Real estate services fall under SAC heading 9972 under GST in India. This includes property rental, leasing, brokerage, property management and real estate appraisal services. The exact six-digit SAC code depends on the service provided, while GST rates and exemptions vary according to the transaction.
Since real estate services are classified using SAC (Services Accounting Code), not HSN, businesses should select the appropriate service code before preparing GST invoices.
What Is the SAC Code for Real Estate Services?
The main SAC heading for real estate services is 9972. It covers real estate services involving owned, leased or third-party properties, including rentals, property transactions and management services.
| SAC code | Service description |
|---|---|
| 9972 | Real estate services |
| 997211 | Rental or leasing of residential property |
| 997212 | Rental or leasing of non-residential property |
| 997213 | Trade services of buildings |
| 997214 | Trade services of time-share properties |
| 997215 | Trade services of vacant and subdivided land |
| 997221 | Property management services |
| 997222 | Building sales on a fee or commission basis |
| 997223 | Land sales on a fee or commission basis |
| 997224 | Real estate appraisal services |
For example, a property broker earning commission from arranging the sale of a building may use SAC 997222, while a business renting commercial premises may fall under SAC 997212.
The classification should reflect the actual service supplied, not simply the type of property involved.
GST Rates on Real Estate Services in India
GST treatment varies depending on whether the transaction involves property rental, brokerage, management, construction or the sale of immovable property.
| Real estate transaction or service | GST treatment |
|---|---|
| Real estate brokerage and commission | Generally 18% GST |
| Property management services | Generally 18% GST |
| Real estate appraisal and valuation services | Generally 18% GST |
| Commercial property rental | Generally 18%, subject to applicable provisions |
| Residential property rental for use as a residence | Exempt in specified cases; reverse charge may apply when rented to a registered person |
| Sale of land | Neither a supply of goods nor services under Schedule III |
| Sale of completed building | Generally outside GST when Schedule III conditions are met |
| Sale of under-construction property | Subject to applicable construction-service GST provisions |
Important: SAC 9972 does not carry one universal GST rate. The tax treatment depends on the exact service, recipient, property use, applicable exemptions and reverse-charge rules.
For under-construction properties, the relevant classification generally falls under construction services rather than ordinary property brokerage or rental services.
Types of Real Estate Services Covered Under SAC 9972
1. Residential Property Rental Services – SAC 997211
SAC 997211 covers rental or leasing services involving residential property.
Renting a residential dwelling for use as a residence is generally exempt when the applicable exemption conditions are met. However, rental to a GST-registered person may attract GST under reverse charge, subject to the relevant provisions and exceptions.
Businesses should verify the tenant’s GST registration status, the use of the property and applicable notification conditions.
2. Commercial Property Rental Services – SAC 997212
SAC 997212 covers rental or leasing of non-residential properties, such as offices, shops, warehouses and commercial buildings.
Commercial property rental generally attracts 18% GST when taxable.
The applicable tax-payment mechanism depends on the supplier’s and recipient’s registration status and relevant reverse-charge provisions.
3. Real Estate Brokerage Services – SAC 997222 and 997223
Real estate brokers and agents assist customers with buying, selling or arranging property transactions.
- SAC 997222: Building sales on a fee or commission basis.
- SAC 997223: Land sales on a fee or commission basis.
Brokerage and commission services generally attract 18% GST.
For example, a broker earning commission for arranging the sale of a residential apartment supplies a brokerage service, even if the underlying sale of the completed property is outside GST.
4. Property Management Services – SAC 997221
Property management services include managing properties on behalf of owners, coordinating maintenance, supervising tenants and handling property-related administration.
Such services generally attract 18% GST, subject to the applicable classification and tax provisions.
Property management should be distinguished from separately supplied construction, repair or maintenance services.
5. Real Estate Appraisal Services – SAC 997224
Real estate appraisal services involve assessing the value of land, buildings and other immovable properties.
These services may be provided for property transactions, financial assessments, lending or other commercial purposes.
Real estate appraisal services generally attract 18% GST.
Difference Between SAC 9972 and SAC 9954
Real estate services and construction services are not classified under the same SAC heading.
| Basis | SAC 9972 | SAC 9954 |
|---|---|---|
| Classification | Real estate services | Construction services |
| Covers | Property rental, brokerage, management and appraisal | Building construction and related construction work |
| Example | Commission earned by a property broker | Construction of a residential building |
| GST treatment | Depends on the real estate service | Depends on the construction activity and applicable conditions |
For example, a developer selling an under-construction apartment may be subject to the GST provisions applicable to construction services. A broker separately charging commission for arranging the sale provides a real estate brokerage service.
See our SAC code list under GST for other service classifications.
