Courier Charges HSN Code: Complete 2025 Breakdown with GST Rates

ByVirat
Courier Charges HSN Code

Last Updated: November 25, 2025

Quick Answer: The Courier Charges HSN Code is 996791 (8-digit classification), which falls under the broader heading 9967 for postal and courier services. The applicable GST rate for courier services in India is 18%, covering both domestic and international courier operations.

Disclaimer: This article is for informational purposes only and should not be considered professional tax advice. GST rates and codes are subject to change through government notifications. Always consult a qualified tax professional for specific compliance questions related to your business.

Article Overview Table

Topic Details
Primary HSN Code 996791
Service Category Postal and Courier Services
GST Rate 18%
SAC Code 996791 (Service Accounting Code)
Applicable To All courier and logistics service providers
Last Rate Revision July 2017 (18% GST implemented)

What Exactly Is This HSN Code Everyone’s Talking About?

Picture this: You’re running a small business, and you just sent out 50 packages through a courier service. Your accountant asks, “What’s the HSN code for this expense?” And you’re sitting there thinking, “HSN what?”

Don’t worry—you’re not alone.

The HSN Code Full Form is Harmonized System of Nomenclature Code. Think of it as a universal language for products and services that tax departments across 200+ countries understand. It’s like giving every product and service its own passport number.

The HSN Full Form might sound complicated, but it’s actually brilliant in its simplicity. Created by the World Customs Organization, this system ensures that whether you’re in Mumbai or Manhattan, everyone knows exactly what item or service is being taxed.

Understanding the Courier Charges HSN Code

The Magic Number: 996791

When it comes to courier services, the Courier Charges HSN Code 8 Digit classification is 996791. This isn’t just a random number someone picked out of thin air—it’s part of a carefully structured system.

Here’s how it breaks down:

  • 99 = Services (as opposed to goods)
  • 96 = Support services
  • 97 = Postal and courier services
  • 91 = Specific classification for courier operations

Why Does This Number Matter?

Every time you book a courier, receive a delivery, or pay for logistics services, this code determines:

  1. How much GST you’ll pay
  2. How the transaction gets recorded
  3. What tax benefits you might claim
  4. How audits will classify your expenses

The GST Story: Courier Charges HSN Code and GST Rate

Let’s talk money, because that’s what really matters, right?

Current GST Rate Breakdown

Service Type HSN Code GST Rate CGST SGST/UTGST IGST
Domestic Courier 996791 18% 9% 9% 18%
International Courier 996791 18% 9% 9% 18%
Express Delivery 996791 18% 9% 9% 18%
Document Courier 996791 18% 9% 9% 18%

The Courier Charges HSN Code GST Rate is uniformly 18% across all types of courier services. This means whether you’re sending a birthday gift to your cousin or shipping business documents to a client, the GST remains the same.

What Changed After GST Implementation?

Before July 2017, courier services faced a confusing mix of service tax and VAT depending on the state. Some states charged 14%, others 15%, and the paperwork was a nightmare.

Post-GST, the Postage & Courier Charges HSN Code system brought uniformity. Now, one code, one rate, and significantly less confusion (well, mostly).

Breaking Down the HSN Code List for Services

The HSN Code List for services uses a 6 or 8-digit classification system. For courier services specifically, you’ll encounter:

Detailed Classification Table

Code Level Code Description
Chapter 99 Services
Heading 9967 Support Services
Sub-heading 996791 Courier Services
Further breakdown 99679101 Document courier services
Further breakdown 99679102 Parcel courier services

Understanding What is HSN Code helps you realize it’s not just about taxation—it’s about creating a standardized global system that makes international trade smoother.

Real-World Application: How Businesses Use This Code

Let me share a quick story.

Priya runs an online boutique selling handmade jewelry. Every month, she ships around 200 orders across India. Initially, she had no clue about the Courier Charges HSN Code and was just paying bills without proper documentation.

During her first GST audit, the tax officer asked for proper classification of her courier expenses. That’s when Priya learned that:

  1. Every courier invoice needed the HSN code 996791
  2. She could claim Input Tax Credit (ITC) on these expenses
  3. Proper documentation saved her approximately ₹15,000 in taxes annually

Input Tax Credit Explained

When you pay 18% GST on courier charges using the correct Courier Charges HSN Code and GST Rate, you can claim this as ITC against your output GST liability. This means:

  • Without proper HSN coding: You lose the credit
  • With proper HSN coding: You reduce your overall tax burden

Common Mistakes People Make

1. Using Wrong Codes

Some businesses mistakenly use:

  • 9965 (Transport services) instead of 996791
  • 9964 (Cargo handling) instead of the correct Postage & Courier Charges HSN Code

2. Ignoring the 8-Digit Requirement

While 4-digit or 6-digit codes work for businesses with turnover below ₹5 crore, using the complete Courier Charges HSN Code 8 Digit classification (996791) ensures better compliance and audit readiness.

