Cartage HSN Code

The Cartage HSN Code: Understanding GST on Transportation

The term “cartage” refers to the transportation of goods, a fundamental aspect of commerce and logistics. However, unlike tangible goods, cartage is a service. Therefore, instead of an HSN code for the goods themselves, we look at the HSN code for the service of transporting those goods under the Goods and Services Tax (GST) regime. Based on the provided data, the transportation of goods by road falls under a specific Service Accounting Code (SAC), which functions similarly to an HSN code for services.

Identifying Service Accounting Code (SAC) for Cartage

The provided data focuses on the HSN codes for “Motor Vehicles For The Transport Of Goods” under Chapter 87. These codes (e.g., 87043290, 87049019) relate to the goods being used for transportation and attract a GST rate of 28%.

However, the service of “Cartage” or “Goods Transport Agency (GTA) services” is classified under Chapter 99 of the GST tariff, specifically under the Service Accounting Code (SAC) 9965. While this specific SAC isn’t detailed with its rate in the provided data, it’s the relevant category for the service of transporting goods. Typically, GTA services have varying GST rates depending on factors like whether input tax credit is availed.

Understanding Applicable GST Rate on Cartage Services

The provided data doesn’t directly state the GST rate for cartage services (SAC 9965). However, it does mention “Road Transport Services Of Goods Including Letters, Parcels, Live Animals, Household & Office Furniture, Containers Etc By Refrigerator Vehicles, Trucks, Trailers, Man Or Animal Drawn Vehicles Or Any Other Vehicles” ¹ under SAC 996511 with GST rates of 5% or 12% or 18% with Nil CESS, depending on specific conditions related to input tax credit and the transporter’s option.  

Therefore, while the vehicles used for cartage (Chapter 87) attract a 28% GST, the service of cartage itself (SAC 9965) has different, generally lower, GST rates.