Aircraft Rental Services Under SAC Code 996603
Aircraft rental services cover renting passenger or freight aircraft with or without crew for specific routes, time periods or projects. Operators and leasing companies provide aircraft capacity to airlines, corporates or cargo operators under lease or charter agreements. Under GST, these aircraft rental and charter services are classified under SAC 996603. This SAC code and its GST rate decide how GST is charged on aircraft rental charges.
Aircraft Rental Services GST Rate for SAC Code 996603
Aircraft rental services under SAC 996603 are treated as rental services of aircraft under GST. High value rentals often involve complex arrangements between lessors, airlines and corporate users.
After the September 2025 rationalisation, most vehicle, boat and aircraft rental services under these codes generally fall in the 18 percent slab with input tax credit, as they are input intensive business services. In limited passenger transport linked cases, other specific treatments may apply based on the latest notifications.
The table below shows the latest standard GST rate for SAC code 996603 for typical rental services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996603 | Rental services of aircraft including passenger aircrafts, freight aircrafts etc with or without operator | 18% with ITC | 18% with ITC | Aircraft rental for passenger or cargo operations is typically taxed at the standard 18% with ITC. The 56th Council’s logistics changes focus on motor vehicles, goods carriages and certain pipeline or container movements, so no slab shift is applied here. |
When issuing rental invoices under this SAC code, service providers should clearly show the rental amount, the applicable GST rate and tax value so that business customers can account for the expense and input tax credit correctly. The same SAC code and rate should then be reflected in GSTR 1 and GSTR 3B for outward supplies to keep GST records clear and consistent.
Explore Other SAC Codes Under 9966
This SAC code is part of the rental and support services to transportation group 9966, which covers renting of vehicles, vessels and aircraft, cargo handling, storage and other allied support services. The six digit codes under this group help separate pure rental, warehousing and operational support for GST reporting.
Below is a list of related six-digit SAC codes under 9966
Service providers should choose the SAC code that best represents whether they are renting transport assets, handling cargo or providing warehousing and support. Correct SAC selection and GST rate application help businesses claim input tax credit properly and make GST returns easier to explain during audits or departmental checks.
Conclusion
Aircraft rental services under SAC 996603 cover renting aircraft with or without crew for passenger or cargo use. These high value services are usually taxed at 18 percent with input tax credit for eligible business users. Lessors, airlines and corporate users should frame contracts clearly, apply the proper GST rate on rental or lease bills and maintain detailed records in GST returns. For cross border leasing and complex finance structures, it is essential to follow the latest GST guidance and take expert advice.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.