification system for levying service tax. The GST rate for customs agents, freight handling, storage, and other transportation support services is discussed in this article.

Support Services For Transportation

The SAC code for supporting services in transportation includes cargo handling services, storage and warehousing services, supporting services for railway transport, supporting services for road transport, supporting services for water transport (coastal, transoceanic, and inland waterways), supporting services for air or space transport, and other supporting transport services. All transportation-related support services are classified as SAC code 9967.

Cargo Handling Services And Customs Agents

GST Rate For Customs Agents, Cargo Handling And Warehousing

The SAC codes for various sorts of customs agents and cargo handling services are as follows:

  • Container handling services (SAC Code 996711).
  • Customs house agent services (SAC Code 996712).
  • Clearing and forwarding services (SAC Code 996713).
  • Other cargo and luggage handling services (SAC Code 996719).

Services For Storage And Warehousing

The SAC codes for various sorts of storage and warehousing services are as follows:

  • Refrigerated storage services (SAC Code 996721).
  • Bulk liquid or gas storage services (SAC Code 996722).
  • Other storage and warehousing services (SAC Code 996729).

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Railway Transportation Support Services

The SAC codes for various varieties of supporting services for railway transportation are as follows:

  • Railway pushing or towing services (SAC Code 996731).
  • SAC Code 996739 — Other railway transportation support services.

Road Transport Supporting Services

The SAC codes for various forms of road transport support services are as follows:

  • Bus station services (SAC Code 996741).
  • Parking lot services (SAC Code 996743).
  • Towing services for commercial and personal automobiles are classified under SAC Code 996744.
  • Other road transportation support services (SAC Code 996749).

Water Transportation Support Services

The SAC codes for various sorts of water transport supporting services are as follows:

  • SAC Code 996751 — Port and canal operating services (excluding cargo handling), including port, dock, lighthouse, and lightship operations.
  • Pilotage and berthing services are classified as SAC Code 996752.
  • Vessel salvage and refloating services (SAC C0de 996753).
  • Other supporting services for water transportation (SAC Code 996759).

Air or Space Transportation Support Services

GST Rate For Customs Agents, Cargo Handling And Warehousing

The SAC codes for various sorts of supporting services for air or space transportation are as follows:

  • Airport operation services (SAC Code 996761) (excl. cargo handling).
  • Air traffic control services are classified under SAC Code 996762.
  • SAC Code 996763 — Other air transportation support service.
  • Supporting services for space transportation (SAC Code 996764).

GST Rate for Supporting Services in Transportation Services provided by a goods transport agency in connection with the transportation of the following products are GST-free:

  • Produce from agriculture
  • Goods, where the aggregate sum charged for the transportation of goods on a single carriage is not more than one thousand five hundred rupees;
  • Products for which the total transportation charge for all such goods for a single consignee does not exceed rupees 750;
  • Foodgrains such as wheat, lentils, and rice, as well as milk and salt;
  • Manure made from organic materials;
  • Registrar of Newspapers-registered newspaper or publications;
  • Victims of natural or man-made disasters, calamities, accidents, or mishaps will receive relief goods; or
  • Military or defense equipment

The services of a goods transport agency (GTA) in regard to the transportation of commodities and the transportation of used household goods for personal use are subject to a 5% GST rate with no input tax credit.

For services for which a specific rate has not been established by the GST Council, the default GST rate will be 18 percent. As a result, most supporting services in transportation will be subject to an 18 percent GST charge.