HSN/SAC Code 997315 for Laptop Rental: GST Compliance Guide
SAC 997315 is the precise GST service code for renting laptops, desktops, monitors and other office machinery in India. It taxes at 18% (CBIC Notification 11/2017-CTR) and provides full input tax credit to GST-registered businesses on the regular scheme. It sits inside chapter heading 9973 (leasing without operator).
What does 997315 actually cover?
The CBIC's Scheme of Classification of Services (Annex to Notification 11/2017-CTR) describes 997315 as "Leasing or rental services concerning office machinery and equipment (except computers) with or without operator". In practice and per widespread trade usage backed by ClearTax's HSN/SAC finder, this code is used for laptop, desktop, monitor, projector and printer rental on B2B contracts. Some practitioners also use 997319 - leasing of other machinery and equipment - as a residual code; 997315 remains the most accepted default for office IT.
Scope quick-reference
| Service | In scope of 997315? |
|---|---|
| Laptop / notebook rental for offices | Yes |
| Desktop / workstation rental | Yes |
| Monitor, projector, printer rental | Yes |
| Server colocation or hosting | No (different SAC) |
| Software licensing without hardware | No (998434 / 997331) |
| Laptop sale (outright purchase) | No (HSN 8471, goods) |
| Managed laptop service with IT operator | Borderline - check if bundled with manpower |
9973 vs 997315: when to use which
Both are valid. The CBIC permits taxpayers to report at the 4-digit (9973) or 6-digit (997315) level depending on aggregate turnover. As of FY 2023-24, taxpayers with turnover above ₹5 crore must report at 6 digits in GSTR-1 and on e-invoices. Below that threshold, 4-digit reporting is acceptable.
- Use 997315 when you want maximum precision on the invoice and to align with e-invoicing 6-digit requirements.
- Use 9973 if you are reporting at chapter level (turnover under ₹5 crore) or in summary trial-balance extracts.
Filing and procurement notes
- On vendor master data, tag laptop-rental suppliers with SAC 997315 to keep your TDS u/s 194-I or 194-IB analysis clean.
- On GSTR-1 (B2B), report invoices under SAC 997315 with the 18% rate.
- On GSTR-3B, ensure ITC reconciles to GSTR-2B; rentals from non-compliant suppliers will be auto-blocked under Section 16(2)(c) CGST Act.
- On the e-invoice IRN, confirm SAC field 997315 and 18% rate are present before sending to the IRP portal.
"We standardised on 997315 across every laptop, monitor and projector contract two years ago. Audit queries on these line items dropped to zero." - anonymised AGM Finance, Bangalore listed company.
Frequently asked questions
What does SAC 997315 cover?
997315 is the granular Service Accounting Code for 'leasing or rental services concerning office machinery and equipment (except computers) with or without operator', and is widely used in India for laptop, desktop, monitor, projector and printer rental on B2B contracts. It sits inside chapter heading 9973 (leasing or rental services).
What is the GST rate on 997315?
18% GST under CBIC Notification 11/2017-Central Tax (Rate). The split is 9% CGST + 9% SGST for intra-state supply or 18% IGST for inter-state. The rate has not changed since the notification was issued in June 2017.
How is 997315 different from 9973?
9973 is the four-digit chapter heading 'Leasing or rental services without operator' covering all leasing categories. 997315 is the six-digit granular code specifically for office machinery and equipment leasing. For invoicing precision, finance and procurement teams cite the granular 997315; for high-level GSTR-1 reporting, 9973 is acceptable.
Should I cite 9973 or 997315 on the invoice?
Cite the granular 997315 wherever space permits - it is more precise and reduces audit queries. The CBIC's HSN/SAC reporting threshold (e-invoice and GSTR-1) typically requires 6-digit reporting for taxpayers with aggregate turnover above ₹5 crore, so 997315 is the safer default.
Is the rate different for short-term vs long-term rental?
No. Whether daily, weekly, monthly or multi-year, laptop rental under 997315 attracts a flat 18% GST. Tenure does not change the rate or the eligibility for input tax credit.
Sources: CBIC Notification 11/2017-Central Tax (Rate); Annex - Scheme of Classification of Services; Section 16-17 CGST Act 2017; ClearTax HSN/SAC finder.
Want a 997315-compliant rental contract?
Every Techvity invoice cites SAC 997315 with the correct 18% split, place-of-supply and PO reference. Talk to our enterprise team for a sample MSA and invoice.