IFSCA specifies GPUs and linked data centre equipment for operating lease in IFSCs
TaxByKK · Compliance News · taxbykk.com22 Oct 2026
In short
The International Financial Services Centres Authority has specified "Graphics Processing Units" and "connected data centre equipment" as equipment whose operating lease (including a hybrid of operating and financial lease) counts as a financial product under the Central Government's notification S.O. 5199(E) of 14 December 2021. The notification, IFSCA/GN/2026/017 dated 22 October 2026, was published in the Gazette of 29 October 2026 and takes effect on publication.
- Authority
- International Financial Services Centres Authority (IFSCA)
- Notification
- No. IFSCA/GN/2026/017 dated 22 October 2026 (Gazette Extraordinary of 29 October 2026)
- Type
- Notification
- Made under
- S.O. 5199(E) of 14 December 2021 read with section 12 of the IFSCA Act, 2019
- Effective from
- Date of publication in the Official Gazette
- Equipment specified
- Graphics Processing Units and connected data centre equipment
What changed
| Item | Before | Now |
|---|---|---|
| Equipment for operating lease as a financial product | None specified in this notification | GPUs (including general-purpose GPUs, AI accelerators, tensor or neural processing units, accelerated computing equipment and rack-scale AI systems) |
| Connected data centre equipment | — | Processors and controllers, servers, storage, networking, interconnect and power equipment, and their parts, only where dedicated to and directly associated with GPUs; equipment serving the data centre facility as a whole is left out |
The notification only names the equipment. It does not state licensing conditions, tax treatment, minimum lease terms or the names of lessors. Other conditions come from IFSCA's lessor framework and the Central Government notification it refers to.
Who it applies to
- Lessors and lessees in GIFT IFSC and other IFSCs
- Data centre and AI infrastructure operators
- Lawyers, CAs and CSs advising on leasing structures
What to do
- Check whether planned GPU or rack-scale AI leases fall within the definitions.
- Confirm that data centre equipment is dedicated to and directly associated with GPUs before treating it as covered.
- Read the notification with IFSCA's framework for lessors.
Reference
IFSCA notification No. IFSCA/GN/2026/017, 22 October 2026 (ADVT.-III/4/Exty./408/2026-27), Gazette of India Extraordinary Part III Section 4 No. 639 of 29 October 2026.
Read the official PDF: IFSCA notificationWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What has IFSCA specified for operating lease?
Graphics Processing Units and connected data centre equipment dedicated to and directly associated with them.
Are rack-scale AI systems included?
Yes, including compute trays, switch trays and integrated CPU and input or output units in a rack.
From when does it apply?
From publication in the Official Gazette, dated 29 October 2026.