Clothing Rental Services Under SAC Code 997326
Clothing rental services relate to the hire of textiles, garments and footwear such as uniforms, workwear, ceremonial dresses and costumes for limited periods. Many businesses and individuals use textile and clothing rental to manage events, seasonal staff and special occasions without heavy upfront purchase. Under GST, these services are classified under SAC 997326. This SAC code and its GST rate govern how GST is applied on clothing and footwear rental bills.
Clothing Rental Services GST Rate for SAC Code 997326
Under GST, leasing, rental and licensing services are treated as supply of services even when the underlying item is a movable good or an intangible like software. The taxable value normally includes base rental or licence fees, recurring usage charges and any service components that form part of the agreement price.
After the September 2025 GST slab revision, most taxable rental and licensing services that do not enjoy any special exemption or concessional entry are placed in the 18% slab with input tax credit for eligible registered recipients. Service providers should still track the latest notifications to confirm if any specific relief applies to their sector.
The table below sets out the current standard GST rate for SAC code 997326 in respect of clothing and footwear rental services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997326 | Leasing or rental services concerning textiles, clothing and footwear. | 18% with ITC | 18% with ITC | Recent leasing-services matrices list this SAC at 18% with ITC. Some guidance notes allow “same rate as like goods” for specific transfer-of-right transactions, but typical commercial rentals are treated at 18%, unchanged by GST 2.0. |
In most practical cases these services are taxed at 18%, and eligible registered business customers can claim input tax credit when the service is used for making taxable outward supplies. Service providers should apply the correct GST rate in % on the invoice value, mention the SAC code clearly and follow the same treatment in their GST records so that compliance stays smooth for both sides.
Explore Other SAC Codes Under 9973
All these SAC codes sit under the broader leasing, rental and licensing services heading 9973, which covers temporary use of goods and intellectual property against periodic charges. Each six digit SAC within this heading focuses on a specific type of rental or licensing service so that GST classification remains clear and consistent.
Below is a list of related six-digit SAC codes under 9973.
Service providers should map their main offering to the closest SAC code, whether they rent household linen, clothing, tools, other goods or provide software and database access. Using the correct six digit SAC and GST rate in % makes billing transparent, supports proper input tax credit for customers and reduces the chance of classification disputes during GST checks.
Conclusion
SAC 997326 covers clothing rental services including textiles, garments and footwear rented for business or personal use. Rental charges under this SAC typically fall in the 18% GST slab, and registered customers can often claim input tax credit where they meet the conditions. Using SAC 997326 properly and showing the GST rate in % clearly on invoices makes uniform and clothing rental more straightforward from a GST point of view.
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 997326 in GST for clothing rental?
SAC 997326 applies to rental of garments, costumes, footwear and similar wearable items. It covers services where customers temporarily hire outfits instead of buying them. Common examples are bridal wear rentals, fashion rentals, costume hire for films, stage shows, photoshoots and themed events.
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Does SAC 997326 cover rental of garments, costumes and footwear?
Yes. When a store or online platform rents lehengas, suits, gowns, costumes or shoes for a limited time, those services generally fall under SAC 997326. The owner keeps the stock and charges a rental fee, sometimes along with a security deposit and cleaning charges.
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What GST rate applies to clothing rental services under SAC 997326?
Clothing and costume rental under SAC 997326 is normally taxed at 18%. GST applies on the rental fee plus any additional service charges like fitting, cleaning or late fees. Service providers should clearly show GST on invoices so that eligible business customers can evaluate input tax credit correctly.
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Are bridal wear and costume rentals billed using SAC 997326?
Yes. Bridal outfits, groom wear and party costumes given on hire for weddings, shoots or stage performances are generally billed with SAC 997326. The same applies for corporate costume events or film production wardrobe rentals, unless contracts specifically classify them under a broader production or event management package.
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Can businesses claim ITC on GST paid for SAC 997326 when used for events or shoots?
Businesses may claim ITC on GST paid for SAC 997326 when rentals are used for marketing events, film shoots, advertisements or other taxable business activities. If garments are used for personal celebrations of owners or staff, ITC will not be allowed. Clear documentation of business purpose is important.