GST Shipping Invoice Calculator India: 18% GST on Courier Service (SAC 9968)

GST on courier services in India is 18%, classified under Service Accounting Code 9968 (postal and courier services). If the supplier and recipient are in the same state, the 18% splits as 9% CGST + 9% SGST. If they are in different states, the full 18% is charged as IGST. The calculator below takes your freight, insurance, COD, and place of supply, and returns the exact GST breakdown plus a sample invoice line.

How to Use the GST Shipping Invoice Calculator

The widget above runs every line of the GST math. To use it:

1. Enter the freight charge in rupees — the base courier amount before any tax.
2. Add insurance, COD, and other charges if applicable. These all form part of the taxable value of supply.
3. Pick your origin state. This is where the supplier (courier) is registered for GST.
4. Pick the destination state. Same state as origin = intra-state (CGST + SGST). Different state = inter-state (IGST).
5. Read the result. The calculator returns CGST, SGST, IGST, total invoice value, and a copy-ready invoice line marked with SAC 9968.

The 18% rate is locked because SAC 9968 always attracts 18% under CBIC Notification 11/2017-Central Tax (Rate). For the broader cost picture beyond GST, see how to calculate shipping costs and the shipping cost calculator India guide.

GST Rate on Courier Service in India (SAC 9968)

Courier services attract a single rate: 18% GST. The breakdown:

• Intra-state: CGST 9% + SGST 9% = 18%
• Inter-state: IGST 18%
• Intra-UT (without legislature): CGST 9% + UTGST 9% = 18%

The Service Accounting Code is 9968 (postal and courier services). The rate is fixed by CBIC Notification 11/2017-Central Tax (Rate), dated 28-06-2017, S.No. 24 of the rate schedule. No reduced rate or composition scheme applies — every courier invoice carries 18% GST under forward charge.

Intra-state vs Inter-state GST on Courier (with Calculator Outputs)

This is the single decision that drives whether your invoice shows IGST or CGST+SGST:

• Intra-state — origin and destination in the same state. The 18% splits as 9% CGST + 9% SGST.
• Inter-state — origin and destination in different states (or different UTs). The full 18% is charged as IGST.
• Edge case: UTs without legislature — Lakshadweep, Chandigarh, Andaman & Nicobar, Ladakh, Dadra & Nagar Haveli and Daman & Diu use UTGST instead of SGST for intra-UT supplies. The calculator labels these as “SGST/UTGST” for clarity.
• Special case: Place of supply — for courier, governed by Section 12(8) of the IGST Act. For B2B (registered recipient), it is the recipient’s registered address; for B2C, it is where goods are handed over.

For the full compliance walkthrough — GSTIN on AWB, e-way bill thresholds, return filing — see the GST compliance shipping guide.

Courier vs Goods Transport Agency (GTA): Different GST Treatment

This is the #1 source of invoice classification errors:

A courier invoice issued under SAC 9965 at 5% RCM will be rejected at GST audit. Courier companies operate under 9968 forward charge. GTA covers truck operators issuing consignment notes — different business model, different SAC, different mechanism. The RCM list is at CBIC Notification 13/2017-Central Tax (Rate). For the macro picture of how GST reshaped courier vs trucking economics, see the GST courier services analysis and GST impact on logistics analysis.

Input Tax Credit (ITC) on Courier Invoices

If the courier is used for business purposes and the invoice carries your registered GSTIN, you can claim Input Tax Credit on the GST paid. This applies whether the GST shows as IGST or CGST + SGST — the credit utilisation rules in Section 49 govern the offset. ITC is blocked under Section 17(5) only when the courier is for personal use unrelated to business. Keep the original tax invoice and the AWB; both are typically requested during GST audits.

Reading a Courier GST Invoice (Line by Line)

A compliant courier tax invoice must carry:

• Supplier name + GSTIN — top of the invoice.
• Recipient name + GSTIN (if registered) + address.
• Place of supply — the state code that drives IGST vs CGST+SGST.
• SAC code 9968 with description “Postal and courier services”.
• Taxable value — freight + insurance + COD + other charges.
• CGST/SGST split or IGST line at 18%.
• Total invoice value in figures and words.
• AWB number as a reference (most carriers link the invoice to the AWB).

Mumbai-based businesses with multi-state operations issue the highest volume of GST courier invoices in our experience; the Mumbai city page covers area-wise pickup if you ship from the metro region. For the e-way bill side of compliance, see the GST e-way bill shipper complete guide.

The CBIC notification 11/2017-Central Tax (Rate) is available on the CBIC GST portal{target="_blank" rel=“noopener nofollow”}, and the SAC classification can be cross-checked on the GST portal{target="_blank" rel=“noopener nofollow”}.

This calculator is for general guidance. Verify the applicable rate and place-of-supply rules with your tax advisor before invoicing.

Frequently Asked Questions

What is the GST rate on courier services in India?

GST on courier services is 18%, classified under SAC 9968 (postal and courier services). It splits as CGST 9% + SGST 9% for intra-state shipments, or IGST 18% for inter-state shipments. The rate is set by CBIC Notification 11/2017-Central Tax (Rate).

When does IGST apply on a courier invoice?

IGST applies when the origin and destination are in different states or different Union Territories. The full 18% GST is charged as IGST. When origin and destination are in the same state, the 18% splits as 9% CGST + 9% SGST instead.

What is SAC code 9968 and what GST rate does it carry?

SAC 9968 is the Service Accounting Code for postal and courier services under the CBIC SAC classification. It attracts 18% GST, applicable to courier companies, parcel services, document express services, and last-mile delivery agents.

Is courier service the same as GTA for GST purposes?

No. Courier service falls under SAC 9968 at 18% GST under forward charge. Goods Transport Agency (GTA) services fall under SAC 9965 at 5% (no ITC) or 12% (with ITC) under reverse charge for registered recipients. The wrong classification leads to invoice rejection during GST audits.

Can I claim Input Tax Credit on courier invoices?

Yes, if the courier is used for business purposes and the invoice carries your registered GSTIN, you can claim Input Tax Credit on the GST paid. ITC is only blocked under Section 17(5) of the CGST Act if the courier is for personal use unrelated to business.

What is the place of supply for a courier service under GST?

For B2B (registered recipient), the place of supply is the recipient’s registered address, per Section 12(8) of the IGST Act. For B2C or unregistered recipients, it is the location where the goods are handed over to the courier. Place of supply determines whether IGST or CGST+SGST applies.

Does GST apply to the COD handling fee charged by couriers?

Yes. The COD handling fee is part of the value of supply and attracts the same 18% GST as the base freight. The calculator includes a COD input that adds to the taxable value before applying the GST rate.

What happens to GST if the courier is from a Union Territory like Chandigarh?

For UTs without their own legislature (Chandigarh, Lakshadweep, Dadra & Nagar Haveli and Daman & Diu, Ladakh, Andaman & Nicobar), intra-UT supplies attract CGST + UTGST instead of CGST + SGST. The 18% total stays the same. Delhi, Puducherry, and J&K have legislatures and use SGST.

Wrapping Up

Get a GST-compliant invoice with every booking — IGST or CGST+SGST split correctly by place of supply, SAC 9968 on every line, GSTIN on the AWB. Book a GST-compliant pickup and the invoice flows directly to your accounts team.