9973 Leasing or rental services with or without operator
Heading 9973 of the SAC classification covers leasing or rental services with or without operator. Services under it are taxed at 18%.
- Residual rate18%
- Service codes24
- Schedule entries4
Leasing or renting machinery, equipment and goods without an operator, and licensing intellectual property such as software, trademarks, franchises, mineral rights and spectrum. Where goods are leased, the rate normally tracks the rate on the goods themselves.
Is this the right heading for your service?Confirm the code and the rate with an advisor, freeGST rate for SAC 9973
The rate schedule is written against the heading, so these entries govern every service code under 9973. The entry that applies is the one whose description actually matches the supply.
- Nil
- 1.5%
- 5%
- 7.5%
- 12%
- 18% applies here
- 40%
Within a state: 9% CGST + 9% SGST or UTGST
Between states: 18% IGST
| Entry | What it covers | GST rate | CGST + SGST | Input tax credit |
|---|---|---|---|---|
| (i) | Temporary or permanent transfer, or permitting the use or enjoyment, of intellectual property rights in respect of information technology software. | 18% | 9% + 9% | Credit available |
| (ii) | Transfer of the right to use goods for any purpose, whether or not for a specified period. The rate is the same as the rate of GST on a supply of the like goods involving transfer of title. | Rate of the goods | As on the goods | Follows the goods |
| (iii) | Leasing or renting of goods. The rate is the same as the rate of GST on a supply of the like goods involving transfer of title. | Rate of the goods | As on the goods | Follows the goods |
| (iv) Residual | Leasing or rental services without an operator, other than the above. | 18% | 9% + 9% | Credit available |
More than one entry can apply here. The one that governs is the entry whose description actually matches the supply; where none does, the residual entry sets the rate.
Rates shown here are as published in GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) and are reproduced for reference. The GST Council revises rates through notifications, including the rate rationalisation effective 22.09.2025 that withdrew the 12% and 28% slabs for most services and introduced a 40% rate for a short list of them. Always verify the current rate and the conditions attached to it on the CBIC GST rates page or the CBIC tax information portal before invoicing or filing. Rates exclude any applicable cess. IncorpX provides assistance for GST registration and return filing if you need help.
Exempt supplies under 9973
Where an exemption applies it beats the rate schedule, so check these before reading a rate off the table above.
Some supplies under this heading carry no GST at all. An exemption removes the charge rather than setting a rate, so it overrides the schedule where it applies.
- Services by way of a right to admission to specified events, and licensing services where the underlying supply is itself exempt. Notification 12/2017-CT(R)
Source: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate). Exemptions carry conditions and definitions of their own, so read the notification entry before relying on one.
Reverse charge under 9973
On these supplies the recipient pays the GST. The supplier's invoice carries no tax, which is exactly why the mistake is so easy to make in both directions.
On these supplies the recipient pays the GST, not the supplier. The supplier issues an invoice without charging tax and notes that tax is payable under reverse charge; the recipient pays it in cash and claims credit separately if eligible.
Transfer or permitting the use or enjoyment of a copyright relating to original literary, dramatic, musical or artistic works.
- Supplier
- An author, music composer, photographer, artist or similar person
- Pays the tax
- A publisher, music company, producer or similar person
Source: Services taxable under reverse charge, Notification 13/2017-Central Tax (Rate) as amended. Separately from the entries above, any service bought from a supplier outside India is taxable under reverse charge in the recipient's hands, whatever code it carries. Reverse charge entries are amended often, so confirm the current position before you raise or accept an invoice.
24 service codes under 9973
Grouped the way the classification groups them. Open the group that matches your kind of service, then pick the code whose official description covers what you supply.
9973 1Leasing or rental services concerning machinery and equipment with or without operator7
9973 2Leasing or rental services concerning other goods8
9973 3Licensing services for the right to use intellectual property and similar products9
Where SAC 9973 is used
The same code, at different digit lengths, runs through your invoices, returns and registration.
Rule 46 requires the SAC code on the invoice for every service line, next to its description and value.
Get assistanceThe HSN/SAC summary table of GSTR-1 reports each code with its taxable value and tax: 4 digits up to Rs. 5 crore aggregate turnover, 6 digits above it.
Get assistanceThe services you supply are described with SAC codes when the registration application is prepared for the GST portal.
Get assistanceThe e-invoice schema validates the SAC field before the IRP returns an IRN, so a wrong code fails at generation rather than at assessment.
Get assistance- Classification: Scheme of Classification of Services, Annexure to Notification 11/2017-Central Tax (Rate), Central Board of Indirect Taxes and Customs (cbic-gst.gov.in).
- Rates: GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) (CBIC rate finder).
- Exemptions: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate).
- Reverse charge: Services taxable under reverse charge, Notification 13/2017-Central Tax (Rate) as amended.
- Current position: GST Council notifications published on the CBIC tax information portal.
This directory reproduces government classifications and rate entries for reference. The official gazette and CBIC notifications remain the authoritative sources. IncorpX provides assistance for registrations and filings that use these codes and does not issue the classification or the rates itself.
Get the SAC code and GST rate right the first time
The wrong code can mean the wrong rate, a mismatched GSTR-1 summary or an e-invoice that fails at the portal. Tell us what you supply and an advisor will help you confirm the classification, the rate and the credit position, then assist with the filings that use them.
- Code and rate checked against the notification text, not a guess
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The invoicing and return rules that decide how this code is actually used.
SAC 9973 questions
What does SAC heading 9973 cover?
Heading 9973 of the SAC classification covers leasing or rental services with or without operator. Services under it are taxed at 18%.
What is the GST rate for heading 9973?
Services under heading 9973 are taxed at 18%. GST rates change through Council notifications, so verify the current rate on the CBIC portal before invoicing or filing.
Are any services under heading 9973 exempt from GST?
Yes. 1 exempt entry touches this heading, including services by way of a right to admission to specified events, and licensing services where the underlying supply is itself exempt. An exemption removes the charge rather than setting a rate, so where it applies it overrides the rate schedule.
Does reverse charge apply to services under heading 9973?
Yes, for one notified category. Where reverse charge applies the supplier issues an invoice without charging GST and the recipient pays the tax directly and claims credit separately if eligible. The exact categories are listed on this page.
How many digits of SAC 9973 do I report?
Report all 4 digits of 9973 on invoices and in the GSTR-1 summary if your aggregate turnover is up to Rs. 5 crore, and the full 6-digit code above that. Pick the 6-digit code from the list on this page.
Nebin Binoy 
