Computer Rental Services Under SAC Code 997315
Computer rental services focus on providing desktops, laptops and servers on rent for short or long term use. Businesses use computer rental services, laptop rental and desktop leasing to ramp up IT capacity for projects, training or events without heavy capital expenditure. These services often include basic support, installation and timely replacement in case of hardware issues. Under GST, such computer rental services are covered under SAC 997315. This SAC code and its GST rate decide how GST is calculated on computer hire charges and related IT service fees.
Computer Rental Services GST Rate for SAC Code 997315
Leasing and rental services under group 9973 are treated as supply of services under GST, even when the underlying item is a movable good. The taxable value usually includes the base rental charge, operator or driver fees where machines are supplied with manpower and any maintenance or handling fees that form part of the contract. Refundable security deposits and pure reimbursements of government levies can be kept outside the taxable value only when the conditions given in GST law are fully met.
After the September 2025 GST rate changes, most taxable leasing and rental services that are not covered by a special concessional entry are generally placed in the 18% slab with input tax credit for eligible registered business customers. Service providers should still check the latest notifications and circulars, as certain government schemes or specified sectors may enjoy different treatment for particular types of rental contracts.
The table below explains the prevailing standard GST rate for SAC code 997315 for computer rental services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
Once the correct GST rate is identified, rental providers should apply that rate in % on the taxable rental value, mention the SAC code clearly on invoices and keep their GST positions consistent across contracts and returns so that customers can plan cash flow and input tax credit smoothly.
Explore Other SAC Codes Under 9973
All these SAC codes fall under the broader leasing and rental services group 9973, which covers rental of machinery, equipment and other goods with or without operator. Each six-digit SAC within this group points to a specific type of rental service so that GST classification and reporting remain clear and structured.
Below are the major related six-digit SAC codes under parent 9973.
Service providers should select the SAC that matches the main equipment being rented, whether it is agricultural machinery, construction equipment, office machines, computers or telecom and network gear. Using the correct six digit SAC and GST rate in % makes billing more transparent, supports proper input tax credit for customers and reduces the risk of disputes during GST reviews.
Conclusion
SAC 997315 covers computer rental services including desktops, laptops and servers hired for business use. Such rentals are typically taxed at 18% under GST, and registered customers can generally claim input tax credit when systems are used for taxable activities. Using SAC 997315 consistently and charging the correct GST rate in % makes it simpler for both IT rental providers and clients to handle GST obligations.
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.
Frequently Asked Questions
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What is SAC code 997315 in GST for computer rental?
SAC 997315 covers rental and leasing of computer hardware such as desktops, laptops, servers and related IT equipment. It is used when companies or event organisers hire computers for offices, projects, training programmes or short term events, rather than purchasing devices outright.
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Does SAC 997315 cover rental of desktops, laptops and related IT equipment?
Yes. Hiring desktops, laptops, tablets, servers, network switches and related hardware is generally classified under SAC 997315. The vendor retains ownership and charges periodical rent. Rentals may include basic support or installation, but the primary nature of supply remains equipment rental rather than full IT managed services.
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What GST rate applies to computer rental services under SAC 997315?
Computer rental services classified under SAC 997315 are normally taxed at 18%. GST is charged on the rental amount for the equipment and any associated service charges. If the contract also bundles software or licences, the supplier should carefully decide whether it is a mixed or composite supply.
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Are short-term event and office IT rentals billed using SAC 997315?
Yes. Temporary computer setups for exhibitions, training sessions or project offices are usually invoiced with SAC 997315. This helps show that the supplier is providing hardware on hire. Additional services like on site support might attract the same rate but can still be disclosed separately on invoices.
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Can companies claim ITC on GST paid for SAC 997315 rentals?
Registered companies can generally claim ITC on GST paid for SAC 997315 rentals, as computers are standard tools for business operations. ITC may be restricted only where the underlying activity itself is exempt or used for personal consumption. Proper documentation and linkage to taxable business activities are important.