As we all know Courier services are considered as the most essential requirement for businesses to enhance their productivity. Courier services refer to any person who involved in door-to-door transportation, either directly or indirectly, to take or accompany such documents, goods etc, or to prevent the goods from any misplacement and damage of goods. In this article, we will discuss GST on courier services and also the significance of GST Registration.
Before knowing about the procedure, now you require to ensure some facts about the GST (Goods and Services tax).
Know About GST
GST is an absolute Indirect Tax that is to levy on sale, manufacture, and consumption of goods and services over the nation. It is a separate tax suitable for the supply of goods from the manufacturer to the user. GST is significant only on value addition at each stage. Although, GST registration is compulsory for registering business of courier agencies.
Rate of GST on Courier Agency
GST Rate levied on courier services and courier agencies.
Courier services categorised under SAC Code 996812 will be taxable at 18% GST.
Example: – XYZ Ltd is a Courier agency service provider who renders daily courier services to AMT Ltd from Delhi to Mumbai, on such matter X Ltd shall charge & collect GST at Rate of 18 %. SAC Code 996812 will be payable at 18% GST.
SAC Code applicable for Courier Services
The following SAC (Service Accounting Code) has established for the different advertising services in India.
- SAC Code 996811 – Postal services, involving post office counter services, mailbox rental services.
- SAC Code 996812 – Courier services
- SAC Code 996813 – Local delivery services
- SAC Code 996819 – Other Delivery Services
So these are the essential points regarding GST on Courier Services.
In case, you need any kind of guidance related to the GST registration, GST return filing procedure, or any other GST compliance, please feel free to contact our business advisors at 8881-069-069.
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