9972 SAC Code: Real estate services
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.
Scope of SAC Code 9972
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.
Categorisation of SAC Code 9972
SAC Code 9972 under GST can be classified in the following ways:
| SAC Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 9972 | Services by way of renting of residential dwelling for use as residence. | 0% without ITC | 0% without ITC | Residential dwelling used as residence continues to be exempt. New regime does not disturb this exemption. |
| 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. | 0% without ITC | 0% without ITC | Exemption for religious ceremonies and specified low value renting by religious/charitable trusts continues unchanged. Threshold conditions in the description still apply. |
| 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 | 0% without ITC | 0% without ITC | Upfront premium / salami for long term industrial / financial business plots supplied by Government-backed industrial bodies remains exempt as per existing notification conditions. |
| 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. | 0% without ITC | 0% without ITC | Lease of land by Government to governmental authority / government entity continues to be exempt; no specific rate rationalisation announced here. |
| 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. | 0% without ITC | 0% without ITC | Land portion in such composite supplies remains non-taxable / exempt to the extent of one-third of the total amount. Only the construction value is taxed separately under works contract entries. |
| 997211 | Rental or leasing services involving own or leased residential property | 0% without ITC or 18% with ITC | 0% without ITC or 18% with ITC | Renting a residential dwelling for use as a residence is generally exempt from GST, while renting for business use or certain registered recipients can be taxable at 18% (often under reverse charge). Rate finder tools reflect both 0% and 18% depending on use. The 56th Council reforms did not alter this core exemption plus taxable structure. |
| 997212 | Rental or leasing services involving own or leased non-residential property | 18% with ITC | 18% with ITC | Renting of commercial or non residential property is a standard taxable supply at 18% with ITC, both in rate finders and explanatory articles on real estate services. No rate change was proposed for this SAC in the latest Council meeting. |
| 997213 | Trade services of buildings | 18% with ITC | 18% with ITC | Covers brokerage or trade services relating to sale or purchase of buildings. Real estate SAC overviews place such fee based services under 18%, while the underlying sale of land or completed building can be outside GST. There is no notified change for the trade service rate in the 2025 reforms. |
| 997214 | Trade services of timeshare properties | 18% with ITC | 18% with ITC | Intermediation or trade services for timeshare units follow the general real estate fee or commission pattern at 18%. Recent real estate GST summaries retain this rate without any mention of rationalisation for this SAC. |
| 997215 | Trade services of vacant and subdivided land | 18% with ITC | 18% with ITC | The direct sale of land is outside GST, but brokerage, marketing or trade services around land plots are taxable at 18%. Rate lists for real estate services show 18% for such fee based activities and this has not been changed by the 56th Council. |
| 997221 | Property management services on a fee/commission basis or contract basis | 18% with ITC | 18% with ITC | Property management on a fee or commission basis (rent collection, maintenance coordination etc) is treated as a taxable service at 18% in current SAC rate tools and explanatory articles. No change or concessional slab is announced for this category. |
| 997222 | Building sales on a fee/commission basis or contract basis | 18% with ITC | 18% with ITC | Covers commission income for assisting in sale of buildings. Real estate SAC rate references consistently apply 18% for these services and recent GST updates retain this slab. Some special reverse charge rules exist for long term leases but the notional rate remains 18%. |
| 997223 | Land sales on a fee/commission basis or contract basis | 18% with ITC | 18% with ITC | Similar to 997222 but for land. Commission or facilitation fees on sale of land are taxable at 18%, although the land sale itself is not subject to GST. No specific change has been made to the rate for this SAC code in the latest reforms. |
| 997224 | Real estate appraisal services on a fee/commission basis or contract basis | 18% with ITC | 18% with ITC | Valuation and appraisal services for real estate are standard taxable services at 18%, as shown in real estate SAC rate tables. The 56th Council did not include this SAC in its list of items moving to a different slab, so the 18% rate continues. |
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