--- title: "Equipment Leasing Services | Professional Equipment Leasing Solutions" description: "Expert equipment leasing services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 997114." canonical: "https://busy.in/sac-code-997114/" --- # Equipment Leasing under SAC Code 997114 Part of [SAC 9971: Financial & related services](https://busy.in/sac-code-9971/). Equipment leasing services cover arrangements where a business gives machines, vehicles or other equipment to customers for agreed rentals instead of selling the assets outright. The lessee uses the equipment in its operations and pays rental instalments as per the lease contract. Under GST, such equipment leasing and finance lease services are classified under SAC 997114. This SAC code and its GST treatment decide how GST applies on lease rentals and related charges. ## 997114 SAC Code GST rate Equipment leasing, miscellaneous financial and investment banking services under these codes are treated as financial services under GST. The taxable part is mainly fee based income, rentals and advisory charges collected from customers, while interest like elements may have separate treatment. After the September 2025 rationalisation, taxable financial service charges that are not specifically exempt are generally kept in the 18 % slab with input tax credit for registered recipients. Banks, leasing companies and investment banks therefore need to separate taxable fees and rentals from exempt interest components and apply GST only on the taxable portion. **The table below explains the prevailing GST treatment for SAC code 997114, highlighting the standard 18 % rate on taxable financial service charges.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 997114 | Financial leasing services | 18% with ITC | 18% with ITC | Financial leasing services (for example, equipment leasing with finance element) are treated as taxable financial services at 18% with ITC in most rate references. The 56th Council’s rationalisation does not announce a separate reduced slab for this SAC, so the rate remains at 18% with ITC. | Financial institutions using this SAC code should clearly show processing fees, advisory charges or lease rentals on invoices, mention the GST rate in % and tax amount and reflect the same classification in GSTR 1 and GSTR 3B. This helps customers claim input tax credit correctly on eligible charges and keeps GST scrutiny smoother for both sides. ## Practical classification guidance Banks, NBFCs, insurers and intermediaries should map each product to the correct SAC, checking whether the income is fee based and taxable or interest or risk cover that may have special treatment. Proper SAC selection and correct GST rate application in % reduce disputes, help customers claim input tax credit on eligible charges and keep GST returns easier to justify during audits. ## Conclusion Equipment leasing services under SAC 997114 cover rental based use of machinery, vehicles and other assets. The GST focus is on taxable lease rentals and service charges, which generally attract 18 % with input tax credit for business users, while any interest like finance component may have separate treatment. Leasing companies should define rentals and charges clearly, apply the correct GST rate in %, mention SAC 997114 on invoices and keep matching treatment in GST returns so that clients can manage input tax credit smoothly. ## Frequently asked questions ### What does SAC code 997114 cover in GST? SAC 997114 covers financial leasing services where the lessor provides equipment, vehicles or machinery to a lessee for a long period, often with an option to purchase. It is similar to a financed asset purchase spread over time, with periodic payments from the customer. ### Does SAC 997114 include financial leasing of equipment, vehicles and machinery? Yes. Lease arrangements where the risk and reward of ownership largely pass to the user and payments include a finance component fall under SAC 997114. This is different from simple operating leases or rentals, which may be classified under separate SAC codes for renting of goods. ### What GST rate applies to equipment leasing services under SAC 997114? Financial leasing services are generally taxable at 18% on the service portion or on the total lease consideration as per GST valuation rules. The structure can be complex because part of the payment represents interest. Specific GST circulars and rules guide how to compute taxable value for leases. ### How is GST calculated on EMIs for leases classified under SAC 997114? For financial leases, GST is usually calculated on the taxable value of the service portion in each instalment, often including interest as part of the value. The exact method depends on the lease structure, and lenders follow