Residential Property Rental Services Under SAC Code 997211
Residential property rental services focus on leasing houses, flats and apartments to tenants for long or medium term stays. Owners and real estate agents use these services to manage house for rent listings and apartment rental services so that properties remain occupied with clear paperwork. Under GST, such residential property rental services are classified under SAC 997211. This SAC code and its GST rate decide how GST is handled on lease rentals and related property service charges.
Residential Property Rental Services GST Rate for SAC Code 997211
Real estate leasing and property transaction services under these SAC codes are treated as real estate related services under GST. The taxable value usually includes rent for taxable properties, service fees, brokerage, facility charges and other consideration received from tenants, buyers or sellers, while pure security deposits and government taxes collected at actuals may be kept outside the value where conditions are met.
After the September 2025 revision, most commercial rental and property service components that are not specifically exempt are generally placed in the 18% slab with input tax credit for eligible registered business tenants and clients. At the same time, certain residential rentals used for personal living and specific land related transactions may enjoy exemption subject to conditions, so these must be checked carefully before finalising GST treatment.
The table below summarises the prevailing GST position for SAC code 997211, indicating the treatment of residential property rental services and the applicable rate or exemption as per the latest rules.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
Landlords, brokers and real estate service providers using these SAC codes should align their invoicing, GST rate in % and tax calculation with the latest notifications and clearly indicate whether a transaction is taxable or exempt. This helps business tenants and property clients understand GST impact and maintain proper records for their own GST returns.
Explore Other SAC Codes Under 9972
These SAC codes fall under the real estate services group 9972, which covers leasing, rental, sale related services and other support activities involving land and buildings. Each six digit SAC within this group identifies a particular type of real estate service for GST classification and reporting.
The list below highlights key six-digit SAC codes under 9972.
Property owners, agents and consultants should choose the SAC that best matches their main activity, whether it is residential property rental, commercial leasing, building sale services, timeshare property services or vacant land sales. Using the correct SAC and GST rate in % makes billing more transparent and reduces the risk of disputes during GST scrutiny.
Conclusion
Residential property rental services under SAC 997211 cover leasing of houses, flats and apartments for people to live in. Depending on the nature of use and conditions notified, some residential rentals may be exempt while others can attract 18% GST with input tax credit for business tenants. Owners and agents should classify such services under SAC 997211, confirm whether the particular rental is taxable or exempt and mention the correct GST rate in % on rent agreements and invoices.
Important Disclaimer
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.
Frequently Asked Questions
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What does SAC code 997211 cover in GST?
SAC 997211 covers rental and leasing services of residential houses, flats and similar dwellings. It is used when a landlord rents a property mainly for living purposes. In many normal residential rental cases to individuals, such rent is exempt from GST under current rules.
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Does SAC 997211 include rental and leasing of residential houses and apartments?
Yes. Renting of independent houses, apartments, paying guest residences or similar properties for residence is classified under SAC 997211. However, GST impact depends on who the tenant is and why the property is used. Residential use by individuals is usually exempt, while some business uses can be taxable.
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When is residential rent under SAC 997211 exempt from GST?
Residential rent is generally exempt when a dwelling is rented to a person for use as a residence, not for running a business. If a registered business rents a house to run a guest house or commercial activity, GST rules may differ. Exemption details should be checked carefully.
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Is GST charged if a company rents a house for staff under SAC 997211?
If a registered company rents a residential property to use as a guest house or for business purposes, GST may apply, often under reverse charge. If it simply reimburses employees but the lease is in the employee’s name, treatment may differ. Exact position depends on structure and current rules.
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Can landlords claim ITC on GST paid for SAC 997211 when rent is taxable?
Where residential renting is taxable, landlords may be able to claim ITC on eligible inputs like maintenance services or repairs. However, if the rental itself is exempt, ITC on related expenses is not allowed. Owners must track whether they provide taxable or exempt rentals before availing credit.