Courier and express-delivery services are taxed at a flat 18% GST under SAC 996812, charged by the courier company under forward charge. A GST-registered recipient can claim full Input Tax Credit on this 18%. Courier has no RCM or 5% option — that dual-rate structure belongs to a Goods Transport Agency (GTA), which is a different service. Courier of an export consignment can be zero-rated where the export conditions are met. GST 2.0 (effective 22 September 2025) did not change courier rates.
GST on Courier Services — Decision Table
The GST rate and SAC code for every common courier and express-delivery scenario, with ITC eligibility for the recipient.
| Type of Service | SAC | GST Rate | ITC to Recipient |
|---|---|---|---|
| Domestic courier (air / road / surface) | 996812 | 18% | Yes |
| Express / parcel & e-commerce delivery | 996812 | 18% | Yes |
| Same-day / intra-city courier | 996812 | 18% | Yes |
| Document / letter courier (private operator) | 996812 | 18% | Yes |
| International courier — inbound / non-export | 996812 | 18% | Yes |
| Courier of export consignment (conditions met) | 996812 | Zero-rated | ITC refund |
| Goods Transport Agency (GTA) by road | 9965 | 5% / 12% | Separate service — not courier |
Courier is 18% forward charge under SAC 996812 in all cases; the 5%/12% line is shown only to contrast GTA. Rates reflect the position after GST 2.0 (22 September 2025). Confirm on the official GST portal before invoicing.
Courier Services Are Taxed at 18% — SAC 996812
A courier agency provides a door-to-door supply of documents, parcels and packages — it collects individual consignments from many senders, consolidates them and delivers them. This is classified under SAC 996812 (Courier services) and taxed at a uniform 18% (9% CGST + 9% SGST intra-state, or 18% IGST inter-state).
- The courier company charges 18% under forward charge and pays it to the government — there is no reverse charge on courier.
- The rate is the same for air, road and surface modes and does not vary with distance or shipment value.
- Private operators (BlueDart, DTDC, Delhivery, FedEx India, DHL and similar) all fall under this 18% courier rate.
- India Post Speed Post / Express Parcel Post is also taxable at 18%; only India Post's basic postal services (ordinary letter, postcard) are exempt.
Unlike restaurants (5%/18%) or rent (18%/RCM/exempt), courier has a single answer: 18% forward charge under SAC 996812, with ITC flowing to a registered recipient. The only real nuance is not confusing courier with GTA and handling export consignments correctly.
Running a courier or e-commerce logistics business? Get your GST registration & invoicing set up right.
Get Courier GST Help →Courier vs Goods Transport Agency (GTA)
The most common mistake is treating a courier like a GTA and applying the 5% RCM rate. They are two different services with different rates, documents and charge mechanisms.
Courier service — forward charge
- Door-to-door parcels, documents & packages
- Airway bill / courier receipt issued
- Consolidates consignments from many senders
- Courier company pays GST (forward charge)
- Recipient claims full ITC on 18%
GTA (road freight) — often RCM
- Full-truck / part-truck goods movement
- Consignment note (LR / bilty) issued
- 5% (no ITC to GTA) or 12% (with ITC)
- Often reverse charge — recipient pays 5%
- A distinct service — see the freight guide
In short: if you get an airway bill / courier receipt and the bill shows 18%, it is a courier service under forward charge. If you get a consignment note (LR/bilty) for a truckload and the rate is 5%/12%, it is a GTA / goods transport supply governed by reverse charge rules.
Courier is never taxed at 5% and never falls under RCM. Applying GTA's 5% reverse-charge treatment to a courier invoice is a classification error — the courier company has already charged 18% under forward charge, and the recipient simply claims it as ITC.
Can You Claim ITC on Courier Charges?
Yes. A GST-registered business can claim Input Tax Credit on the 18% GST paid on courier and express-delivery bills, provided the standard Section 16 conditions are met.
- Courier is used for business (not personal use)
- Valid tax invoice from a GST-registered courier
- Invoice appears in your GSTR-2B
- Supplier has filed GSTR-1
- Payment made within 180 days of invoice
- Claimed within the Section 16(4) time limit
ITC on courier is especially valuable for e-commerce sellers, exporters and high-volume shippers. Exporters making zero-rated supplies can claim a refund of accumulated ITC on courier and logistics costs. ITC is not available on courier used for exempt supplies or purely personal / employee-welfare purposes.
Shipping at volume? Get your courier ITC reconciled with your GST returns.
Talk to a GST Expert →International & Export Courier Under GST
For cross-border courier the treatment depends on the direction of movement:
| Scenario | Treatment | Notes |
|---|---|---|
| Courier of goods being exported (conditions met) | Zero-rated | Export of service / zero-rated where place-of-supply & other conditions are satisfied |
| International courier — outbound, non-export | 18% | Standard courier service; ITC to registered recipient |
| Goods imported via courier | IGST at customs | Basic Customs Duty + IGST + cess collected on import — not domestic courier GST |
Zero-rating of export-consignment courier applies only where the statutory conditions are met — confirm your specific case with a GST practitioner and the GST portal.
For purely domestic shipments the answer is simpler: 18% applies universally across all private courier operators, regardless of distance or shipment value. Registration becomes mandatory once aggregate turnover crosses ₹20 lakh (₹10 lakh in special-category states).
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