GST Rate on Franchise
The GST rate on franchise is 18%, under SAC code 997334 (licensing for trademark and franchises). Here is the full breakdown, a worked example, and related rates in Services.
GST rate breakdown for franchise
- GST rate: 18%
- Intra-state: 9% CGST + 9% SGST
- Inter-state: 18% IGST
- SAC code on the invoice: 997334
- Also covers: trademark license
Rates reflect the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Confirm the current rate on the official GST portal before invoicing.
Worked example: GST on franchise
- Taxable value: ₹10,000
- GST (18%): ₹1,800
- Within state: ₹900 CGST + ₹900 SGST
- To another state: ₹1,800 IGST
- Invoice total: ₹11,800
FAQs about GST on franchise
What is the GST rate on franchise?
The GST rate on franchise is 18%. Intra-state it is 9% CGST + 9% SGST; inter-state it is 18% IGST. Franchise falls under SAC code 997334.
What is the HSN code for franchise?
Franchise falls under SAC code 997334, which covers licensing for trademark and franchises. Show this code on every GST tax invoice line for franchise.