9972 Real estate services
Heading 9972 of the SAC classification covers real estate services. The schedule writes 3 entries against it, ranging from Nil to 18%, with 18% as the residual rate when no specific entry matches.
- Residual rate18%
- Service codes9
- Schedule entries3
Renting, leasing, selling and managing property, whether the supplier owns it or acts on a fee or commission basis. Renting a residential dwelling for use as a residence stays outside the tax net, while commercial renting is fully taxable and can fall under reverse charge.
Is this the right heading for your service?Confirm the code and the rate with an advisor, freeGST rate for SAC 9972
The rate schedule is written against the heading, so these entries govern every service code under 9972. The entry that applies is the one whose description actually matches the supply.
- Nil applies here
- 1.5%
- 5%
- 7.5%
- 12%
- 18% applies here
- 40%
| Entry | What it covers | GST rate | CGST + SGST | Input tax credit |
|---|---|---|---|---|
| (i) | Lease of land by the Central Government, a State Government, a Union territory or a local authority to a governmental authority or a Government entity. | Nil | No tax | Not applicable |
| (ii) | Supply of land or an undivided share of land by way of lease or sub-lease, forming part of a composite supply of construction of flats, to the extent of one-third of the total amount charged. The deemed one-third land value is not taxable; the balance is taxed as construction service under heading 9954. | Nil | No tax | Not applicable |
| (iii) Residual | Real estate services other than the above, including renting or leasing of commercial property and services on a fee or commission basis. | 18% | 9% + 9% | Credit available |
More than one entry can apply here. The one that governs is the entry whose description actually matches the supply; where none does, the residual entry sets the rate.
Rates shown here are as published in GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) and are reproduced for reference. The GST Council revises rates through notifications, including the rate rationalisation effective 22.09.2025 that withdrew the 12% and 28% slabs for most services and introduced a 40% rate for a short list of them. Always verify the current rate and the conditions attached to it on the CBIC GST rates page or the CBIC tax information portal before invoicing or filing. Rates exclude any applicable cess. IncorpX provides assistance for GST registration and return filing if you need help.
Exempt supplies under 9972
Where an exemption applies it beats the rate schedule, so check these before reading a rate off the table above.
Some supplies under this heading carry no GST at all. An exemption removes the charge rather than setting a rate, so it overrides the schedule where it applies.
- Services by way of renting a residential dwelling for use as a residence, except where it is rented to a registered person. Notification 12/2017-CT(R), entry 12
- Services by way of renting of precincts of a religious place meant for the general public, subject to the notified rent thresholds. Notification 12/2017-CT(R), entry 13
Source: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate). Exemptions carry conditions and definitions of their own, so read the notification entry before relying on one.
Reverse charge under 9972
On these supplies the recipient pays the GST. The supplier's invoice carries no tax, which is exactly why the mistake is so easy to make in both directions.
On these supplies the recipient pays the GST, not the supplier. The supplier issues an invoice without charging tax and notes that tax is payable under reverse charge; the recipient pays it in cash and claims credit separately if eligible.
Renting of any immovable property other than residential property.
- Supplier
- Any unregistered person
- Pays the tax
- Any registered person
Renting of a residential dwelling.
- Supplier
- Any person
- Pays the tax
- A registered person
Renting of immovable property supplied by the Central Government, a State Government, a Union territory or a local authority.
- Supplier
- Central Government, State Government, Union territory or local authority
- Pays the tax
- Any registered person
Source: Services taxable under reverse charge, Notification 13/2017-Central Tax (Rate) as amended. Separately from the entries above, any service bought from a supplier outside India is taxable under reverse charge in the recipient's hands, whatever code it carries. Reverse charge entries are amended often, so confirm the current position before you raise or accept an invoice.
9 service codes under 9972
Grouped the way the classification groups them. Open the group that matches your kind of service, then pick the code whose official description covers what you supply.
9972 1Real estate services involving owned or leased property5
9972 2Real estate services on a fee/commission basis or contract basis4
Where SAC 9972 is used
The same code, at different digit lengths, runs through your invoices, returns and registration.
Rule 46 requires the SAC code on the invoice for every service line, next to its description and value.
Get assistanceThe HSN/SAC summary table of GSTR-1 reports each code with its taxable value and tax: 4 digits up to Rs. 5 crore aggregate turnover, 6 digits above it.
Get assistanceThe services you supply are described with SAC codes when the registration application is prepared for the GST portal.
Get assistanceThe e-invoice schema validates the SAC field before the IRP returns an IRN, so a wrong code fails at generation rather than at assessment.
Get assistance- Classification: Scheme of Classification of Services, Annexure to Notification 11/2017-Central Tax (Rate), Central Board of Indirect Taxes and Customs (cbic-gst.gov.in).
- Rates: GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) (CBIC rate finder).
- Exemptions: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate).
- Reverse charge: Services taxable under reverse charge, Notification 13/2017-Central Tax (Rate) as amended.
- Current position: GST Council notifications published on the CBIC tax information portal.
This directory reproduces government classifications and rate entries for reference. The official gazette and CBIC notifications remain the authoritative sources. IncorpX provides assistance for registrations and filings that use these codes and does not issue the classification or the rates itself.
Get the SAC code and GST rate right the first time
The wrong code can mean the wrong rate, a mismatched GSTR-1 summary or an e-invoice that fails at the portal. Tell us what you supply and an advisor will help you confirm the classification, the rate and the credit position, then assist with the filings that use them.
- Code and rate checked against the notification text, not a guess
- Reverse charge and input tax credit position explained for your case
- Assistance with GST registration and returns, filed in your name
- Free first consultation, no obligation
Get Expert Consultation
Talk to our business executives in minutes
Guides and resources
The invoicing and return rules that decide how this code is actually used.
SAC 9972 questions
What does SAC heading 9972 cover?
Heading 9972 of the SAC classification covers real estate services. The schedule writes 3 entries against it, ranging from Nil to 18%, with 18% as the residual rate when no specific entry matches.
What is the GST rate for heading 9972?
It depends on which entry of the schedule matches the supply. Heading 9972 carries 3 entries at rates from Nil to 18%. Where no entry specifically matches, the residual entry applies and the rate is 18%. Several concessional entries are conditional on not taking input tax credit, so read the credit column before choosing.
Are any services under heading 9972 exempt from GST?
Yes. 2 exempt entries touch this heading, including services by way of renting a residential dwelling for use as a residence, except where it is rented to a registered person. An exemption removes the charge rather than setting a rate, so where it applies it overrides the rate schedule.
Does reverse charge apply to services under heading 9972?
Yes, for 3 notified categories. Where reverse charge applies the supplier issues an invoice without charging GST and the recipient pays the tax directly and claims credit separately if eligible. The exact categories are listed on this page.
How many digits of SAC 9972 do I report?
Report all 4 digits of 9972 on invoices and in the GSTR-1 summary if your aggregate turnover is up to Rs. 5 crore, and the full 6-digit code above that. Pick the 6-digit code from the list on this page.
Nebin Binoy 
