Furniture Rental Services Under SAC Code 997323
Furniture rental services provide tables, chairs, beds, sofas and other items on hire for homes, offices and events. Many people and businesses choose furniture rental and home appliance rental to set up spaces quickly without a big upfront spend. These services often include delivery, installation and pickup after the rental period. Under GST, such furniture and appliance rental services fall under SAC 997323. This SAC code and its GST rate decide how GST is charged on furniture rental invoices.
Furniture Rental Services GST Rate for SAC Code 997323
Leasing and rental services under group 9973 are treated as supply of services under GST even when the item being rented is a movable good. The taxable value normally includes base rental charges, operator or handling fees where applicable and any other service amounts that are part of the contract. Refundable security deposits and pure reimbursements of government levies can be kept outside taxable value only when GST conditions are fully satisfied.
After the September 2025 GST changes, most taxable leasing and rental services that are not covered by a special concession generally fall in the 18% slab with input tax credit for eligible registered recipients. Service providers should still review the latest notifications and circulars in case any specific exemption or reduced rate has been notified for a particular category of rental service.
The table below shows the latest standard GST rate for SAC code 997323 for furniture and home appliance rental services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
In most practical cases these rental services are taxed at 18%, with input tax credit available to registered business customers when they use the rented assets for taxable supplies. Service providers should apply the correct GST rate in % on the rental value, mention the SAC code clearly and keep their tax treatment consistent across invoices and returns.
Explore Other SAC Codes Under 9973
All these SAC codes form part of the wider leasing and rental services group 9973, which covers rental of machinery, equipment and other goods with or without operator. Each six digit SAC under this group represents a specific type of rental service so that classification and GST reporting stay organised.
Below are the major related six-digit SAC codes under parent 9973.
Service providers should identify the SAC that best matches the main asset being rented, such as machinery, audio visual systems, furniture or sports equipment. Using the correct six digit SAC and the right GST rate in % makes invoices easier to understand, supports proper input tax credit for customers and reduces the risk of classification disputes during GST reviews.
Conclusion
SAC 997323 covers furniture rental services and can also include related home appliance rental where items are given on hire for homes, offices or events. These rentals normally attract 18% GST with input tax credit for eligible registered users. Using SAC 997323 correctly and mentioning the GST rate in % clearly on invoices helps both service providers and customers manage long term or short term furniture rental without confusion in GST compliance.
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 does SAC code 997323 cover in GST?
SAC 997323 covers rental services for household and office furniture and appliances. This includes sofas, tables, workstations, refrigerators, washing machines and other home or office appliances supplied on hire. It is widely used by furniture rental companies and staging services for both homes and commercial spaces.
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Does SAC 997323 include rental of household and office furniture and appliances?
Yes. Renting beds, wardrobes, office desks, chairs, refrigerators or air coolers for a fixed monthly fee generally falls under SAC 997323. The customer gets usage rights for the rental term, while ownership and maintenance responsibility usually remain with the rental company as per contract terms.
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What GST rate applies to furniture rental under SAC 997323?
Furniture and appliance rental under SAC 997323 is usually taxed at 18%. GST is charged on the rental value and any related charges such as delivery or installation. Some small service providers below the registration threshold may not charge GST, but then customers cannot claim ITC on those rentals.
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Should staging and office furniture hire companies use SAC 997323 on bills?
Yes. Companies that provide furniture for home staging, events or setting up temporary offices should normally use SAC 997323 on their invoices. This makes it clear that the service is rental of furniture and appliances, helping clients to account correctly for GST and evaluate ITC eligibility.
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Can businesses claim ITC on GST paid for SAC 997323 rentals used in operations?
Businesses can usually claim ITC on GST paid for SAC 997323 rentals when the furniture or appliances support taxable operations, such as furnishing offices, branches or showrooms. ITC is not available where items are used for personal benefit of employees or for activities that are fully exempt from GST.