Freight HSN Code/ SAC: Inward, Outward and Forwarding Charges 2024

The HSN code for freight charges is 9965 and GST rate is 18%. However, this is general categorization, and the SAC could is further subclassified based on the type of freight by adding two more digits as suffix.

Note:

• 1. Freight is a transportation service involving the movement of goods from one place to another. While the precise classification is under the Services Accounting Code (SAC), colloquially, people often refer to it as having an HSN Code.
• 2. The HSN Code would be freight charges would be the same whether it is Freight inward, Freight forwarding or freight outward as they represent the same nature of services.

Freight and Good Transportation HSN Code/ SAC

Here is the detailed table of SAC/ HSN Code for Frieght and good transportation services of different nature.

Type of Transportation Considered as Freight (as per GST)

Freight refers to goods, cargo, or merchandise transported from one place to another, typically in large quantities. It is commonly associated with the transportation of goods by various modes, such as ships, airplanes, trucks, trains, or other means of transport.

Land Transportation:

• Goods Transport Services- All type of transportation except consumables
• Road Transport Services
• Railway Transport Services
• Other Land Transport Services for Goods (N.E.C. – Not Elsewhere Classified)

Water Transportation

• Transporting goods across coastal and transoceanic waters is facilitated by various vessels, including bulk cargo vessels, refrigerator vessels, container ships, and tankers.
• Goods are transported on inland waterways using vessels such as tankers, refrigerator vessels, and other watercraft.

Pipeline Transportation: Transport Services for Natural Gas, Petroleum, Sewerage, and Water via pipelines.

Air Transportation: Air Transport Services for Parcels, Letters, and other Goods.

Space Transportation: Space Transport Services for Freight.

Freight Handling: Freight Inward, Freight Outward, Freight Forward, Shipping, Cargo Charges.

What is not considered as freight under GST?

GST is not levied on freight charges in India for the following categories:

• agricultural produce transportation
• milk, salt, and food grains, including rice, flour, and pulses Transportation of Transportation of organic manure
• Transportation of newspapers or magazines registered with the Registrar of Newspapers
• Transportation of relief materials for victims of natural or man-made disasters, calamities, accidents, or mishaps
• Transportation of defence or military equipment
• Transportation of any goods, where the gross amount charged for transportation in a single carriage is less than Rs. 1,500.

What Does Freight Charges Include?

Freight charges typically include the costs associated with transporting goods from one location to another.

• 1. Transportation fees
• 2. Handling charges
• 3. Insurance during transit

Freight Charges Exclude:

• 1. Customs duties
• 2. Taxes
• 3. Fees at the destination

Goods Transportation vs Freight

“Freight” and “Goods Transportation Services” essentially refer to the same concept:

• Freight: This term generally denotes the commercial transportation of goods, encompassing the movement of cargo or merchandise from one place to another.
• Goods Transportation Services: This phrase specifically emphasizes the services involved in transporting goods, highlighting the organized and systematic movement of various types of commodities.

FAQs About Freight Charges

What is the HSN code for freight GST?

The HSN code for freight GST is 9965.

What is Freight HSN code 996511 8 digits?

The 8-digit HSN code for Freight (Road Transport Services Of Goods Including Letters, Parcels, Live Animals, Household & Office Furniture, Containers, etc.) is 99651111.

What is the HSN code 996532?

The HSN code 996532 corresponds to Space Transport Services Of Freight.

What is the HSN code 996719?

The HSN code 996719 is a general classification for various Support Services To Land Transport.

What is the HSN code 996791?

The HSN code 996791 pertains to Services Provided By Indian Railways.

What is the HSN code 996521?

The HSN code 996521 is associated with Coastal And Transoceanic (Overseas) Water Transport Services Of Goods.