Trademark Licensing Services Under SAC Code 997336
Trademark Licensing services involve granting limited rights to use or exploit intellectual property instead of transferring full ownership. In day to day business, companies pay licence fees or royalties for these rights so that they can use existing content or knowledge without creating it from scratch.
For SAC 997336, this mainly covers licensing rights for trademarks, branding, and franchise business operations. and is often linked to related activities such as brand licensing
trademark licensing.
Under GST, these supplies are reported using SAC 997336. Using the right SAC code and rate helps service providers raise clear tax invoices and helps clients understand how GST is being charged on the licence fee.
Trademark Licensing Services GST Rate for SAC Code 997336
From a GST point of view, Trademark licensing fees are treated as supply of services. The taxable value usually includes upfront licence fees, recurring royalties, minimum guarantee amounts, renewal charges and any related service or support fees that form part of the same agreement.
After the September 2025 GST revision, most licensing and intellectual property related services that do not have any special notification continue to fall under the standard 18% slab. Registered business recipients can generally claim input tax credit when these licensed rights are used for making taxable supplies, subject to normal ITC conditions.
The table below explains the current standard GST rate for SAC code 997336.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997336 | Licensing services for the right to use trademarks and franchises | 12% with ITC or 18% with ITC | 18% with ITC | Franchise and brand licensing under this code has been widely treated at 18% GST with ITC, even though earlier notifications mentioned 12% for some IPR transfers and a limited nil concession for certain sports events. After the removal of the 12% slab, the operative rate settles at 18% with ITC for typical franchise / trademark licensing. |
In practice, businesses that provide Trademark licensing should apply 18% GST on the taxable value, mention the correct SAC code on invoices and keep treatment consistent in their GST records so that licence income and related input tax credit remain easy to track.
Explore Other SAC Codes Under 9973
SAC 997336 sits inside the wider heading 9973, which covers leasing, rental and licensing services for different types of intellectual property and similar rights. Each six digit SAC under this heading points to a specific type of licensing or rental arrangement so that GST classification stays clear.
The list below highlights key six-digit SAC codes under 9973.
When choosing a code from the 9973 group, service providers should pick the SAC that best matches the main right being licensed, whether it is Trademark licensing, artwork, publications, technology or trademarks. Using the correct six digit SAC and GST rate in % helps avoid disputes and keeps invoicing and input tax credit planning straightforward for both parties.
Conclusion
SAC 997336 is used for Trademark licensing where the service provider grants defined rights in return for a licence fee or royalty. These services are generally taxed at 18% under GST, with input tax credit normally available to eligible registered recipients when the licensed rights support their taxable business activities. By classifying such income under SAC 997336 and applying the correct GST rate in %, businesses can keep their licensing agreements, invoices and GST compliance neat and easy to explain during reviews.
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 997336 in GST for telecom engineering services?
SAC 997336 covers engineering services for telecom networks and broadcasting infrastructure. It includes planning, design and technical support for towers, antenna systems, transmission links and related equipment. These services help telecom operators and broadcasters roll out, upgrade or optimise their communication networks and coverage.
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Does SAC 997336 cover engineering for telecom towers and broadcasting infrastructure?
Yes. Design of tower foundations, antenna placement, RF planning, coverage maps and capacity planning for telecom or broadcasting networks normally fall under SAC 997336. It also covers technical studies needed before network rollout or expansion, including site surveys, structural checks and compliance with local technical standards.
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What GST rate applies to telecom engineering consultancy under SAC 997336?
Telecom engineering consultancy under SAC 997336 is generally taxed at 18%. GST is charged on consulting fees, project retainers and technical reports. Businesses should review the latest GST notifications for any special schemes but in most normal cases standard service rate applies for such professional services.
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Should network rollout and tower design projects be billed using SAC 997336?
Yes. Engineering firms involved in designing tower layouts, link paths, small cell networks or broadcast systems should use SAC 997336 on their invoices. This ensures correct classification for GST returns and helps telecom operators clearly separate pure engineering consultancy from construction, equipment supply or installation contracts. -
Can operators claim ITC on GST paid for SAC 997336 services?
Registered telecom and broadcast operators can usually claim ITC on GST paid for SAC 997336 services, as these are directly linked to providing taxable communication services. If part of their output is exempt, proportionate ITC reversal may apply. Proper documentation tying consultancy work to specific projects is important.