SAC Code for Laptop Rental: 997315 and the 18% GST Rate

Last updated: 2026-09-26

What is the SAC code for laptop rental?

SAC 997315 — "leasing or rental services concerning computers with or without operator" — taxed at 18% GST. Renting a laptop is a supply of *services*, so it carries a SAC code, not an HSN code. HSN 8471 applies when you *buy* a laptop, because that is a supply of goods.

That single distinction is what most of the confusion around this query comes down to.

Is it SAC 997314 or 997315?

997315. SAC 997314 covers office machinery and equipment rental but explicitly excludes computers, which is why 997315 exists as a separate entry. Using 997314 on a laptop rental invoice is a classification error that can block your customer's input tax credit when GSTR-2B reconciliation flags the mismatch.

Should the invoice show CGST+SGST or IGST?

It depends on the place of supply, which for a service is the location of the registered recipient — not where the laptops physically sit.

A Bengaluru-registered company renting laptops for its Pune office still gets CGST+SGST, because the recipient's registration is in Karnataka.

Can a company claim input tax credit on rented laptops?

Yes, in full, for a GST-registered business on the regular scheme using the laptops for business purposes. Section 17(5) blocks credit on motor vehicles, vessels and aircraft — there is no equivalent block on IT equipment rental.

So the 18% is a cash-flow item, not a cost. In the illustrative invoice below, a ₹2,50,000 monthly rental attracts ₹45,000 GST which the customer reclaims, making the real cost ₹2,50,000.

Two conditions matter: the supplier must actually file GSTR-3B on time, or the credit does not appear in your GSTR-2B; and a composition-scheme dealer cannot claim credit at all.

What does a correct laptop rental invoice look like?

The rate in this specimen is an illustrative example, not a Techvity rate.

The invoice must also carry both GSTINs, the place of supply, and — because rental is a continuous supply of service — an invoice date consistent with the payment schedule in the contract.

Why does the payment schedule affect GST timing?

Rental is a continuous supply of service under Section 2(33), since it runs beyond three months with periodic payments. Under Section 31(5), if the due date is ascertainable from the contract, the invoice must be raised on or before that date — whether or not payment has been received.

That means the payment clause you write into the rental agreement fixes your GST liability date. "Payable quarterly in advance on 1 April" makes GST due on 1 April even if the customer pays late.

General guidance, not tax advice. Confirm classification and credit eligibility with your chartered accountant.