{"id":11148,"date":"2026-10-21T05:04:21","date_gmt":"2026-10-21T05:04:21","guid":{"rendered":"https:\/\/mybillbook.in\/blog\/?page_id=11148"},"modified":"2026-10-21T05:07:05","modified_gmt":"2026-10-21T05:07:05","slug":"leasing-or-rental-services","status":"publish","type":"page","link":"https:\/\/mybillbook.in\/blog\/sac-code\/leasing-or-rental-services\/","title":{"rendered":"Leasing or Rental Services SAC Code &amp; GST Rate in India"},"content":{"rendered":"<p>\n\n\n<p class=\"wp-block-paragraph\">The <strong>SAC code for leasing or rental services is 9973<\/strong>, which primarily covers the rental or operational leasing of machinery, equipment and other movable goods without an operator. The GST rate depends on the type of goods rented and the applicable tax entry. Many goods-rental services attract the same GST rate as the underlying goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Leasing and rental services use <strong>SAC (Services Accounting Code)<\/strong> rather than HSN because they are classified as services under GST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is the SAC Code for Leasing or Rental Services?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Leasing or rental services without an operator fall under <strong>SAC heading 9973<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This category includes the temporary use of machinery, equipment, computers, furniture and other movable goods without transferring ownership.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Particular<\/th><th>Details<\/th><\/tr><tr><td>Service<\/td><td>Leasing or rental services<\/td><\/tr><tr><td>SAC heading<\/td><td><strong>9973<\/strong><\/td><\/tr><tr><td>Service category<\/td><td>Leasing or rental services without operator<\/td><\/tr><tr><td>Classification<\/td><td>SAC, not HSN<\/td><\/tr><tr><td>Common examples<\/td><td>Equipment, machinery, computers and furniture rental<\/td><\/tr><tr><td>GST rate<\/td><td>Depends on the type of goods and applicable tax entry<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Heading 9973 also includes certain intellectual property licensing services, which have separate classifications within the heading.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">SAC Codes for Different Leasing and Rental Services<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The correct six-digit SAC depends on the goods or rights being leased or rented.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Rental or leasing service<\/th><th>SAC code<\/th><\/tr><tr><td>Transport equipment and container rental without operator<\/td><td><strong>997311<\/strong><\/td><\/tr><tr><td>Agricultural machinery rental without operator<\/td><td><strong>997312<\/strong><\/td><\/tr><tr><td>Construction machinery rental without operator<\/td><td><strong>997313<\/strong><\/td><\/tr><tr><td>Office machinery and equipment rental, excluding computers<\/td><td><strong>997314<\/strong><\/td><\/tr><tr><td>Computer rental<\/td><td><strong>997315<\/strong><\/td><\/tr><tr><td>Telecommunications equipment rental<\/td><td><strong>997316<\/strong><\/td><\/tr><tr><td>Other machinery and equipment rental<\/td><td><strong>997319<\/strong><\/td><\/tr><tr><td>Home entertainment equipment rental<\/td><td><strong>997321<\/strong><\/td><\/tr><tr><td>Furniture and household appliance rental<\/td><td><strong>997323<\/strong><\/td><\/tr><tr><td>Leisure equipment rental<\/td><td><strong>997324<\/strong><\/td><\/tr><tr><td>Household linen rental<\/td><td><strong>997325<\/strong><\/td><\/tr><tr><td>Clothing and footwear rental<\/td><td><strong>997326<\/strong><\/td><\/tr><tr><td>Other goods rental<\/td><td><strong>997329<\/strong><\/td><\/tr><tr><td>Licensing the right to use computer software and databases<\/td><td><strong>997331<\/strong><\/td><\/tr><tr><td>Licensing the right to use trademarks and franchises<\/td><td><strong>997336<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">These classifications are based on the official GST Council Scheme of Classification of Services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GST Rate on Leasing or Rental Services in India<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>There is no single GST rate applicable to every service under SAC 9973.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under the GST rate provisions for leasing or renting goods, the applicable rate generally follows the rate on the supply of like goods involving transfer of ownership.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, where qualifying equipment rental is covered by this provision and the underlying equipment attracts 18% GST, the rental service generally attracts 18% GST.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, businesses must check the exact nature of the rental service and applicable rate entry before issuing an invoice.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Machinery and Equipment Rental<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Rental of machinery and equipment without an operator generally falls under SAC group <strong>99731<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exact code depends on the type of equipment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, computer rental falls under SAC 997315, while construction machinery rental without an operator falls under SAC 997313.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The GST rate should be checked against the applicable rate for the goods and the relevant leasing or rental service entry.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Furniture and Household Goods Rental<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Rental of furniture and household appliances generally falls under <strong>SAC 997323<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other personal and household goods have separate codes under group 99732.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The GST rate depends on the goods being rented and the applicable tax provisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Intellectual Property Licensing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">SAC group <strong>99733<\/strong> covers licensing services involving intellectual property and similar rights.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples include licensing software, trademarks, franchises and other intellectual property.