Non Residential Property Services Under SAC Code 997212
Non residential property leasing services cover renting out offices, shops, showrooms, warehouses and other commercial spaces to business tenants. Landlords and property managers use these services to handle office space for rent and other non residential property leases with proper agreements and billing. Under GST, such non residential property services are classified under SAC 997212. This SAC code and its GST treatment decide how GST is charged on commercial rent and related facility charges.
Non Residential Property Services GST Rate for SAC Code 997212
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 explains the current GST treatment for SAC code 997212, highlighting the standard 18% slab for taxable non residential property leasing services and any notified exceptions.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
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.
Below is a list of related 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
Non residential property services under SAC 997212 relate to commercial leasing of offices, shops, showrooms and warehouses. These rentals are usually taxed at 18% with input tax credit for registered business tenants. Landlords and property managers should use SAC 997212 for such leases, charge GST at the proper rate in %, and keep documentation clear so that tenants can claim credit smoothly.
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 is SAC code 997212 in GST for non-residential property?
This code covers renting and leasing of commercial properties such as offices, shops, warehouses, showrooms and industrial spaces. It is used when the property is leased for business or commercial use. Such commercial rentals are generally taxable under GST if the landlord is registered or crosses threshold.
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Does SAC 997212 cover leasing of offices, shops, warehouses and commercial spaces?
Yes. Leasing of office buildings, retail shops, godowns, industrial sheds, cold stores and similar business premises comes under SAC 997212. The tenant usually uses the property to run a business, store goods or provide services. GST is typically charged on the rent if conditions for registration are met.
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What GST rate applies to commercial property rent under SAC 997212?
Commercial property rent under SAC 997212 is commonly taxed at 18%. GST is calculated on the rent or lease amount charged to the tenant. Depending on who is registered, tax may be paid by the landlord or under reverse charge by the tenant as per notified rules.
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Should business centres and co-working spaces use SAC 997212 on invoices?
Yes. Owners of business centres and co working spaces normally classify their basic space renting portion under SAC 997212. If they also provide bundled services like reception or internet, they must see whether it is a composite supply. The renting element still relates mainly to this SAC code.
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Can tenants claim ITC on GST paid for SAC 997212 when used for business?
Registered tenants using the premises for taxable or zero rated supplies can usually claim ITC on GST charged on commercial rent. They must have a proper tax invoice and use the property for business purposes. ITC is generally not available when the property is used for exempt activities.