Is GST Applicable to the Sale of Land and Buildings?
GST treatment differs between land, completed buildings and under-construction properties.
Sale of land: The sale of land is treated as neither a supply of goods nor a supply of services under Schedule III of the CGST Act.
Sale of completed buildings: Sale of a building is generally outside GST when the entire consideration is received after the completion certificate, where required, or first occupation, whichever is earlier.
Under-construction properties: Transactions involving construction intended for sale may attract GST when consideration is received before the relevant completion or first-occupation milestone.
These rules concern the property transaction itself. Separate brokerage, legal, valuation or management services may still attract GST.
How to Find the Correct SAC Code for Real Estate Services
Businesses can identify the appropriate SAC code by following these steps:
- Identify the service: Determine whether the transaction involves rental, brokerage, management, appraisal or construction.
- Select the relevant heading: Use SAC 9972 for qualifying real estate services or the appropriate separate heading for construction and other activities.
- Check the six-digit classification: Select the code matching the specific service.
- Verify the GST treatment: Check the applicable rate, exemptions and reverse-charge conditions.
- Prepare the invoice: Include the required SAC classification and applicable GST details.
Businesses can verify service classifications through the official GST HSN/SAC Search Tool.
Why Is the Correct SAC Code Important for Real Estate Businesses?
Using the correct SAC code helps real estate businesses maintain consistent billing records and distinguish between different taxable services.
Accurate classification: Brokerage, rental and property management services have different classifications.
GST compliance: Correct classification supports the application of relevant GST rates, exemptions and reverse-charge provisions.
Invoice accuracy: SAC codes help identify the services supplied in GST invoices.
Record-keeping: Consistent classifications help businesses organise rental, commission and service income.
GST reporting: Accurate SAC details support applicable invoice and return-reporting requirements.
GST Calculation Example for Real Estate Brokerage
Suppose a real estate agent earns ₹50,000 as commission for arranging a property sale.
Assuming the brokerage service attracts 18% GST:
| Particulars | Amount |
|---|---|
| Brokerage commission | ₹50,000 |
| GST at 18% | ₹9,000 |
| Total invoice amount | ₹59,000 |
For an intra-state supply, the GST amount would generally be divided into ₹4,500 CGST and ₹4,500 SGST.
For an inter-state supply, IGST of ₹9,000 would generally apply.
This example applies to brokerage commission, not the value of the property being sold. The actual place of supply and tax treatment must be determined under the relevant GST provisions.
Create GST Invoices for Real Estate Services with myBillBook
Real estate agents, property managers and businesses providing taxable rental or consultancy services need accurate billing records and appropriate SAC classifications.
With myBillBook’s GST billing software, businesses can create invoices for brokerage commissions, property management charges and other taxable services.
Businesses can search for relevant HSN/SAC codes while preparing invoices, record applicable GST rates, maintain customer details and track outstanding payments.
The correct SAC code, GST rate and tax-payment mechanism should be verified before issuing an invoice.
Frequently Asked Questions About Real Estate SAC Codes
What is the SAC code for real estate services?
The main SAC heading for real estate services is 9972. Specific services such as residential rental, commercial rental, brokerage and property management have different six-digit SAC codes.
What is SAC 997211?
SAC 997211 covers rental or leasing services involving owned or leased residential property.
What is SAC 997212?
SAC 997212 covers rental or leasing services involving owned or leased non-residential property, including commercial premises.
What is the SAC code for real estate brokerage?
SAC 997222 covers brokerage and agency services related to buildings, while SAC 997223 covers brokerage services related to land.
Is GST applicable to real estate brokerage?
Real estate brokerage services generally attract 18% GST when taxable. This applies to the brokerage service rather than automatically to the property’s sale value.
Is GST applicable to residential rent?
Residential rent may be exempt when the applicable conditions are met. Renting a residential dwelling to a GST-registered person can attract GST under reverse charge, subject to the relevant exceptions.
Is GST applicable to commercial property rent?
Commercial property rental generally attracts 18% GST when taxable. Reverse charge may apply in specified cases, including certain rentals by unregistered suppliers to registered recipients.
Is GST applicable to the sale of land?
No. The sale of land is treated as neither a supply of goods nor a supply of services under Schedule III of the CGST Act.
Is HSN code 9971 used for real estate services?
No. Heading 9971 covers financial and related services. Real estate services are classified under SAC heading 9972.
Sources
- GST Council – Scheme of Classification of Services
- GST Council – Explanatory Notes to Classification of Services
- CBIC – GST Rates and Notifications
- GST Portal – HSN/SAC Search
- CGST Act, 2017 – Schedule III
Last Reviewed: 23 October 2026
