Real Estate Appraisal Services Under SAC Code 997224
Real estate appraisal services provide independent valuation of houses, flats, land and commercial properties for sale, loan, insurance or financial reporting purposes. Home valuation and property valuation services use standard methods to estimate fair market value so that banks and investors can make informed decisions. Under GST, such real estate appraisal services are classified under SAC 997224. This SAC code and its GST rate decide how GST is applied on valuation and appraisal fees.
Real Estate Appraisal Services GST Rate for SAC Code 997224
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 outlines the current GST treatment for SAC code 997224, highlighting the 18% slab for real estate appraisal and valuation services and any specific exceptions.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997224 | Real estate appraisal services on a fee/commission basis or contract basis | 18% with ITC | 18% with ITC | Valuation and appraisal services for real estate are standard taxable services at 18%, as shown in real estate SAC rate tables. The 56th Council did not include this SAC in its list of items moving to a different slab, so the 18% rate continues. |
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 are the major related six-digit SAC codes under parent 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
Real estate appraisal services under SAC 997224 include valuation of residential, commercial and land assets for sale, loan or reporting. Valuation and appraisal fees are typically taxed at 18% with input tax credit for eligible registered entities. Valuers should classify such assignments under SAC 997224, charge GST at the correct rate in % and ensure that reports and invoices clearly link the fee to the property being valued.
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 997224 cover in GST?
SAC 997224 covers professional valuation and appraisal services for real estate, including residential, commercial and industrial properties. It is used when valuers, chartered engineers or surveyors provide valuation reports for loan approvals, financial reporting, sale consideration, stamp duty or other regulatory and commercial purposes.
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Does SAC 997224 include real estate appraisal and property valuation services?
Yes. Estimating market value, fair value or forced sale value of properties and issuing formal valuation certificates fall under SAC 997224. These services are often used by banks, companies, investors and government bodies to support lending decisions, balance sheet reporting or transaction pricing.
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What GST rate applies to valuation fees under SAC 997224?
Valuation and appraisal fees under SAC 997224 are generally taxed at 18%. GST is applied on the professional fees charged by the valuer. Out of pocket expenses may be included or billed separately, but the main service is treated as a taxable professional service under GST.
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Should banks and developers use SAC 997224 for professional valuation reports?
Valuers raising invoices on banks, developers, companies or individuals for property valuation should use SAC 997224. The recipients then book these costs as professional charges. For banks and developers, correct SAC classification helps in GST reporting and in deciding eligibility of input tax credit on such expenses.
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Can clients claim ITC on GST paid for SAC 997224 when valuation is for business?
Businesses using valuation reports for lending, project approval or financial reporting related to their taxable activities can normally claim ITC on GST paid for SAC 997224 services. Valuations for purely personal purposes, like home loans for self occupied houses, do not allow ITC to the individual borrower.