9973 SAC Code: Leasing or rental services

Description

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.

Notes

Hiring of passenger vehicles to State transport undertakings and goods vehicles to GTAs continues to be exempt as a support to public / freight transport.

Description

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.

Notes

One time / past period charges relating to pre-GST period were carved out from GST; that treatment remains unchanged in the new regime.

Description

Other Leasing or rental services, with or without operator

Notes

Residual leasing or rental services not covered by a specific concessional or exempt entry stay at 18% with ITC. From 1 Nov 2026 the grant by the Central or State Government, a Union Territory, local authority, Governmental Authority or Government Entity of the exclusive right of way or access, licence and authority to demand, collect and keep toll fee is exempt. Source: Notification 11/2017-Central Tax (Rate), S. No. 17; Notification 12/2017-Central Tax (Rate), S. No. 42A, as inserted by Notification 07/2026-Central Tax (Rate).

Description

Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Railways Finance Corporation to Indian Railways.

Notes

The exemption for IRFC leasing rolling stock to Indian Railways was withdrawn from 1 October 2021; such leases now pay the rate on railway rolling stock, which is 18%. Source: Notification 07/2021-Central Tax (Rate) omitting S. No. 43 of 12/2017-Central Tax (Rate); Notification 11/2017-Central Tax (Rate), S. No. 17(viia).

Description

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.

Notes

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.

Description

Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of goods other than Information Technology software.

Notes

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.

Description

Leasing of motor vehicles purchased and leased prior to 1st July 2017

Notes

The 65% concession for vehicles bought and leased before 1 July 2017 ended on 30 June 2020; such leases now pay the rate (and any cess) that applies to selling the same vehicle. Source: Notification 11/2017-Central Tax (Rate), S. No. 17(iv)/(viia), as amended by 20/2019.

Description

(vii) Time charter of vessels for transport of goods.

Notes

Credit is allowed on input services and on ships or vessels, but not on other goods; this supply is now classified under 9966, and chartering a vessel without crew is taxed at the vessel's own rate. Source: Notification 11/2017-Central Tax (Rate), S. No. 10(ii) as substituted by 01/2018.

Description

Leasing or rental services concerning transport equipments including containers, with or without operator

Notes

Leasing transport equipment such as containers is taxed at the GST rate that applies to selling the same equipment; renting a vehicle with a driver falls under 9966 instead. Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning agricultural machinery and equipment with or without operator

Notes

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.

Description

Leasing or rental services concerning construction machinery and equipment with or without operator

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning office machinery and equipment (except computers) with or without operator

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning computers with or without operators

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning telecommunications equipment with or without operator

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning other machinery and equipments with or without operator

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning televisions, radios, video cassette recorders, projectors, audio systems and related equipment and accessories (Home entertainment equipment )

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning video tapes and disks (Home entertainment equipment )

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning furniture and other household appliances

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning pleasure and leisure equipment.

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning household linen.

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning textiles, clothing and footwear.

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning do-it-yourself machinery and equipment

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Leasing or rental services concerning other goods

Notes

Leasing or renting goods, with or without an operator, is taxed at the GST rate that applies to selling the same goods, so check the rate of the item leased (for example 5%, 18% or 40%). Source: Notification 11/2017-Central Tax (Rate), S. No. 17(viia), as amended by 27/2018 and 20/2019.

Description

Licensing services for the right to use computer software and databases.

Notes

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.

Description

Licensing services for the right to broadcast and show original films, sound recordings, radio and television programme etc.

Notes

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.

Description

Licensing services for the right to reproduce original art works

Notes

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.

Description

Licensing services for the right to reprint and copy manuscripts, books, journals and periodicals.

Notes

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.

Description

Licensing services for the right to use R&D products

Notes

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.

Description

Licensing services for the right to use trademarks and franchises

Notes

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.

Description

Licensing services for the right to use minerals including its exploration and evaluation

Notes

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.

Description

Licensing services for right to use other natural resources including telecommunication spectrum

Notes

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.

Description

Licensing services for the right to use other intellectual property products and other resources n.e.c

Notes

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.