Transport Equipment Rental Under SAC Code 997311

Transport equipment rental services involve giving trucks, trailers and other commercial vehicles on rent with or without drivers. Businesses use transport equipment rental and commercial vehicle leasing to handle seasonal or project based logistics needs without buying vehicles outright. Under GST, such transport equipment rental services are classified under SAC 997311. This SAC code and its GST rate decide how GST is charged on rental charges and related logistics support services.

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997311 SAC Code GST Rate

Review old and new GST rates for Transport Equipment Rental under 997311 SAC Code.

Transport equipment rental services under this SAC code are treated as leasing of movable goods for GST purposes. The taxable value usually includes rental charges, driver or operator fees where applicable and any other service components billed to the customer, while tolls or government levies reimbursed at actuals may be kept outside the value if the documentation supports it.

After the September 2025 GST rationalisation, most taxable transport equipment rental services that are not specifically covered by a concessional rate are generally placed in the 18% slab, with input tax credit available for eligible registered business customers who use the vehicles for taxable outward supplies.

The table below summarises the prevailing GST treatment for SAC code 997311, indicating the standard 18% slab for transport equipment rental services and any notified variations for particular leasing models.

SAC Code

997311

Description

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

New Rate

Same rate as the goods leased

Old Rate

Same rate as the goods leased

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.

Fleet owners and rental operators using SAC 997311 should ensure that rental contracts and invoices clearly mention the SAC code, GST rate in % and GST amount, so that customers can factor GST into their logistics costing and maintain proper documentation for credit claims wherever allowed.

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Practical Classification Guidance

Businesses that rent out commercial vehicles or other equipment should apply the SAC that best reflects their service, such as transport equipment rental under SAC 997311. Using the right SAC and GST rate in % helps customers claim eligible credit and keeps GST positions consistent across contracts and invoices.

Conclusion

Transport equipment rental services under SAC 997311 cover rental of trucks, trailers and similar vehicles with or without drivers. Rental charges for these services usually fall in the 18% GST slab with input tax credit for registered business customers who use the vehicles for taxable outward supplies. Fleet operators should classify their rental activity under SAC 997311, apply the appropriate GST rate in % and keep rental contracts, trip sheets and invoices properly organised.

Frequently Asked Questions

Clear answers to common queries about SAC Code 997311 and GST compliance.

What is SAC code 997311 in GST for transport equipment rental?

SAC 997311 covers rental or leasing of trucks, trailers and other transport equipment, with or without driver. It is used when logistics firms or fleet owners hire vehicles for moving goods, without transferring ownership. The service provider charges rental income that becomes taxable under GST.

Does SAC 997311 cover rental of trucks, trailers and transport equipment with or without driver?

Yes. Short term or long term hire of trucks, trailers, tankers, containers on wheels and similar road transport equipment, whether supplied with driver or on self drive basis, generally comes under SAC 997311. The key point is that it remains a rental service, not the sale of the vehicle.

What GST rate applies to services under SAC 997311?

Transport equipment rental under SAC 997311 is usually taxed at 18%. Concessional or special rates may apply in limited notified cases, so providers should always check current GST notifications. GST is calculated on the rental value charged for the vehicle or equipment for the agreed period.

Should logistics firms use SAC 997311 for fleet rental invoices?

Yes. Logistics and transport companies that rent out trucks, trailers or similar equipment to other businesses should typically use SAC 997311 on invoices. Correct SAC classification makes it easier for both sides to report GST properly and for customers to claim eligible input tax credit on rentals.

Can businesses claim ITC on GST paid for SAC 997311 rentals used for supply?

Registered businesses can generally claim ITC on GST paid for SAC 997311 rentals when the vehicles are used for making taxable supplies, such as transporting their own goods or providing transport services. ITC can be restricted where motor vehicle specific blocking rules apply, so conditions must be checked.

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Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.