9973 SAC Code: Leasing or rental services

SAC code 9973 specifically pertains to leasing or rental services of immovable property. It encompasses transactions involving the leasing or renting of land, buildings, and other immovable properties. This code covers a diverse range of services related to the temporary use or occupation of such properties, typically in exchange for a periodic payment or rental fee.

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Scope of SAC Code 9973

Under SAC code 9973, various types of immovable properties can be included, such as residential houses, commercial spaces, office buildings, industrial premises, warehouses, and vacant land. It applies to both short-term and long-term lease or rental agreements.

By utilizing SAC code 9973, the GST process for leasing or rental services of immovable property becomes more streamlined. It ensures that the appropriate GST rates and regulations are applied to these transactions, enabling accurate taxation and compliance within the real estate sector.

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Categorisation of SAC Code 9973

SAC Code 9973 under GST can be classified in the following ways:

SAC Code Description Old GST Rate
(till 21 Sep 2025)		 New GST Rate
(from 22 Sep 2025)		 Notes on change / inclusions
9973 Services by way of giving on hire Ð (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (b) to a goods transport agency, a means of transportation of goods. 0% without ITC 0% without ITC Hiring of passenger vehicles to State transport undertakings and goods vehicles to GTAs continues to be exempt as a support to public / freight transport.
9973 Services provided by the Central Government, State Government, Union territory or local authority by way of allowing a business entity to operate as a telecom service provider or use radio frequency spectrum during the period prior to the 1st April, 2016, on payment of licence fee or spectrum user charges, as the case may be. 0% without ITC 0% without ITC One time / past period charges relating to pre-GST period were carved out from GST; that treatment remains unchanged in the new regime.
9973 Other Leasing or rental services, with or without operator 18% with ITC 18% with ITC Residual leasing / rental services that are not covered by any specific concessional / exempt entry continue at the standard 18% slab.
9973 Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Railways Finance Corporation to Indian Railways. 5% with ITC 5% with ITC Concessional rate for leasing of rolling stock to Indian Railways continues; no change has been signalled for this specific relationship.
9973 Services provided by the Central Government, State Government, Union territory or local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Central Government, State Government, Union territory or local authority before the 1st April, 2016: Provided that the exemption shall apply only to tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource. 0% without ITC 0% without ITC One time upfront charges for pre-GST assignment of natural resources continue to be kept outside the GST levy as per the specific carve out; no new rate has been imposed.
9973 Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of goods other than Information Technology software. 18% with ITC 18% with ITC Licensing of IP (other than IT software) is treated as a normal taxable service. No explicit 12% → 5% movement has been prescribed for this entry in the latest service rate rationalisation, so it stays at the standard 18% slab with full ITC.
9973 Leasing of motor vehicles purchased and leased prior to 1st July 2017 18% with ITC 18% with ITC This was a special transitional entry in the early GST period. The original concessional valuation for such legacy leases has effectively run its course; ongoing taxable leasing receipts are aligned to the standard 18% services slab with full ITC. No fresh change is made in the 22 Sep 2025 rationalisation.
9973 (vii) Time charter of vessels for transport of goods. 18% with ITC 18% with ITC Time charter of vessels (where effective control rests with the charterer) is treated as a normal leasing / transport support service and charged at the standard 18% rate. It is not one of the services moved between 12% and 5% / 18% in the Sep 2025 changes, so both old and new remain 18% with ITC.
997311 Leasing or rental services concerning transport equipments including containers, with or without operator 18% with ITC 18% with ITC Standard leasing of transport equipment is treated under the 18% services slab in current HSN rate tools and interpretative articles on lease services. Older 12% references relate mainly to special sports linked concessions. No rate change has been notified for this specific SAC under GST 2.0.
997312 Leasing or rental services concerning agricultural machinery and equipment with or without operator 0% without ITC or 18% with ITC 0% without ITC or 18% with ITC Multiple independent sources list this code as Nil where agricultural machinery is rented to farmers for agricultural operations, aligning with the exemption for certain agri support services. Where the same machinery is leased for non agricultural or commercial use, it is treated as a normal taxable service at 18%. The 56th Council did not alter this pattern of exemption plus standard rate.
997313 Leasing or rental services concerning construction machinery and equipment with or without operator 18% with ITC 18% with ITC Construction machinery leasing is generally a business to business capital service and is placed at 18% in GST rate finders and explanatory notes on lease services. No new concessional slab or exemption for this code appears in the September 2025 decisions.
997314 Leasing or rental services concerning office machinery and equipment (except computers) with or without operator 18% with ITC 18% with ITC Office machinery leasing is treated as a standard taxable service at 18% in recent SAC rate references. The two slab GST structure has not introduced a separate rate for this category.
997315 Leasing or rental services concerning computers with or without operators 18% with ITC 18% with ITC Computer leasing and rental continues to fall in the 18% slab as per current 9973 code listings. There is no indication in the 56th Council outcomes that this SAC should move to a different rate.
997316 Leasing or rental services concerning telecommunications equipment with or without operator 18% with ITC 18% with ITC Telecommunication equipment leasing is aligned with other machinery leasing at 18%. Recent GST resources on leasing services maintain this rate and the latest rate rationalisation has not created a separate category for it.
