Postal and Courier Charges HSN Code 9968 and GST Rate

What is HSN Code 9968?

HSN code 9968 is assigned to postal and courier services, capturing a broad range of delivery and logistics services. Under this group, all courier operations—be it standard or express, local or national—are covered for GST classification and taxation.​

Typical services under courier hsn code 9968:

• Government and private postal delivery
• Courier charges for express/logistics/parcels (domestic & international)
• Local delivery (messenger, parcel, bike delivery)
• Registered mail, mail-box rentals, and special postal services

Sub-classifications exist for postal (996811), courier (996812), local delivery (996813), and other specialized delivery services.

GST Rates & Exemptions for HSN Code 9968

The 9968 hsn code gst rate is 18% for all types of postal, courier, and messenger services in India. This flat rate applies to India Post, private courier brands, logistics companies, and parcel services alike.There are no general exemptions—GST is charged on the gross value of all postal and courier transactions.​

Key GST Facts:

• 9968 hsn code GST rate: 18% (as per latest GST Council updates)
• Uniform for all types: courier, postal, local, express delivery
• ITC available for eligible business uses of courier services

Table Notes

• Always use the precise SAC sub-code (996812 for courier charges) on invoices to simplify tax credit and compliance.
• GST on courier services at 18% is mandatory regardless of value, speed, or transit mode.

GST Rates Applicable Under 9968

(Rates as per GST notifications and CBIC master codes, 2025).​

What’s Included under HSN Code 9968?

HSN code 9968 applies to:

• Courier (all forms: express, overnight, global, regional)
• Third-party parcel & package logistics
• Postal office counter, registry, and mail-box rental
• Local and hyperlocal delivery by foot, bike, or van
• Services for document dispatch, e-commerce shipping, business logistics

It covers every paid delivery other than personal friends or direct business fleet (unless billed as courier/logistics).​

Explore Gimbooks HSN/SAC code & GST Rate finder

Key Exemptions Under GST for Courier Services

• No standard exemption for courier charges under 9968 hsn code
• The only exception: delivery services certified by the Ministry of Youth Affairs for official government events, such as international sports tournaments, as per direct CBIC notification
• All common commercial, retail, B2B, or e-commerce deliveries are taxed at 18%

Input Tax Credit (ITC) Rules for Courier Services

ITC is allowed on all GST paid for postal/courier charges invoiced under 9968 hsn code if services are for:

• Commercial operations, business correspondence, e-commerce shipments
• Import/export freight for taxable goods
• Billable distribution or logistics processes

ITC is not available for:

• Personal use shipments or exempt supplies
• Composition dealers, except for eligible outward taxable supplies

Example:A company spends ₹50,000 on courier charges (at 18% GST = ₹9,000 GST).₹9,000 can be claimed as input tax credit if charges are for business use.

GST on Courier Services: Practical Scenarios

1. E-commerce vendor: Ships products via courier with 18% GST billable; claims ITC on logistics spend.
2. Exporter: Pays GST on international courier charges, sets off with output liabilities if shipping taxable goods.
3. Retail business: Invoices customer for courier at 18% GST as a separate line in bill.
4. Legal firm: Uses courier for contracts/documents—claimable ITC if billed in firm’s GSTIN.

Common Mistakes in Postal & Courier GST Billing

• Using incorrect SAC (service accounting code) or generic transport HSN for courier
• Not charging GST on delivery-fee line item for customer shipments
• Claiming ITC on staff’s personal package shipments
• Ignoring international courier GST (still 18% even if outbound)

Conclusion

Postal & courier charges under HSN code 9968 are uniformly taxed at 18%, with ITC fully available for business users. Clear code use and documentation simplify GST compliance for e-commerce, logistics, offices, and exporters.Always reference 9968 hsn code gst rate for every courier and parcel billing in 2025.​

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FAQs: Postal & Courier HSN Code 9968 & GST

What is the courier charges HSN code?

The SAC for courier is 996812 (under main code 9968 for all postal/courier services).

What is the standard GST rate on courier services in India?

The rate is 18% for all courier, postal, and messenger services.

Can a business claim ITC on courier or postal services?

Yes, if expenses are for taxable business activity and GSTIN is on the invoice.

Are there GST exemptions for courier or local delivery services?

No, all paid courier/delivery/parcel services are taxed at 18% unless under specific government event notification.

Should courier providers mention 9968 hsn code in ICES/GST e-invoicing?

Yes, always use 9968 (and relevant sub-code) for correct ITC and faster processing.