Property Management Services Under SAC Code 997221
Property management services cover day to day care of rental buildings, flats and small commercial units. This includes rental property management, tenant coordination, rent collection and real estate maintenance so that owners do not have to handle every issue themselves. Under GST, such property management services are classified under SAC 997221. This SAC code and its GST rate decide how GST is charged on property management fees and maintenance service charges raised on owners or housing societies.
Property Management Services GST Rate for SAC Code 997221
Real estate management, brokerage, commission and appraisal services under these SAC codes fall in the real estate services category for GST. The taxable value generally covers management fees, brokerage, commission, valuation charges and other service consideration received from owners, tenants or buyers, while refundable security deposits and pure government duties collected at actuals may be kept outside the value if conditions are satisfied.
After the September 2025 GST rate revision, most taxable real estate service components that are not specifically exempt are usually placed in the 18% slab with input tax credit for eligible registered business clients. At the same time, transfer of completed buildings or land itself can be outside GST, so the service part and the property transfer must be evaluated separately for each transaction.
The table below summarises the current GST position for SAC code 997221, highlighting the standard 18% slab for taxable property management 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 |
|---|---|---|---|---|
| 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. |
Real estate service providers using these SAC codes should clearly show service value, GST rate in % and GST amount on their tax invoices. This helps clients understand the tax impact, claim input tax credit wherever they are eligible and keep their own GST records accurate for future scrutiny.
Explore Other SAC Codes Under 9972
These SAC codes fall under the real estate services group 9972, which includes property management, brokerage, commission, appraisal and other support activities for land and buildings. Each six digit SAC within this group identifies a specific real estate service for GST reporting.
The list below highlights key six-digit SAC codes under 9972.
Property managers, brokers and valuers should choose the SAC that best matches their main work, such as property management, building sales assistance, land sale commission or real estate appraisal. Selecting the correct SAC and GST rate in % makes billing more transparent and reduces the chance of disputes during GST reviews.
Conclusion
Property management services under SAC 997221 cover daily operations, tenant handling and upkeep of rental properties. Management and maintenance fees for such services are normally taxed at 18% with input tax credit for registered business clients who use the property for taxable supplies. Service providers should classify these activities under SAC 997221, apply the correct GST rate in % and keep their agreements and invoices aligned with this position.
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 997221 in GST for property management?
SAC 997221 covers property management services for residential or commercial properties. It includes rent collection, maintenance coordination, tenant communication, facility management and other day to day administration of buildings or housing complexes, usually provided by property managers, facility managers or specialised service companies.
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Does SAC 997221 cover rental property management, maintenance and tenant services?
Yes. Activities like managing tenants, handling complaints, arranging repairs, overseeing housekeeping, collecting association charges and preparing property reports fall under SAC 997221. The property manager may act for individual owners, societies or commercial building owners and charges a management fee for these services.
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What GST rate applies to property management fees under SAC 997221?
Property management services under SAC 997221 are commonly taxed at 18%. GST is charged on the management or service fee billed to the owner, association or society. If the service provider is below threshold and not registered, GST may not apply, but clients then cannot claim ITC.
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Should housing societies or facility managers use SAC 997221 on invoices?
Professional facility management companies and property managers should use SAC 997221 on invoices for their management services. Housing societies themselves may act as non profit associations; their GST treatment depends on membership charges, limits and specific exemptions available for resident welfare associations under current rules.
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Can owners claim ITC on GST paid for SAC 997221 when property is used for business?
Business owners who use managed properties for taxable activities, such as offices or shops, can generally claim ITC on GST charged for property management services. Residential owners using flats for personal use cannot claim ITC. The key test is whether the property supports taxable business operations.