Equipment Rental Services Under SAC Code 997329
General goods rental services cover leasing or renting of other movable goods that are not captured in the specific rental categories for machinery, furniture, textiles or entertainment items. Businesses use general goods rental to access different assets for a limited time against periodic rental payments. Under GST, these services are grouped under SAC 997329. This SAC code and its GST rate decide how GST is calculated on rental invoices for such other goods.
Equipment Rental Services GST Rate for SAC Code 997329
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 shows the latest standard GST rate for SAC code 997329 covering general goods rental services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997329 | Leasing or rental services concerning other goods | 18% with ITC | 18% with ITC | Residual leasing of goods is shown at 18% in multiple SAC-wise rate lookups. The rationalisation mainly removed 12% and 28% slabs; no alternate 5% entry has been created for this generic leasing bucket, so 18% stays as the typical rate. |
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 are the major related six-digit SAC codes under parent 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 997329 is meant for general goods rental services, covering other rental items that do not fit into specific machinery, furniture or textile categories. Such services normally attract 18% GST with input tax credit for eligible business customers. By using SAC 997329 consistently and applying the proper GST rate in %, service providers can keep diverse rental arrangements tax compliant and transparent.
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 997329 in GST for equipment rental?
SAC 997329 is a general code for rental of various goods and equipment not covered under more specific rental SAC codes. It is used when a provider rents different types of items on hire that do not clearly fall in specialised categories like transport, office or agricultural equipment.
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Does SAC 997329 cover rental of various goods and equipment not classified elsewhere?
Yes. If a rental business provides mixed equipment like display stands, exhibition accessories or uncommon machines that do not match other rental codes, SAC 997329 can be used. The essential feature is that the transaction remains a rental or lease of movable goods without transfer of ownership.
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What GST rate applies to general equipment rental under SAC 997329?
General equipment rental under SAC 997329 is normally taxed at 18%. GST is levied on the rental charges and any linked service fees. As this is a residual category, providers should still check whether any special notifications or exemptions apply to the specific goods being rented.
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When should a provider choose SAC 997329 over more specific rental SAC codes?
A provider should choose SAC 997329 when the equipment clearly does not belong to another defined rental code. If it fits better in a targeted code like computer rental or construction equipment rental, that specific SAC should be preferred. SAC 997329 acts as a fall back option for others.
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Can businesses claim ITC on GST paid for SAC 997329 rentals?
Businesses can usually claim ITC on GST paid for SAC 997329 rentals if the hired equipment supports their taxable outputs. ITC is not allowed for equipment used for exempt supplies or personal purposes. Correct invoices and clear linkage with business activities are important for sustaining ITC claims.