997319 Leasing or rental services concerning other machinery and equipments with or without operator 18% with ITC 18% with ITC A broad residual category for machinery leasing, consistently shown at 18% in SAC rate tools and guidance articles. No specific reference to this SAC appears in the 56th Council press notes, so the 18% slab continues.
997321 Leasing or rental services concerning televisions, radios, video cassette recorders, projectors, audio systems and related equipment and accessories (Home entertainment equipment ) 18% with ITC 18% with ITC Historically some tables show 12% or 5% in connection with sports related exemptions, but for regular commercial leasing of home entertainment equipment the standard GST rate applied is 18%. No new concession has been announced for this SAC in September 2025.
997322 Leasing or rental services concerning video tapes and disks (Home entertainment equipment ) 18% with ITC 18% with ITC Treated as part of home entertainment equipment leasing. Current HSN tools group it with other 99732x lease services at 18%. The 56th Council rationalisation does not single out this SAC for a different slab, so the standard 18% rate continues.
997323 Leasing or rental services concerning furniture and other household appliances 18% with ITC 18% with ITC Typical leasing of household furniture and appliances is treated as a general service under 9973 at 18% with ITC in recent SAC-wise rate charts. While some contracts that amount to “transfer of right to use goods” can follow the goods rate, the standard reference rate remains 18% and is unchanged under the 56th Council’s 5%–18% framework.
997324 Leasing or rental services concerning pleasure and leisure equipment. 18% with ITC 18% with ITC Lease of leisure equipment (boats, games, entertainment gear etc.) is clubbed with other leasing services under 9973 and widely shown at 18% with ITC. No specific rationalisation entry targets this SAC, so the standard 18% continues after 22 Sep 2025.
997325 Leasing or rental services concerning household linen. 18% with ITC 18% with ITC Household linen rental falls in the same “other leasing” cluster under 9973. SAC-wise tools show 18% as the operative rate; the move to a 5% / 18% / 40% structure leaves this at the standard 18% slab.
997326 Leasing or rental services concerning textiles, clothing and footwear. 18% with ITC 18% with ITC Recent leasing-services matrices list this SAC at 18% with ITC. Some guidance notes allow “same rate as like goods” for specific transfer-of-right transactions, but typical commercial rentals are treated at 18%, unchanged by GST 2.0.
997327 Leasing or rental services concerning do-it-yourself machinery and equipment 18% with ITC 18% with ITC DIY machinery rental is grouped with other machinery / tool leasing. Current SAC references show 18% GST with ITC and there is no 56th-meeting announcement reducing this category to 5%, so the standard 18% slab remains.
997329 Leasing or rental services concerning other goods 18% with ITC 18% with ITC Residual leasing of goods is shown at 18% in multiple SAC-wise rate lookups. The rationalisation mainly removed 12% and 28% slabs; no alternate 5% entry has been created for this generic leasing bucket, so 18% stays as the typical rate.
997331 Licensing services for the right to use computer software and databases. 12% with ITC or 18% with ITC 18% with ITC Historic entries showed 12% for some permanent transfers of IPR and 18% for software IPR, plus a time-bound nil rate for certain sports-event related supplies. Recent SAC-specific tools now show 18% as the working rate for this code. With the 12% slab removed from 22 Sep 2025, the typical rate consolidates at 18% with ITC.
997332 Licensing services for the right to broadcast and show original films, sound recordings, radio and television programme etc. 12% with ITC or 18% with ITC 18% with ITC Earlier rate tables list this SAC with 12% / 18% plus a nil option limited to specified international sports events; in practice most broadcasting rights have been taxed at 18%. Under the new 5% / 18% regime, the 12% option migrates to 18%, with any narrow event-based exemption continuing separately.
997333 Licensing services for the right to reproduce original art works 12% with ITC or 18% with ITC 18% with ITC Similar pattern as 997332: older schedules showed 12% / 18% and a nil concession for specific certified sports events. Current SAC-wise listings treat these artistic reproduction rights at 18% with ITC; after 22 Sep 2025 the intermediate 12% slab is folded into the 18% standard rate.
997334 Licensing services for the right to reprint and copy manuscripts, books, journals and periodicals. 12% with ITC or 18% with ITC 18% with ITC This code historically carried 12% / 18% with a nil option tied to certified sports events. Latest IPR-service overviews and SAC-wise tools show 18% being applied in normal commercial scenarios. With 12% removed as a slab, the typical rate becomes 18% with ITC.
997335 Licensing services for the right to use R&D products 12% with ITC or 18% with ITC 18% with ITC Licensing of R&D outputs was also mapped with 12% / 18% historically but is now generally listed at 18% GST with ITC for standard supplies. From 22 Sep 2025, the 12% option is rationalised into the 18% slab, leaving 18% as the typical rate.
997336 Licensing services for the right to use trademarks and franchises 12% with ITC or 18% with ITC 18% with ITC Franchise and brand licensing under this code has been widely treated at 18% GST with ITC, even though earlier notifications mentioned 12% for some IPR transfers and a limited nil concession for certain sports events. After the removal of the 12% slab, the operative rate settles at 18% with ITC for typical franchise / trademark licensing.
997337 Licensing services for the right to use minerals including its exploration and evaluation 12% with ITC or 18% with ITC 18% with ITC Rate charts for IPR-related licensing under 99733 show this code with 12% / 18% historically, but most recent SAC-wise tools now list 18%. With GST 2.0 merging 12% slabs into 5% or 18% and no explicit 5% entry for this service, the practical rate is 18% with ITC from 22 Sep 2025.
997338 Licensing services for right to use other natural resources including telecommunication spectrum 12% with ITC or 18% with ITC 18% with ITC Licensing of spectrum and similar natural resources falls under the same IPR licensing heading; current SAC-wise references show 18% as the GST rate. The 56th Council’s rationalisation takes previous 12% entries into the 18% band, so 18% with ITC becomes the standard rate thereafter.
997339 Licensing services for the right to use other intellectual property products and other resources n.e.c 12% with ITC or 18% with ITC 18% with ITC Residual intellectual-property licensing under 997339 is now typically shown at 18% GST with ITC. Older tables mentioning 12% plus narrow nil exemptions are effectively rationalised by shifting the 12% portion into the standard 18% services slab.

