GST invoice format for a courier service (courier franchise)
A courier company or franchise bills collection and delivery of documents and parcels under SAC 996812 at 18% GST with full input tax credit. Beyond the standard fields, a courier invoice must tie every charge to an airway bill (AWB) or docket number, show the chargeable weight and the zone, list fuel surcharge, cash-on-delivery fees and insurance as separate lines, and identify whether the shipment was domestic or an export, because international documents and parcels change the place of supply.
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Domestic document courier, within state (up to 500 g)
996812
40 SHIPMENT
45.00
1,800.00
18%
Surface parcel, rest of India (chargeable weight 5 kg)
996812
25 KG
62.00
1,550.00
18%
Fuel surcharge on freight (as per tariff month)
996812
1 LOT
410.00
410.00
18%
Cash-on-delivery handling fee
996812
12 SHIPMENT
40.00
480.00
18%
Carrier's risk charge on declared value
996812
3 SHIPMENT
150.00
450.00
18%
Taxable value
₹4,690.00
GST (CGST + SGST, or IGST if inter-state)
₹844.20
Invoice total
₹5,534.20
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a courier service invoice needs
AWB or docket number per shipment
Corporate clients reconcile monthly courier bills docket by docket. Every line or annexure row should carry the AWB number so a missing or duplicate shipment is easy to dispute before payment.
Actual and volumetric weight
Couriers charge on the higher of dead weight and volumetric weight. Printing both stops arguments about why a light but bulky carton was billed at a higher slab.
Destination zone or pincode
Rates differ for within city, within state, metro, rest of India and special zones such as the North East. Showing the zone explains the rate and helps the client check the tariff card.
Fuel surcharge percentage
Fuel surcharge is revised monthly by many courier networks. State the percentage and base so the client sees how it was calculated, and charge GST on it like the freight.
COD collection and remittance reference
For e-commerce sellers the courier collects cash on delivery and remits it later. The invoice should show the COD fee separately from the cash collected, which is the seller's money and not the courier's turnover.
Declared value and insurance or risk charge
Owner's risk and carrier's risk options carry different fees. Recording the declared value protects both sides when a parcel is lost and the claim limit has to be worked out.
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)
Courier services carry 18% with credit, and the press release of the 56th GST Council notes that local delivery services already fall under the postal and courier group. A courier that carries parcels by its own trucks between hubs is still a courier, not a goods transport agency, because it books articles against a docket rather than issuing a consignment note for goods. Clients sometimes ask for 5% because they assume all transport is GTA; the courier should refuse, since undercharging tax becomes the courier's own liability with interest.
E-commerce local delivery and section 9(5)
The Council recommended that local delivery services supplied through an electronic commerce operator be notified under section 9(5), making the platform liable to pay 18% where the delivery partner is not liable to register, and that such deliveries be kept outside GTA. Courier franchises that also do last-mile work for apps should keep platform-billed deliveries separate from their own direct invoices so that tax is not paid twice on the same delivery.
International shipments and place of supply
For courier services, the place of supply generally follows the location of the recipient of the service, but transport of goods to a place outside India has its own rules. An Indian exporter paying for an outbound parcel is still an Indian recipient, so the bill normally carries IGST or CGST plus SGST. Export of services under LUT arises only where the recipient is outside India and the other export conditions are met; do not zero-rate a bill merely because the parcel went abroad.
Franchise commission versus customer billing
In many networks the franchise collects from walk-in customers but the master company issues the invoice, and pays the franchise a commission. The commission is a separate taxable supply by the franchise at 18%. If the franchise issues its own invoices to customers, it must not also take credit on bills that the master company has already raised on the same customers.
Common billing mistakes
✕Charging GST only on base freight and leaving fuel surcharge, COD fee and insurance outside the taxable value, though all of them form part of the courier service.
✕Including COD cash collected for a seller in the courier's turnover or charging GST on it, when only the COD handling fee is the courier's income.
✕Billing walk-in customers without an AWB-wise record, making it impossible to reconcile GSTR-1 with the docket system at year end.
✕Treating every inter-city parcel as GTA freight at 5% and skipping 18%, which leaves the courier exposed on the difference.
Courier Service GST invoice: FAQ
What is the GST rate for courier services in 2025?
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Courier services remain at 18% with input tax credit after the 22 September 2025 rate changes. The rationalisation moved several transport services, but the courier group was left at 18%, and the Council confirmed that local delivery services covered under the postal and courier group continue at 18%.
Which SAC code should a courier invoice show?
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Courier services are classified in the postal and courier group, commonly billed under SAC 996812, while local delivery services are referred to as 996813 in the Council's press release. Use the code that matches the service and keep it consistent across your invoices and returns.
Can a small courier franchise use the composition scheme?
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The composition scheme for service providers allows service suppliers with turnover up to ₹50 lakh to pay a lower fixed rate, but such a supplier cannot charge GST on invoices and corporate clients lose credit. Many courier franchises therefore stay in the regular scheme because their business customers want 18% credit.
Do I need an e-way bill for courier parcels?
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Courier parcels of goods worth more than ₹50,000 require an e-way bill, which the consignor or the courier generates. Documents and low-value parcels do not. The courier invoice itself is a service bill and is not a document of goods movement.