SAC 997315 for Laptop Rental in India: Complete GST Guide for B2B
Published by Techvity IT Solutions
SAC 997315 covers leasing or rental of computers, including laptops, with or without an operator. Under CBIC Notification 11/2017-CTR, it attracts 18% GST (9% CGST + 9% SGST intra-state, or 18% IGST inter-state). Place of supply for B2B is the recipient's registered state under Section 12(2)(a) of the IGST Act, and ITC is fully claimable monthly for regular-scheme taxpayers using the laptops in furtherance of business.
Why this code matters in 2026
Misclassification is one of the commonest problems on B2B rental invoices. Vendors who do not write 997315, or who default to a generic 9973 or the wrong six-digit code, put the recipient's input tax credit at risk during ASMT-10 scrutiny. Almost every employee in corporate India works on a laptop, so this one code touches a large share of business invoices.
For procurement, finance and tax teams, the practical question is: what does a clean, audit-defensible 997315 invoice look like, what rate applies to your scenario, and how do you handle place of supply across states? The rest of this guide answers each.
What does HSN/SAC 997315 actually cover?
Heading 9973 in the GST scheme of classification covers leasing or rental services. The granular six-digit code 997315 covers leasing or rental of computers, with or without an operator. For B2B procurement teams, this is the code for:
- Windows laptops and notebooks (Dell, HP, Lenovo, ThinkPads)
- MacBooks and Mac mini units
- Workstation-class laptops with discrete GPUs
- Tablets and 2-in-1 convertibles deployed as work devices
- Bundled accessory rental (docks, monitors, keyboards) when invoiced as a composite supply with the laptop
It does not cover printers, photocopiers or projectors rented on their own (office machinery other than computers is 997314) or networking equipment rented on its own (telecommunications equipment is 997316). A reputable vendor will spell out the SAC line by line on the invoice; confirm edge cases with your CA.
The 18% GST rate by scenario
| Scenario | CGST | SGST | IGST | Total |
|---|---|---|---|---|
| Intra-state (e.g. Karnataka to Karnataka) | 9% | 9% | - | 18% |
| Inter-state (e.g. Karnataka to Maharashtra) | - | - | 18% | 18% |
| Export of services (SEZ / outside India) | - | - | 0% (zero-rated, with LUT) | 0% |
Source: CBIC Notification 11/2017-CTR (Heading 9973); Section 16 IGST Act for zero-rated SEZ supplies.
Place of supply: which state's tax authority is paid?
Section 12 of the IGST Act, 2017 governs place of supply for services where both parties are in India. For laptop rental, section 12(2)(a) applies when the recipient is GST-registered: the place of supply is the recipient's location as recorded on their GSTIN.
Practical example: if Techvity (GSTIN 29DETPA8734P1ZH) supplies 50 laptops to a recipient in Maharashtra (GSTIN 27AABCM...), Techvity issues an IGST invoice at 18%. If the same fleet is supplied to a Bangalore office (GSTIN 29AABCK...), CGST 9% + SGST 9% are charged. For unregistered recipients, section 12(2)(b) applies and the place of supply is the address on record - default fallback is the supplier's location if no address is given.
Input tax credit: what makes 997315 ITC-eligible?
Section 16 of the CGST Act sets four conditions for ITC: (1) valid tax invoice in your name, (2) actual receipt of the service, (3) supplier has paid GST and filed GSTR-1/3B, and (4) you have filed your own GSTR-3B. Section 17(5) lists blocked credits - laptop rental is not in that list, provided it is used for business and not personal/employee consumption only.
ClearTax, Tax Guru and the GST Council's own guidance confirm that 997315 invoices feed the recipient's electronic credit ledger month after month. For a 50-laptop fleet at, say, an indicative monthly rental value (request a quote for fleet-specific figures), the recoverable GST in a year is material - effectively reducing the post-tax cost by 18%.
Sample compliant 997315 invoice elements
Tax invoice checklist
- Supplier name, address, GSTIN and state code
- Invoice number (sequential, financial-year-unique) and date
- Recipient name, billing address, GSTIN and state code
- HSN/SAC: 997315
- Description: 'Rental of laptops/notebooks - leasing of computers'
- Quantity, unit, rental period (e.g. 25 units, monthly, April 2026)
- Taxable value (excluding GST)
- CGST 9% + SGST 9% OR IGST 18% (with absolute amounts)
- Place of supply (recipient's state)
- Total invoice value in figures and words
- Supplier authorised signatory and digital signature where applicable
- Annexure: device serial numbers for traceability
Source: Rule 46, CGST Rules 2017; CBIC GST Invoice Manual.
Common reconciliation issues to watch
- Wrong SAC on invoice - vendors using 9973 (parent code) instead of 997315 fail GSTR-9 HSN-summary checks.
- State-code mismatch - recipient billing state on the invoice must match the GSTIN's state code.
- Missing place of supply - mandatory for inter-state invoices; absence triggers ASMT-10 in scrutiny.