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These services have separate GST rate provisions and should not automatically be taxed at the rate applicable to rented machinery or equipment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GST Calculation Example for Equipment Rental<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose a business rents equipment for \u20b920,000, excluding GST.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Assume the applicable GST rate for the rental service is 18%.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Particular<\/th><th class=\"has-text-align-right\" data-align=\"right\">Amount<\/th><\/tr><tr><td>Equipment rental charges<\/td><td class=\"has-text-align-right\" data-align=\"right\">\u20b920,000<\/td><\/tr><tr><td>GST at 18%<\/td><td class=\"has-text-align-right\" data-align=\"right\">\u20b93,600<\/td><\/tr><tr><td>Total invoice value<\/td><td class=\"has-text-align-right\" data-align=\"right\"><strong>\u20b923,600<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">For an intra-state transaction, the GST consists of \u20b91,800 CGST and \u20b91,800 SGST.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an inter-state transaction, \u20b93,600 IGST generally applies, subject to the place-of-supply provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Note:<\/strong> This example assumes an applicable rate of 18%. It does not mean that every service under SAC 9973 attracts 18% GST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Difference Between Leasing, Rental and Financial Leasing Services<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Leasing and rental arrangements may fall under different SAC headings depending on their nature.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Service<\/th><th>SAC heading<\/th><\/tr><tr><td>Operating leasing or rental of movable goods without operator<\/td><td><strong>9973<\/strong><\/td><\/tr><tr><td>Financial leasing services<\/td><td><strong>9971<\/strong><\/td><\/tr><tr><td>Rental of residential or commercial property<\/td><td><strong>9972<\/strong><\/td><\/tr><tr><td>Rental of transport vehicles with operator<\/td><td><strong>9966<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">For example, renting a construction machine without an operator generally falls under SAC 997313.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, renting commercial premises falls under real estate services, not SAC 9973.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, a financial leasing arrangement may require classification under heading 9971 rather than 9973.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Identify the Correct SAC Code for Rental Services<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses should first identify the asset or right being rented.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next, determine whether the arrangement is an operating rental, financial lease or another type of service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For machinery and equipment, check whether an operator is included, as this may affect the classification.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then select the appropriate six-digit SAC code and verify the applicable GST rate, exemptions and conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses can use the official GST Portal to search SAC codes by service description.<\/p>\n\n\n\t\t<div class=\"wp-faq-schema-wrap\">\n\t\t\t\t\t\t\t<h2>Frequently Asked Questions<\/h2>\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<h3>What is the SAC code for leasing or rental services?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>The SAC heading for leasing or rental services without an operator is 9973. The exact six-digit code depends on the asset or right being leased or rented.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What is the GST rate on leasing and rental services?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>The GST rate depends on the service. Many goods-rental services attract the same GST rate as the underlying goods, while certain other leasing and licensing services have separate provisions.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What is the SAC code for machinery rental?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>Machinery rental without an operator generally falls under SAC group 99731. The exact code depends on the machinery, such as construction equipment, agricultural machinery or computers.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>Is commercial property rental covered under SAC 9973?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>No. Rental of commercial property generally falls under SAC 997212, which is part of real estate services under heading 9972.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n\n\n\n<h2 class=\"wp-block-heading\">Official Sources<\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.gstcouncil.gov.in\/sites\/default\/files\/2024-02\/scheme_of_classification_of_services_amended.pdf\">GST Council \u2013 Scheme of Classification of Services<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.gstcouncil.gov.in\/sites\/default\/files\/2024-02\/explanatory_notes_01oct19.pdf\">GST Council \u2013 Explanatory Notes to the Scheme of Classification of Services<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/cbic-gst.gov.in\/hindi\/gst-goods-services-rates.html\">CBIC \u2013 GST Rates for Goods and Services<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/cbic-gst.gov.in\/pdf\/circularno-32-cgst.pdf\">CBIC \u2013 Circular No. 32\/06\/2018-GST<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/services.gst.gov.in\/services\/searchhsnsac\">GST Portal \u2013 Search HSN\/SAC Code<\/a><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Last Reviewed: 21 October 2026<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SAC code for leasing or rental services is 9973, which primarily covers the rental or operational leasing of machinery, [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":11106,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"plain-container","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-11148","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Leasing or Rental Services SAC Code &amp; GST Rate<\/title>\n<meta name=\"description\" content=\"Find leasing or rental services SAC code 9973 and GST rates in India. 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