Is GST Applicable on Jewellery Rentals to Film Production Houses or Advertising Agencies?
In the Indian GST regime, businesses must comply with the tax authorities while renting out their goods, including jewellery, to other companies. One such example is renting jewellery to film production houses or advertising agencies. In this article, we will explore whether GST is applicable on jewellery rentals and the necessary steps to follow.
What is GST on Rental Services?
GST on rental services is governed by the GST Act, 2017. As per the act, the GST rate for rental services is 18% under SAC code 997326 for the rental of costumes and apparels, 997324 for the rental of props and carnival equipment, and 997329 for the rental of jewellery and miscellaneous accessories.
Businesses renting out jewellery must provide a rent invoice to the lessee, which must include the following details:
- Date and time of the rent agreement
- Details of the rented goods, including the HSN/SAC code
- Quantity and value of the rented goods
- Period of rental
- Payment terms
- Signatures of both parties
You can use recurringinvoice.in to create professional rent invoices with ease.
HSN/SAC Code for Jewellery Rentals
The HSN/SAC code for jewellery rentals depends on the turnover of the business. If the turnover is up to ₹5 crores, the business must use the 4-digit code 9973 for all rentals. If the turnover is above ₹5 crores, the business must use the precise 6-digit codes, which are 997326 for the rental of costumes and apparels, 997324 for the rental of props and carnival equipment, and 997329 for the rental of jewellery and miscellaneous accessories.
For example, if a business rents out artificial rings, necklaces, and bangles, the HSN code would be 7117, and the SAC code would be 997329.
Tools like rentsoftware.in help businesses manage rental billing and generate rent invoices with the correct HSN/SAC codes.
Rent Invoice Format
The rent invoice format must include the following details:
- Date and time of the rent agreement
- Details of the rented goods, including the HSN/SAC code
- Quantity and value of the rented goods
- Period of rental
- Payment terms
- Signatures of both parties
You can use billformat.in to create professional bill templates, including rent invoice formats.
Conclusion
GST is applicable on jewellery rentals to film production houses or advertising agencies. Businesses must provide a rent invoice to the lessee, which must include the correct HSN/SAC code, quantity and value of the rented goods, period of rental, payment terms, and signatures of both parties. By following the necessary steps and using the correct HSN/SAC codes, businesses can ensure compliance with the GST authorities.