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SAC code 9972 is exclusively assigned to real estate services, covering a wide spectrum of activities related to the construction, sale, purchase, leasing, and renting of properties. It serves as a systematic classification system within the GST framework, specifically tailored for the real estate sector.
The code 9972 further comprises various sub-categories that allow for more precise categorization of specific types of real estate services. These sub-headings include services such as construction of residential or commercial buildings, land development, sale of developed plots, leasing or rental of residential or commercial properties, and other related services.
By utilizing SAC code 9972 and its sub-categories, the GST process for real estate transactions becomes more streamlined and organized. It enables tax authorities to apply the appropriate GST rates and regulations to different types of real estate services, ensuring accurate taxation and compliance within the real estate sector.
SAC Code 9972 under GST can be classified in the following ways:
| SAC Code | Description | Rates(%) |
|---|---|---|
| 9972 | Services by way of renting of residential dwelling for use as residence. | Nil |
| 9972 | Services by a person by way of- (a) conduct of any religious ceremony; (b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act: Provided that nothing contained in entry (b) of this exemption shall apply to,- (i) renting of rooms where charges are 1000 rupees or more per day; (ii) renting of premises, community halls, kalyana mandapam or open area, and the like where charges are 10,000 rupees or more per day; (iii) renting of shops or other spaces for business or commerce where charges are 10000 rupees or more per month. | Nil |
| 9972 | Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area. substituted on 13/10/2017 | Nil |
| 9972 | (i) Services by the Central Government, State Government, Union territory or local authority to governmental authority or government entity, by way of lease of land. | Nil |
| 9972 | (ii) Supply of land or undivided share of land by way of lease or sub lease where such supply is a part of composite supply of construction of flats, etc. specified in the entry in column (3), against serial number 3, at item (i); sub-item (b), sub-item (c), subitem (d), sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and sub-item (c) of item (vi). Provided that nothing contained in this entry shall apply to an amount charged for such lease and sublease in excess of one third of the total amount charged for the said composite supply. Total amount shall have the same meaning for the purpose of this proviso as given in paragraph 2 of this notification. | Nil |
| 997211 | Rental or leasing services involving own or leased residential property | 18% |
| 997212 | Rental or leasing services involving own or leased non-residential property | 18% |
| 997213 | Trade services of buildings | 18% |
| 997214 | Trade services of timeshare properties | 18% |
| 997215 | Trade services of vacant and subdivided land | 18% |
| 997221 | Property management services on a fee/commission basis or contract basis | 18% |
| 997222 | Building sales on a fee/commission basis or contract basis | 18% |
| 997223 | Land sales on a fee/commission basis or contract basis | 18% |
| 997224 | Real estate appraisal services on a fee/commission basis or contract basis | 18% |
The entire content on this page has been arranged to the best of the author’s understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
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