GST Calculation on Bundled Furniture Setup Delivery in a Rental Invoice: A Comprehensive Guide
The Goods and Services Tax (GST) is a complex tax regime in India, and calculating GST on a bundled package of furniture setup delivery in a rental invoice can be challenging. In this article, we will provide a step-by-step guide on how to calculate GST on a bundled package of furniture setup delivery in a rental invoice.
What is GST on Rental Services?
Rental services are taxable under the GST regime, and the tax rate applicable to rental services depends on the type of goods or services being rented. For example, the GST rate for rental services concerning textiles, clothing, and footwear is 18%. You can use recurringinvoice.in to create professional recurring invoices for your rental services.
HSN Codes for Furniture and Setup Delivery
The Harmonized System of Nomenclature (HSN) code is a six-digit code used to classify goods under the GST regime. For furniture and setup delivery, the HSN code is 997326. The GST rate applicable to this code is 18%. You can use billformat.in to create professional bill templates for your furniture and setup delivery services.
Calculation of GST on Bundled Package
The GST on a bundled package of furniture setup delivery in a rental invoice is calculated as follows:
GST Amount = (Total Rent + Setup Charges) x GST Rate
GST Amount = (₹10,000 + ₹5,000) x 18%
GST Amount = ₹1,800
Tools like rentsoftware.in help businesses manage rental billing, including calculating GST on bundled packages.
Latest Billing Rules and Slabs
The latest billing rules and slabs for GST on rental services are as follows:
Turnover up to ₹5 Crores: You only need to mention the 4-digit code.
Turnover above ₹5 Crores: You must mention the detailed 6-digit code.
Section 1: Outright Sale of Goods (HSN Codes)
Item Description HSN Code GST Rate Latest Billing Rules & Slabs
Costumes (Knitted/Stretchable) 6114 5% or 18% 5% GST: Sale value ≤ ₹2,500 per piece. 18% GST: Sale value > ₹2,500 per piece.
Costumes (Non-Knitted/Woven) 6211 5% or 18% 5% GST: Sale value ≤ ₹2,500 per piece. 18% GST: Sale value > ₹2,500 per piece.
Imitation Jewellery 7117 3% 3% GST: Flat rate for standard artificial and imitation jewellery.
Wigs & Hair Extensions 6704 18% Covers items made of human/animal hair or synthetic textile materials.
Hats & Headgear 6505 18% General headgear, knitted or made up from lace/felt/textiles.
Goggles / Sunglasses 9004 18% Spectacles, goggles, and the like, corrective or protective.
Props & Carnival Articles 9505 18% Festive, carnival or other entertainment articles.
Section 2: Rental Services (SAC Codes)
Note: If your turnover is < ₹5 Cr, you can simply use the 4-digit code 9973 for all rentals below. If > ₹5 Cr, use the precise 6-digit codes.
Rental Service Description SAC Code (6-Digit) GST Rate Coverage
Rental of Costumes & Apparels 997326 18% Leasing or rental services concerning textiles, clothing, and footwear.
Rental of Props & Carnival Equipment 997324 18% Leasing or rental services concerning pleasure and leisure equipment.
Rental of Jewellery & Misc Accessories 997329 18% Leasing or rental services concerning other goods (catch-all category).
Generated May 2026. Final tax liabilities should be cross-verified with your Chartered Accountant.