What is the GST rate on laptop rental in India?
Last updated: 30 April 2026 · Published by Techvity IT Solutions
Laptop rental in India is taxed at 18 percent GST under HSN code 997315, which covers leasing or rental services concerning computers (with or without operator). The 18 percent is split as 9 percent CGST plus 9 percent SGST for intra-state transactions or 18 percent IGST for inter-state. Registered businesses can claim full input tax credit on the rental invoice, subject to the standard ITC conditions in the CGST Act.
Laptop rental is one of the cleanest GST categories in India because it sits squarely under the 'leasing or rental services' chapter rather than goods supply. The Central Board of Indirect Taxes and Customs (CBIC) classifies leasing or rental of computers under HSN 997315, taxed at 18 percent. This is consistent across all Indian states and applies whether you are renting one MacBook for a freelancer or 500 business laptops for a GCC. Understanding the GST treatment matters because (a) it changes your effective rental cost by 15 percent if you cannot claim ITC, (b) it determines whether your invoice is intra-state or inter-state, and (c) it ties into your TDS obligations under section 194-I or 194-Q depending on contract structure.
GST breakdown: HSN 997315 explained
HSN 997315 falls under SAC chapter 99, group 99731 (leasing or rental services without operator), and specifically covers leasing or rental of computers. The 18 percent rate is the standard rate for most leasing services in India and has been stable since the 2017 GST rollout. The table below shows the breakdown for a representative monthly invoice on a 100-laptop fleet at INR 1,000 per laptop per month (illustrative figures only - actual pricing is contract-specific).
| Component | Intra-State (Karnataka to Karnataka) | Inter-State (Karnataka to Maharashtra) |
|---|---|---|
| Taxable Value | INR 1,00,000 | INR 1,00,000 |
| CGST @ 9% | INR 9,000 | Not applicable |
| SGST @ 9% | INR 9,000 | Not applicable |
| IGST @ 18% | Not applicable | INR 18,000 |
| Total Invoice | INR 1,18,000 | INR 1,18,000 |
| ITC Available | INR 18,000 (subject to rules) | INR 18,000 (subject to rules) |
Input tax credit: when can you claim the 18 percent back?
Registered businesses using rented laptops for taxable output supplies can fully claim the 18 percent GST as input tax credit (ITC), under sections 16-17 of the CGST Act. Standard ITC conditions apply: (1) you must have a valid tax invoice, (2) the supplier must have filed GSTR-1 and the entry must reflect in your GSTR-2B, (3) you must have received the service, (4) you must pay the supplier within 180 days, and (5) the rented laptops must be used for business purposes related to taxable output. ITC is blocked or restricted in narrow cases - notably motor vehicles, food and beverages, and certain construction inputs - but ordinary office laptops do not fall under any blocked category. For startups still in the pre-revenue phase, ITC accumulates as a balance and can be set off once taxable output begins.
TDS, place of supply, and other compliance edge cases
Three GST-adjacent issues commonly trip up finance teams. First, TDS: rental of plant and machinery (which can include computer hardware) attracts TDS under section 194-I at 2 percent if the annual rental exceeds INR 2.4 lakh, calculated on the value excluding GST. Some contracts structure laptop rental as a service rather than rent of plant, in which case section 194-C or 194-J may apply at 2 percent or 10 percent respectively - get explicit clarity in your MSA. Second, place of supply: GST is charged based on the recipient's GSTIN address, which determines IGST vs. CGST/SGST. For multi-city deliveries on one invoice, the billing GSTIN governs the tax treatment. Third, reverse charge does not apply to standard laptop rental from a registered Indian supplier; you pay forward charge and claim ITC normally.
Bottom line
The GST rate on laptop rental in India is unambiguously 18 percent under HSN 997315. For registered businesses, this is fully recoverable as input tax credit, making the effective net rental cost identical to the pre-tax quote in most cases. The compliance work sits in three areas: ensuring the vendor invoice carries the correct HSN, validating the supplier's GSTR-1 filing each month, and confirming TDS applicability under the right section. Treat the GST treatment as a checklist item during MSA negotiation rather than a finance-team cleanup task at year-end.
Frequently asked questions
Is the GST on laptop rental 18 percent or 12 percent?
It is 18 percent. Some buyers confuse laptop rental with goods supply (where laptops as goods are also taxed at 18 percent under HSN 8471), but the rental service category 997315 has consistently sat at 18 percent since 2017 with no concessional rate.
Can I claim full GST input credit on laptop rental?
Yes, if your business is GST-registered and uses the laptops for taxable output, you can claim the full 18 percent as ITC. Standard conditions apply: valid invoice, supplier compliance reflected in your GSTR-2B, service receipt, and payment to the supplier within 180 days.
Does laptop rental attract TDS in India?
It depends on contract structure. If structured as rent of plant and machinery, TDS applies under section 194-I at 2 percent on value above INR 2.4 lakh per year (excluding GST). If structured as a pure service contract, sections 194-C or 194-J may apply. Confirm the section in your MSA.
Is GST charged on the security deposit for rental laptops?
No. A genuine refundable security deposit is not consideration for supply and does not attract GST. GST applies only on the monthly rental invoice. If the deposit is forfeited at end-of-tenure due to damage, the forfeited amount may then attract GST as it becomes consideration.
What HSN code should appear on a corporate laptop rental invoice?
HSN 997315 (leasing or rental services concerning computers, with or without operator). This code drives the 18 percent rate and is the standard for all corporate laptop rental invoices in India. Ask your vendor to confirm before signing the MSA.
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Need a tailored answer for your team?
Techvity IT Solutions advises Indian B2B teams on laptop rental, refurbished purchase, AMC, and IT lifecycle decisions. We will give you a written quote referencing HSN 997315 with 18% GST, an SLA matched to your operating environment, and a defined buyback or extension clause. Call our team in Bangalore or request a quote online.