- Composite vs mixed supply - if the bundle includes services taxed at different rates without a clear principal supply, the highest rate applies to the entire invoice.
- Late vendor filing - if the supplier does not file GSTR-1, the invoice will not appear in the recipient's GSTR-2B and ITC is provisional only.
How Techvity issues 997315 invoices
Every Techvity rental invoice carries our GSTIN (29DETPA8734P1ZH), SAC 997315, and 18% GST split as CGST/SGST or IGST according to the recipient's GSTIN, with the place of supply stated. Ask for a sample invoice with your quote.
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Frequently asked questions
What is HSN code 997315 used for?
SAC 997315 covers leasing or rental services concerning computers, including laptops, with or without an operator. CBIC Notification No. 11/2017-Central Tax (Rate), as amended, places this service under heading 9973 with an 18% GST rate. It is the correct code for B2B laptop rental, MacBook rental, server-grade workstation rental and most office IT leasing in India.
What is the GST rate on laptop rental in India?
18% (9% CGST + 9% SGST for intra-state, or 18% IGST for inter-state). The rate has been stable since GST rollout in July 2017 and is set under CBIC Notification 11/2017-CTR, Schedule, Heading 9973, item (vi). There is no concessional or composition rate for office equipment leasing - all GST-registered B2B rentals are charged at 18%.
Is HSN code 997315 the same as SAC 997315?
Yes - in the GST regime, services use SAC (Services Accounting Code) which sits inside the broader HSN structure. The number 997315 is identical whether labelled HSN or SAC. CBIC and the GST portal accept both labels on tax invoices for laptop rental services.
Can a GST-registered business claim ITC on rented laptops?
Yes, if the rental is used in the course or furtherance of business and the supplier is on the regular GST scheme (not composition). The 18% GST charged on the monthly rental invoice flows to your electronic credit ledger and can be set off against output tax. Composition-scheme dealers cannot claim ITC. Refer Section 16 of the CGST Act and Section 17(5) for blocked credits.
How does place of supply work for laptop rental in India?
For services connected to immovable goods or where physical delivery is involved, the place of supply for laptop rental between two GST-registered businesses is generally the registered location of the recipient under Section 12(2)(a) of the IGST Act. If the supplier is in Karnataka and the recipient's GSTIN is in Maharashtra, IGST applies at 18%; if both are in Karnataka, CGST 9% + SGST 9% applies.
What must a compliant tax invoice for laptop rental contain?
Per CGST Rules 46, the invoice must include: supplier name/address/GSTIN, invoice number and date, recipient name/address/GSTIN, HSN/SAC 997315, description of service (e.g. 'Monthly rental - 25 Dell Latitude 5440 laptops'), taxable value, GST rate (18%), CGST/SGST or IGST amounts, place of supply, and supplier signature. Include serial numbers of devices in an annexure for asset-traceability and audit.
Is laptop rental treated differently from outright laptop purchase under GST?
Yes. Outright purchase falls under HSN 8471 (automatic data processing machines) at 18% GST and ITC is recovered in one shot. Rental falls under SAC 997315 at 18% GST and ITC is recovered monthly with each invoice. Both are eligible for full ITC for regular-scheme registered taxpayers using the asset for business.
Does 997315 cover bundled services like AMC, MDM and replacement laptops?
If bundled with rental as a single composite supply where rental is the principal supply, the entire invoice is taxed at 18% under SAC 997315. If AMC is contracted separately for owned assets, it is classified under SAC 998713 (maintenance and repair services of computers and peripheral equipment) - also 18% but separately reported. Document the principal-supply intent in your contract to avoid GSTR-9 reconciliation issues.
What if my vendor uses a different HSN/SAC code on the invoice?
Push back. Misclassification can trigger ITC denial during a GST audit. Common errors include using SAC 998871 (manufacturing services) or 996331 (food/beverage). The correct code for renting laptops and other computers is 997315. Ask the vendor to correct the invoice or issue a credit note plus revised invoice within the same financial year.
Where can I find the official notification and CBIC source?
The primary source is CBIC Notification No. 11/2017-Central Tax (Rate) dated 28 June 2017, available on cbic-gst.gov.in. The amended consolidated version, with Heading 9973 and 18% rate confirmed, is also published on the GST Council site. Cross-reference with the GST tariff schedule maintained on gst.gov.in for the live rate.
Related Techvity resources
- GST on Laptop Rental in India: 18%, ITC, Compliance
- Lease vs Buy Laptops India: 3-Year TCO
- Laptop Rent vs Buy Comprehensive Guide (2026)
- What is the GST rate on laptop rental?
- SAC 997315 explained
- Enterprise IT solutions
Need to talk to a human? Call us on +91 80733 80811. Sources cited: CBIC Notification 11/2017-CTR; Section 12 IGST Act 2017; Section 16-17 CGST Act 2017; Rule 46 CGST Rules; ClearTax GST commentary.