Building Sales Services Under SAC Code 997222
Building sales services focus on helping owners and buyers complete safe and transparent property sale transactions. Real estate brokerage firms and property selling agents handle property listing, buyer shortlisting, negotiation support and deal closure for residential and commercial buildings. Under GST, such building sales related services are classified under SAC 997222. This SAC code and its GST rate decide how GST applies on brokerage and professional service fees linked to building sale deals.
Building Sales Services GST Rate for SAC Code 997222
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 explains the prevailing GST treatment for SAC code 997222, showing the usual 18% slab for building sales brokerage services and any special cases notified by the authorities.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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%. |
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.
Below is a list of related 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
Building sales services under SAC 997222 relate to brokerage and support for selling residential and commercial buildings. Brokerage and advisory fees connected with these sales generally attract 18% GST with input tax credit for eligible business buyers or sellers, even when the transfer of the completed building itself may not be taxable. Firms should mark such services under SAC 997222, use the proper GST rate in % and maintain clear records of each deal.
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 997222 cover in GST?
SAC 997222 covers commission and brokerage services specifically for selling or leasing buildings and flats. It is used by real estate agents who earn commission on successful transactions of completed buildings or ready units. The commission is a taxable service separate from the value of the property.
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Does SAC 997222 include commission-based services for selling buildings and flats?
Yes. When agents or channel partners help market and sell completed buildings or individual flats and receive a percentage of sale value as commission, those services fall under SAC 997222. They act as intermediaries between builders and buyers, and their income is subject to GST as a service.
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What GST rate applies to brokerage under SAC 997222?
Brokerage and commission under SAC 997222 are usually taxed at 18%. GST is applied on the commission amount charged to the builder, seller or buyer. The property sale itself is treated separately according to its own GST or stamp duty rules, depending on stage and type of property.
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Should real-estate agents use SAC 997222 when charging commission on property deals?
Yes. Real estate agents dealing mainly with ready buildings and flats should use SAC 997222 on their invoices. This keeps classification consistent and helps their clients understand the tax treatment. Using the right SAC also supports smoother GST compliance and reporting of sales in returns.
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Can buyers or developers claim ITC on GST paid for SAC 997222 services used for business?
Developers or businesses buying commercial property for taxable use may claim ITC on GST paid on brokerage, subject to conditions. Individuals buying homes for personal use cannot claim ITC. Buyers must see whether the property is used for business and whether GST rules allow credit in their case.