What is HSN code for rent?

HSN codes or Harmonized System of Nomenclature is a key player when it comes to the GST framework. I can give you a helping hand in understanding more about the same, specially the rent HSN code. So let’s get started right away!

I would like to first talk a little bit about what HSN codes mean in the GST world. The HSN codes help in the classification of goods under GST. Internationally used, these codes make the lives of businesses a lot easier. How? Well they let the business owners analyse and mark the right tax rates to different product categories. 

As of now, it is compulsory for taxpayers with a total annual turnover of up to 5 crore rupees to submit 4-digit HSN codes in their GSTR-1.

Rental income HSN Code

The HSN code for rent is 997212. This deals with the renting of commercial immovable property services. It diversifies the goods in connection with renting and leasing of commercial properties. Here in, the code entails the renting of warehouse, industrial units, office spaces, retail stores, etc.

HSN Code for rental income

The code 997212 is used in various spaces. They are as follows.

• Industrial Property Rent:

   The HSN code 997212 incorporates the renting or leasing of manufacturing units, factories and more which come under the category of industrial properties.

• Leasing:

  The code also encloses the leasing of buildings when it comes to industrial or commercial reasons. 

• Commercial Property Rent:

  When it comes to leasing or renting commercial properties, HSN code 997212 covers it. 

I hope this helps you in understanding HSN code for renting of immovable property.

As everyone mentioned above, for taxation purposes, India uses a defined code called the Harmonized System of Nomenclature (HSN) for categorising goods and services. One crucial category that is used to determine the tax liability on rental income is the rental HSN code.

. Read on to get more information on HSN code.

What is Rent Income HSN Code?

The HSN code 997212 is mainly used for "Renting of Property Services." It is employed for classifying services about the leasing or renting of commercial real estate for a range of business-related usages. The leasing of office space, retail stores, warehouses, industrial units, and other assets is covered under this HSN code.

This code permits to recording and observation of trade statistics in addition to making the effective collection of import and export duties easier.

• Leasing of a property, either residential or commercial.

• Equipment and machinery rentals.

• Renting out automobiles, including trucks, buses, and cars.

• Renting out household items and furniture.

• Renting machinery and tools for construction.

It is important to make a note that the HSN code for rent is entirely different from the SAC. The Services Accounting Code (SAC), which serves as the basis for services under GST, is 997211 for residential properties and 997212 only for commercial properties. 

Ultimately, the HSN code for rent is a useful instrument for bringing international trade practices into balance and streamlining the taxation and classification of rented goods and services. This is all I knew about house rent HSN code.