Transport, travel and auto

GST invoice format for an air cargo agent

An air cargo agent books freight on airlines, prepares airway bills and handles cargo at airports, billing air freight under SAC 996531 and handling or documentation under 996719 and 996713, generally at 18%. The invoice must show the master and house airway bill numbers, flight details, origin and destination airports, gross and chargeable weight, airline freight rate, fuel and security surcharges, and the exchange rate for foreign currency charges, with the airline's own charges kept apart from the agent's fees.

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Sample air cargo agent invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Domestic air freight Mumbai to Delhi (MAWB/HAWB as per annexure), chargeable weight	996531	120 KG	68.00	8,160.00	18%
Fuel and security surcharge	996531	120 KG	22.00	2,640.00	18%
Airport cargo handling and X-ray screening	996719	1 SHIPMENT	1,500.00	1,500.00	18%
Airway bill preparation and documentation	996713	1 SHIPMENT	800.00	800.00	18%
Taxable value				₹13,100.00
GST (CGST + SGST, or IGST if inter-state)				₹2,358.00
Invoice total				₹15,458.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a air cargo agent invoice needs

MAWB and HAWB numbers: Air cargo moves under a master airway bill from the airline and a house airway bill from the agent. Both numbers link the invoice to the cargo and the airline's charges.
Flight number and date: Freight rates and surcharges depend on the flight and date. Printing them lets the shipper check that cargo flew as booked.
Gross and chargeable weight: Airlines charge on the higher of actual and volumetric weight. Showing both explains the freight amount.
Fuel and security surcharges: Airlines levy fuel and security surcharges per kilogram. Separate lines make the per-kilogram costs transparent.
Dangerous goods or special handling: Lithium batteries, perishables and valuables need special handling and documents. Noting the category explains extra charges.
Exchange rate used: International freight is often in foreign currency. Stating the rate used makes the rupee value verifiable.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a air cargo agent

Domestic air freight is taxable

Air transport of freight within India is a taxable service under 996531. The agent who buys space from an airline and sells it to a shipper at its own price is the supplier of transport to the shipper and charges 18% on the total. If the agent books cargo in the shipper's name and recovers the airline's charges at actual cost, those charges can be treated as pure agent amounts and only the agent's own fees are taxed.

International air freight and changing exemptions

Air freight for exports from India has been covered by exemptions that were extended year by year, and import air freight has its own rules on place of supply. Because the position has changed several times, an air cargo agent should check the current exemption notification before each financial year and apply it consistently. Wrongly charging GST on exempt export freight harms exporters, and wrongly exempting taxable freight creates a liability for the agent.

Intermediary agents for foreign airlines

Agents working for overseas airlines or foreign forwarders on commission may be intermediaries. The 56th GST Council recommended that the place of supply for intermediary services follow the default rule based on the recipient's location. Commission received from abroad may then qualify as an export of services if the other conditions are met. Keep agreements and foreign currency receipts on file.

Dangerous goods and documentation

Cargo containing lithium batteries or chemicals needs a shipper's declaration for dangerous goods. Agents who prepare these declarations and arrange special packaging charge for this work as part of their handling services. The invoice should list it separately, as shippers often question these charges.

Perishable and pharma cargo

Exporters of fruits, flowers, seafood and medicines rely on air cargo agents for cold chain handling at airports. Charges for temperature-controlled storage, pre-cooling and special packaging are services billed by the agent or the cargo terminal. When the agent pays the terminal and recovers at cost, it can treat these as pure agent amounts only if the terminal's invoice is in the shipper's name. Otherwise the agent includes them in its own taxable value. Clear invoices help exporters claim credit and refunds.

Courier versus air cargo

Small consignments may move as courier shipments or as air cargo. Courier services are under the postal and courier group at 18%, while air cargo moves on airway bills as air freight. The documents, customs procedures and SAC codes differ. Agents handling both should invoice each under its own SAC and keep separate shipment records, so that their returns and their clients' records match the actual mode used.

Common billing mistakes

Charging 18% only on the agent's fee while reselling airline space at a margin as if it were a reimbursement.
Using last year's export freight exemption without checking whether it was extended.
Omitting MAWB and HAWB numbers, making it hard for shippers to reconcile bills.
Billing chargeable weight without showing actual and volumetric weights.

Air Cargo Agent GST invoice: FAQ

Is GST charged on export air freight?

Export air freight has been covered by exemptions that have been extended from time to time. Check the current exemption notification for the period of shipment before deciding whether to charge GST.

Which SAC code applies to air cargo agents?

Air transport of freight falls under 996531, other cargo handling under 996719, and clearing and forwarding under 996713, as per the explanatory notes.

Can an air cargo agent act as a pure agent?

Yes, for airline charges booked in the shipper's name and recovered at actual cost, if the Rule 33 conditions are met. The agent's own fees remain taxable.

Should air freight in dollars be converted on the invoice?

Yes. The taxable value must be in rupees. State the foreign currency amount and the exchange rate used, following the valuation rules, so that the shipper can verify the rupee amount and GST.

Can an air cargo agent issue a consolidated monthly invoice?

Yes, for regular clients, provided each shipment is listed with MAWB, HAWB, weight and charges in an annexure, and the invoice is issued within the time limits for services.

Sources: GST Council — Explanatory notes to the Scheme of Classification of Services · GST Council — Press release, 56th meeting recommendations (rate changes)

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