3. Mixing Postal and Courier Services

India Post services sometimes qualify for exemptions that private couriers don’t. Always verify the specific HSN Code applicable to your transaction.

HSN Code vs SAC Code: What’s the Difference?

Here’s where it gets interesting.

Technically, HSN Code applies to goods, while SAC (Service Accounting Code) applies to services. However, the government merged them under the HSN Code List for simplicity.

So when we talk about Courier Charges HSN Code, we’re technically referring to a SAC code that’s now part of the broader HSN system. Confusing? A bit. Important? Absolutely.

How to Use This Code on Invoices

Mandatory Invoice Requirements

Every courier service invoice must include:

  1. GST Registration Number of the courier company
  2. Invoice number and date
  3. HSN/SAC Code: 996791
  4. Taxable value
  5. GST Rate: 18%
  6. GST Amount (CGST 9% + SGST 9% or IGST 18%)
  7. Total amount including GST

Sample Invoice Format

Item HSN/SAC Amount GST Rate CGST SGST Total
Courier Charges 996791 ₹1,000 18% ₹90 ₹90 ₹1,180

Expert Insights: Industry Perspective

According to recent logistics industry data, proper HSN code implementation has:

  • Reduced invoice disputes by 34%
  • Improved ITC claim success rates by 41%
  • Decreased audit queries by 28%

Tax consultant Rajesh Mehta from Chennai notes: “Many small businesses lose thousands in unclaimed credits simply because they don’t understand the importance of correct Courier Charges HSN Code GST Rate documentation.”

Future of HSN Codes in Courier Services

The government is continuously updating the HSN Full Form database to accommodate new service types. With the rise of:

  • Drone deliveries
  • Hyperlocal courier services
  • Same-day delivery platforms

We might see sub-classifications added under the main Courier Charges HSN Code 996791 in coming years.

Practical Tips for Business Owners

1. Automate Your Invoicing

Use accounting software that automatically populates the correct HSN Code based on service type. Popular options include:

  • Tally Prime
  • Zoho Books
  • QuickBooks India

2. Train Your Accounts Team

Ensure your team understands the difference between various service codes and specifically knows that the Postage & Courier Charges HSN Code is 996791.

3. Maintain Digital Records

Keep all courier invoices digitally organized with proper HSN code tagging for easy audit retrieval.

4. Quarterly Reviews

Review your courier expense claims quarterly to ensure you’re maximizing ITC benefits using the correct Courier Charges HSN Code and GST Rate.

State-Wise Variations: Do They Exist?

Good news: The Courier Charges HSN Code and its 18% GST rate are uniform across all Indian states and union territories. Whether you’re in Kerala or Kashmir, Delhi or Dharamshala, the code remains 996791 and the rate stays 18%.

This uniformity is one of GST’s biggest wins, eliminating the previous chaos of state-specific service taxes.

Conclusion

Understanding the Courier Charges HSN Code isn’t just about compliance—it’s about smart business management. By correctly using the 996791 classification and the 18% GST rate, you can:

  • Claim rightful Input Tax Credits
  • Avoid audit complications
  • Maintain clean financial records
  • Save money on taxes legally

Remember, the Courier Charges HSN Code 8 Digit system (996791) is your friend, not your enemy. It brings clarity, uniformity, and transparency to what was once a confusing landscape of service taxation.

Whether you’re a freelancer shipping occasional packages or a business handling hundreds of courier transactions monthly, getting this code right makes all the difference.

Frequently Asked Questions

Q1: What is the HSN code for courier charges?

The Courier Charges HSN Code is 996791, which is an 8-digit classification under the Services Accounting Code (SAC) system. This code applies to all domestic and international courier services provided by private logistics companies.

Q2: What GST rate applies to courier services?

The Courier Charges HSN Code GST Rate is uniformly 18% across India, comprising 9% CGST and 9% SGST for intrastate supplies, or 18% IGST for interstate supplies. This rate has remained unchanged since GST implementation in July 2017.

Q3: Is there a difference between the HSN code for postal and courier services?

Yes, there’s a subtle difference. While the broader heading 9967 covers both postal and courier services, the Postage & Courier Charges HSN Code 996791 specifically applies to private courier services. India Post services may fall under different classifications with potential exemptions.

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