Land Sale Commission Services Under SAC Code 997223
Land sale commission services relate to brokerage and consulting work for buying and selling plots and open land parcels. Land brokerage services help clients identify suitable land, arrange site visits, assist in negotiation and support documentation till registration. Under GST, such land sale commission services are classified under SAC 997223. This SAC code and its GST rate decide how GST is charged on commission and advisory fees linked to land transactions.
Land Sale Commission Services GST Rate for SAC Code 997223
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 sets out the GST approach for SAC code 997223, covering the typical 18% slab for land sale commission services while considering exemptions available for transfer of land.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997223 | Land sales on a fee/commission basis or contract basis | 18% with ITC | 18% with ITC | 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. |
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.
These are the main 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
Land sale commission services under SAC 997223 cover brokerage and advisory work for buying and selling plots and open land. While the transfer of land can be outside GST, commission and professional fees are normally taxed at 18% with input tax credit for registered business clients. Brokers should classify these charges under SAC 997223, apply the right GST rate in % and keep their documentation ready for review.
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 997223 in GST for land sale commission services?
SAC 997223 covers brokerage and commission services related specifically to sale or purchase of land and plots. It is used by property brokers when they arrange land deals and earn commission from either party. The land itself remains outside GST, but the commission is taxable.
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Does SAC 997223 cover brokerage and commission on sale of land and plots?
Yes. When brokers help identify buyers and sellers for land, negotiate price and assist with documentation, their commission is classified under SAC 997223. Even though land is not subject to GST, the service of brokerage is treated as a separate taxable supply of service.
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What GST rate applies to land brokerage services under SAC 997223?
Land brokerage services under SAC 997223 are generally taxed at 18%. GST is levied on the commission value billed to the client. The sale price of land is not included in this taxable value. Brokers must charge and pay GST if they are registered or above the threshold.
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Should real-estate agents use SAC 997223 when charging commission on land deals?
Yes. Agents and channel partners dealing primarily in land transactions should use SAC 997223 on their invoices for commission income. This helps clearly separate land services from building related brokerage codes and ensures accurate classification and reporting in GST returns for both broker and client.
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Can businesses claim ITC on GST paid for SAC 997223 services used for projects?
Businesses purchasing land for a project may not be able to claim ITC related to land itself, but GST on brokerage services can sometimes be claimed if it directly supports a taxable project, subject to current restrictions on land and construction related credits. Professional advice is recommended.