GST rules to decide how much of each EMI is taxable. ### Can lessees claim ITC on GST paid for SAC 997114 leases used for business purposes? Where leased equipment or vehicles are used for taxable business activities, lessees can normally claim ITC on the GST charged on lease instalments, subject to blocked credit rules for certain motor vehicles. Proper lease invoices and clear linkage to business use are important to support ITC claims. ## Explore more ### Other SAC services under 9971 - [997111: Central Banking](https://busy.in/sac-code-997111/) - [997112: Deposit](https://busy.in/sac-code-997112/) - [997113: Credit Granting](https://busy.in/sac-code-997113/) - [997119: Financial](https://busy.in/sac-code-997119/) - [997120: Investment Banking](https://busy.in/sac-code-997120/) - [997131: Pension](https://busy.in/sac-code-997131/) - [997132: Life Insurance](https://busy.in/sac-code-997132/) - [997133: Accident Insurance](https://busy.in/sac-code-997133/) - [997134: Motor Insurance](https://busy.in/sac-code-997134/) - [997135: Transport Insurance](https://busy.in/sac-code-997135/) - [997136: Freight Insurance](https://busy.in/sac-code-997136/) - [997137: Property Insurance](https://busy.in/sac-code-997137/) - [997139: Non Life Insurance](https://busy.in/sac-code-997139/) - [997141: Life Reinsurance](https://busy.in/sac-code-997141/) - [997142: Accident Reinsurance](https://busy.in/sac-code-997142/) - [997143: Motor Reinsurance](https://busy.in/sac-code-997143/) - [997144: Marine Reinsurance](https://busy.in/sac-code-997144/) - [997145: Cargo Insurance](https://busy.in/sac-code-997145/) - [997146: Commercial Property Insurance](https://busy.in/sac-code-997146/) - [997149: Non Life Reinsurance](https://busy.in/sac-code-997149/) - [997151: M&A Advisory](https://busy.in/sac-code-997151/) - [997152: Stock Brokerage](https://busy.in/sac-code-997152/) - [997153: Portfolio Management](https://busy.in/sac-code-997153/) - [997154: Custody](https://busy.in/sac-code-997154/) - [997155: Financial Market](https://busy.in/sac-code-997155/) - [997156: Financial Consulting](https://busy.in/sac-code-997156/) - [997157: Foreign Exchange](https://busy.in/sac-code-997157/) - [997158: Transaction Processing](https://busy.in/sac-code-997158/) - [997159: Financial Support](https://busy.in/sac-code-997159/) - [997161: Insurance Advisory](https://busy.in/sac-code-997161/) - [997162: Insurance Claim](https://busy.in/sac-code-997162/) - [997163: Actuarial](https://busy.in/sac-code-997163/) - [997164: Pension Fund Management](https://busy.in/sac-code-997164/) - [997169: Insurance Support](https://busy.in/sac-code-997169/) - [997171: Holding Company](https://busy.in/sac-code-997171/) - [997172: Trust Fund Management](https://busy.in/sac-code-997172/) ### All SAC headings - [99: All Services Accounting](https://busy.in/sac-code-99/) - [9954: Services in building & construction](https://busy.in/sac-code-9954/) - [9961: Services in wholesale trade](https://busy.in/sac-code-9961/) - [9962: Services in retail trade](https://busy.in/sac-code-9962/) - [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/) - [9964: Passenger transport services](https://busy.in/sac-code-9964/) - [9965: Goods transport services](https://busy.in/sac-code-9965/) - [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/) - [9967: Supporting services in transport](https://busy.in/sac-code-9967/) - [9968: Postal & courier services](https://busy.in/sac-code-9968/) - [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/) - [9971: Financial & related services](https://busy.in/sac-code-9971/) - [9972: Real estate services](https://busy.in/sac-code-9972/) - [9973: Leasing or rental services](https://busy.in/sac-code-9973/) - [9981: Research & development services](https://busy.in/sac-code-9981/) - [9982: Legal & accounting services](https://busy.in/sac-code-9982/) - [9983: Professional, technical & business services](https://busy.in/sac-code-9983/) - [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/) - [9985: Support services to business](https://busy.in/sac-code-9985/) - [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/) - [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/) - [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/) - [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/) - [9991: Public administration & other services](https://busy.in/sac-code-9991/) - [9992: Education services](https://busy.in/sac-code-9992/) - [9993: Human health & social care services](https://busy.in/sac-code-9993/) - [9994: Sewage & waste collection](https://busy.in/sac-code-9994/) - [9995: Services of membership organizations](https://busy.in/sac-code-9995/) - [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/) - [9997: Other Services](https://busy.in/sac-code-9997/)