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.

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Frequently Asked Questions

  • What does SAC 9973 cover?

     SAC 9973 covers leasing or rental services of machinery and equipment, with or without an operator. It includes rental of industrial machines, construction equipment, office machines, computers and other equipment where ownership stays with the lessor and the customer pays a period based rental fee.

  • What is the GST rate under SAC 9973?

    Most leasing or rental services under SAC 9973 are taxed at 18% with ITC. Some special notified cases may have different treatment, but for normal rentals of machinery and equipment, you should usually charge 18% GST on the rental value.

  • Is GST charged on renting industrial machinery?

     Yes, Renting industrial machinery like construction equipment, production machines or factory equipment is generally covered under SAC 9973 and taxed at 18% with ITC. If the machinery is used for business, the recipient can normally claim ITC on the GST charged, subject to normal conditions.

  • Does renting furniture or office equipment fall under this code?

     Yes. Renting office furniture, photocopiers, printers and other office equipment usually falls under SAC 9973. The service provider charges 18% GST on the rental value and can claim ITC on inputs. The customer can also claim ITC if using the items for taxable business activities.

  • Is GST applicable when renting vehicles without a driver?

     Renting transport equipment like cars, buses or trucks without a driver is usually treated as leasing of transport equipment under SAC 9973 and taxed at 18%. This is different from passenger transport or vehicle rental with driver, which uses other SAC codes and rates.


  • Is farm or agricultural machinery rental taxed?

     If farm machinery like tractors or harvesters is rented purely for agricultural operations, it may be exempt under agriculture support service entries. In such cases the service is usually classified under SAC 9986, not 9973. Commercial rentals not linked to agriculture are normally taxable at 18%.

  • Does GST apply if property is rented under this code?

    No, Rental of immovable property like shops, offices or houses is not classified under 9973. It comes under real estate services (SAC 9972). GST on renting property depends on the type of property and use, but it is handled separately from machinery leasing.


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