What is HSN code 997315 used for?
Last updated: 30 April 2026 · Published by Techvity IT Solutions
HSN code 997315 is used for 'leasing or rental services concerning computers, with or without operator' under India's GST framework. It applies to all corporate laptop rentals, server leasing, desktop rentals, and computer hardware rental services. The applicable GST rate is 18 percent, split as 9 percent CGST plus 9 percent SGST for intra-state supply or 18 percent IGST for inter-state. This code is the standard SAC for every corporate laptop rental invoice in India.
HSN 997315 is one of the cleanest service classifications in India's GST framework, with no ambiguity in scope or applicable rate. It sits under SAC chapter 99 (services), heading 9973 (leasing or rental services without operator), group 99731 (leasing or rental services concerning machinery and equipment without operator). The specific code 997315 covers computers and includes laptops, desktops, servers, and related computing hardware. Understanding this code matters because it determines the GST rate, the place of supply rules, and the input tax credit eligibility for any computer rental transaction.
HSN 997315: structure and scope
The SAC structure breaks down logically: chapter 99 (services), heading 9973 (leasing or rental services without operator), group 99731 (machinery and equipment leasing), code 997315 (computers specifically). The table below shows where 997315 sits relative to neighbouring codes for context.
| Code | Service Description | GST Rate |
|---|---|---|
| 997311 | Leasing or rental services concerning agricultural machinery | 18% |
| 997313 | Leasing or rental services concerning office machinery | 18% |
| 997315 | Leasing or rental services concerning computers | 18% |
| 997319 | Leasing or rental services concerning other machinery | 18% |
| 997329 | Leasing or rental services concerning other goods | Varies |
When to use HSN 997315 vs. HSN 8471
Two codes commonly come up in laptop transactions: HSN 997315 (rental service) and HSN 8471 (computers as goods). They are not interchangeable. Use HSN 997315 when the transaction is a rental, lease, or hire of laptops where ownership remains with the supplier - this is the standard B2B corporate rental scenario. Use HSN 8471 when the transaction is an outright sale of laptops where ownership transfers to the buyer - this applies to new laptop purchases, refurbished laptop sales, and end-of-tenure buyouts. Both attract 18 percent GST in most cases, but the underlying transaction type, accounting treatment, and ITC eligibility differ. A laptop rental contract with a buyback option will typically have monthly invoices under HSN 997315 and a final invoice under HSN 8471 if the buyback is exercised.
Compliance checks for HSN 997315 invoices
Run these four compliance checks on every laptop rental invoice. (1) HSN code: must read 997315, not 9973 or any neighbouring code. (2) Description: should clearly state 'leasing or rental services concerning computers' or similar; vague descriptions like 'IT services' obscure the classification. (3) GST rate: 18 percent split correctly between CGST/SGST or IGST based on place of supply. (4) Place of supply: determined by the recipient's GSTIN address; verify this matches your billing entity. Misclassification is a common audit issue - vendors sometimes use generic codes like 9973 or 998599 (other professional services) that obscure the rental nature of the transaction. This can create GST audit issues for both supplier and customer. Insist on the specific 997315 code in writing during MSA negotiation.
Bottom line
HSN 997315 is the unambiguous SAC code for laptop rental services in India, covering computers, laptops, desktops, and servers under leasing or rental arrangements. The applicable GST rate is 18 percent, recoverable as input tax credit by registered businesses. Confirm the code on every rental invoice, distinguish it from HSN 8471 for outright sales, and insist on the specific code in writing during MSA negotiation. Misclassification creates avoidable audit risk for both parties; correct classification simplifies GST compliance and ITC reconciliation.
Frequently asked questions
What is the GST rate for HSN 997315?
18 percent. This is the standard rate for leasing or rental services concerning computers in India, split as 9 percent CGST plus 9 percent SGST for intra-state supply or 18 percent IGST for inter-state. The rate has been stable since the 2017 GST rollout with no concessional alternative.
Is HSN 997315 the same as HSN 8471?
No. HSN 997315 is a service code for leasing or rental of computers; HSN 8471 is a goods code for computers themselves. Use 997315 for rental invoices where ownership stays with the supplier; use 8471 for outright purchase invoices where ownership transfers to the buyer.
Can I claim input tax credit on HSN 997315 invoices?
Yes, the full 18 percent GST is recoverable as input tax credit for registered businesses using the laptops for taxable output, subject to standard ITC conditions under sections 16-17 of the CGST Act. Reconcile against GSTR-2B monthly to ensure the supplier has filed GSTR-1 correctly.
Does HSN 997315 apply to laptop AMC contracts?
Generally no. Laptop AMC (annual maintenance contract) typically uses HSN 998713 (maintenance and repair services of computers and peripheral equipment) at 18 percent. The codes are distinct because the underlying service is repair/maintenance, not rental. Confirm the code on AMC invoices separately.
What if my vendor uses a different HSN code on the invoice?
Push back. Generic codes (9973, 998599) obscure the specific service classification and create audit risk. Insist on HSN 997315 for laptop rental invoices in writing during MSA negotiation. If the vendor refuses or cannot articulate why a different code applies, escalate to their compliance team or consider an alternative vendor.
Related questions
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.