Sports Equipment Rental Services Under SAC Code 997324
Sports equipment rental services deal with giving sports, fitness and leisure equipment on hire for short term use. Individuals, clubs and event organisers use sports equipment rental and party equipment hire for tournaments, corporate events and seasonal activities. Items can include bats, nets, fitness gear and game setups. Under GST, these rental services are classified under SAC 997324. This SAC code and its GST rate decide how GST is applied on sports and recreation equipment rental bills.
Sports Equipment Rental Services GST Rate for SAC Code 997324
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 explains the current standard GST rate for SAC code 997324 for sports and recreation equipment rental services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
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.
The list below highlights key six-digit SAC codes under 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 997324 is meant for sports equipment rental services including sports, fitness and party equipment given on hire. These services usually come under the 18% GST slab, and registered customers may claim input tax credit when the rentals are used for taxable business activities. By classifying services under SAC 997324, charging the correct GST rate in % and keeping proper documentation, service providers can support smooth GST compliance for recreation and sports related rentals.
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 997324 in GST for sports equipment rental?
SAC 997324 is used for rental of sports, recreation and party equipment. It covers short term hire of items like games gear, inflatables and event props. The owner keeps the equipment and charges rent for temporary use, without transferring ownership to the customer.
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Does SAC 997324 cover short term rental of sports and party equipment?
Yes. Hiring bats, nets, gym items, bouncy castles, party games or similar equipment for a few hours or days usually falls under SAC 997324. The service is treated as equipment rental, even if the provider also handles basic setup or collection from the customer location.
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What GST rate applies to sports equipment rental under SAC 997324?
Sports and party equipment rentals under SAC 997324 are generally taxed at 18%. GST is charged on the rental amount and any extra service charges like delivery or setup. Providers should always check current GST notifications in case any special exemption or concessional rate is notified.
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Should event planners use SAC 997324 when hiring sports gear?
Yes. Event planners or clubs that hire sports gear or party equipment and then re bill clients should use SAC 997324 on their own rental invoices. This makes classification clear for GST returns and helps business customers decide whether they can claim input tax credit on such expenses.
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Can businesses claim ITC on GST paid for SAC 997324 rentals?
Businesses can generally claim ITC on GST paid for SAC 997324 rentals when the equipment is used for a genuine business purpose, such as corporate events or customer engagement activities. ITC is not available for purely personal functions or where the outward activity itself is exempt from GST.