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GST invoice format for a furniture rental business

A furniture rental invoice is a monthly service bill. Leasing or rental of furniture and household appliances falls under SAC 997323, and since the rental entry follows the rate of the like goods, rent on beds, sofas and tables taxed as furniture under 9403 and 9401 works out at 18%. Beyond the basics, list every item rented with its tag number, the tenure and billing month, the refundable security deposit, delivery charges, damage terms and any early-closure fee.

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Sample furniture rental invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Queen bed with storage, wooden, monthly rent	997323	1 MONTH	900.00	900.00	18%
Three-seater fabric sofa, monthly rent	997323	1 MONTH	800.00	800.00	18%
Study table with chair, monthly rent	997323	1 MONTH	450.00	450.00	18%
Six-seater dining table set, monthly rent	997323	1 MONTH	1,100.00	1,100.00	18%
One-time delivery and assembly	997323	1 JOB	499.00	499.00	18%
Taxable value				₹3,749.00
GST (CGST + SGST, or IGST if inter-state)				₹674.82
Invoice total				₹4,423.82

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a furniture rental invoice needs

Item list with asset tags: Rental furniture is tracked by asset tag. Listing each piece, such as queen bed with mattress, three-seater sofa, study table, with its tag lets both sides check the inventory at delivery and return.
Tenure and billing month: State the plan tenure, such as 12 months, and the month being billed. Rental prices depend on tenure, and the billing period shows that the invoice covers a specific month.
Refundable security deposit: Show the deposit collected, separately from rent, and mark it refundable. A deposit is not taxed while it is held as security, but it must be clearly identified so it is not mistaken for advance rent.
Delivery, installation and pickup charges: One-time charges for delivery and assembly should be separate lines. They are part of the rental supply and taxed with it, and listing them avoids confusion with the monthly rent.
Damage and wear terms: Define what counts as normal wear and what will be charged at return. Printing the terms on the first invoice reduces disputes when deductions are made from the deposit.
Early closure and swap fee: Customers often end the plan early or swap items. Mentioning the fee for this on the invoice sets expectations for the final bill.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a furniture rental

Rent follows the furniture rate

Leasing or rental of goods is classed under heading 9973, and the rates notification ties most such leases to the tax on a sale of like goods. Wooden and metal furniture of 9403 and seats of 9401 are in the 18% schedule after 22 September 2025, so rent on them is billed at 18%. The 5% entry for 9403 is limited to furniture wholly made of bamboo, cane or rattan, and a rental company that offers cane furniture should check each item's description before applying a lower rate.

Security deposits

Under the definition of consideration in section 2(31), a deposit is not treated as payment for a supply unless it is applied as consideration. A refundable deposit held against damage is therefore not taxed when collected. When part of it is retained at the end of the tenure for damage or unpaid rent, that retained amount becomes consideration and needs an invoice with GST at 18%.

Continuous supply and monthly billing

A furniture rental plan is a continuous supply of service. Raise the invoice on or before the due date for each month's rent. Customers paying the whole year's rent upfront should get a receipt voucher with GST on the advance, followed by monthly or one-time invoices that adjust it, as your contract provides.

Place of supply for movable goods on rent

For rental to an unregistered individual, the general rule applies and the place of supply is usually the customer's address. Where your warehouse is in one state and you deliver to a customer in another, check whether you need registration there, because rental businesses often operate city by city with separate GSTINs.

Buyout at the end of tenure

Some plans let customers buy the furniture after the rental period. The buyout is a sale of used goods, invoiced separately under the furniture's HSN at the applicable rate, and should not be booked as a final rental instalment.

Common billing mistakes

Charging GST on the full refundable deposit at collection, or charging none on the part retained for damage.
Using a sale invoice with furniture HSN for monthly rent instead of the rental SAC 997323.
Billing a year's rent upfront as one invoice without receipt vouchers or monthly adjustments, making refunds on early closure messy.
Treating an end-of-tenure buyout as a rental instalment, so the sale of the furniture is never recorded.
Swapping a damaged sofa for a new one mid-tenure without recording the change, so the item list on later invoices no longer matches what is in the customer's home.

Furniture rental GST invoice: FAQ

What is the GST rate on furniture rental?

Rent on furniture is taxed at the rate applicable to the furniture itself, which for most items of 9401 and 9403 is 18%.

Is GST charged on the security deposit?

No, a refundable deposit is not consideration while held. GST applies only to any part retained towards damage or dues.

What SAC code applies to furniture rental?

997323, leasing or rental services concerning furniture and other household appliances.

Is delivery charged at the same rate?

Yes. Delivery and assembly charged as part of the rental are taxed with it at 18%.

How do I bill a corporate client renting furniture for staff flats?

Raise one monthly invoice to the company with a line per flat or per item set, quoting the company's GSTIN and the flat addresses. Companies can claim credit only where the rule on blocked credits allows, but the invoice must still show GST correctly.

Sources: CBIC — Notification 9/2025-Integrated Tax (Rate), goods rate schedules · CBIC — Notification 9/2025-Central Tax (Rate), 17 Sep 2025 · CBIC tax information portal (notifications and SAC scheme) · CBIC — GST rates for goods and services

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