9972 SAC Code: Real estate services

Description

Services by way of renting of residential dwelling for use as residence.

Notes

Taxable at 18% (paid by the tenant under reverse charge) when let to a GST-registered person, unless a proprietor rents it in a personal capacity for their own residence. Source: Notification 12/2017-Central Tax (Rate), S. No. 12 as amended by 04/2022 and 15/2022.

Description

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.

Notes

Exemption for religious ceremonies and specified low value renting by religious/charitable trusts continues unchanged. Threshold conditions in the description still apply.

Description

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

Notes

Upfront premium / salami for long term industrial / financial business plots supplied by Government-backed industrial bodies remains exempt as per existing notification conditions.

Description

(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.

Notes

Lease of land by Government to governmental authority / government entity continues to be exempt; no specific rate rationalisation announced here.

Description

(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.

Notes

Nil only for land leased as part of a residential or commercial construction supply under S. No. 3(i) to 3(if), and only up to one-third of the total amount; the rest is taxed with the construction. Source: Notification 11/2017-Central Tax (Rate), S. No. 16(ii) as amended by 01/2018 and 03/2019.

Description

Rental or leasing services involving own or leased residential property

Notes

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.

Description

Rental or leasing services involving own or leased non-residential property

Notes

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.

Description

Trade services of buildings

Notes

Selling a completed building (after its completion certificate or first occupation) is not a supply. Sale before completion is taxed as a construction service under 9954, and brokerage for a fee is 18%. (CGST Act Schedule III para 5; Notification 11/2017-Central Tax (Rate), S. No. 16(iii))

Description

Trade services of timeshare properties

Notes

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.

Description

Trade services of vacant and subdivided land

Notes

Selling land is not a supply under GST. Brokerage or marketing services for a fee are taxed at 18%. (CGST Act Schedule III para 5; Notification 11/2017-Central Tax (Rate), S. No. 16(iii))

Description

Property management services on a fee/commission basis or contract basis

Notes

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.

Description

Building sales on a fee/commission basis or contract basis

Notes

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%.

Description

Land sales on a fee/commission basis or contract basis

Notes

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.

Description

Real estate appraisal services on a fee/commission basis or contract basis

Notes

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.