HSN COde and tax rate of GST

For rental services under GST is 997323, which covers leasing or rental services concerning furniture and household appliances—including mattresses—and is taxed at 18%.

For a mattress supplied on hire without an operator, the service is generally classified under SAC 9973 (leasing or rental services, with or without an operator). The applicable GST rate is generally 18%—9% CGST plus 9% SGST, or 18% IGST—subject to the exact nature of the contract and any specific exemption. HSN applies to goods; for the rental service, use the relevant SAC, not the mattress’s HSN. An institute’s status alone does not ordinarily change the rate.

If the mattress is supplied as part of accommodation or another composite service, classification and rate may differ. Review the agreement and invoice descripttion to determine whether it is a standalone hire or bundled with another supply.

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Mattress hire to an institute – how the rate is actually decided:
• Classification: hire of goods without an operator falls under SAC 9973 (leasing or rental of goods). HSN 9404 belongs to the mattress itself, not to the rental service.
• Rate rule: entry 17(viii) of the services rate notification taxes such hire at the same rate as the outright sale of the same goods. So the rental rate follows the mattress's own rate under Notification 9/2025-CT(R). For ordinary foam or spring mattresses this is 18%. Check the specific 9404 entry if the mattresses are coir or cotton-filled, as some of those carry a lower rate.
• No exemption for educational institutions: the exemption for services to schools covers only transport, catering, security and housekeeping, not hire of goods. Higher-education institutes get no such exemption.
• If the institute itself provides hostel accommodation with mattresses to students, that is a composite accommodation supply. It can be exempt where the charge is up to ₹20,000 per person per month for a continuous stay of 90 days.
• Invoice: show SAC 9973 with the correct place of supply, and keep the hire agreement on file.