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SAC 997212
SAC Code for Rent and GST on Rent
Renting of immovable property falls under SAC 9972. Commercial (non-residential) rent is 997212 and attracts 18% GST. Residential rent is 997211 and is exempt when let for use as a residence, except when the tenant is a GST-registered person, who then pays 18% under reverse charge.
- SAC code
- 997212
- GST rate
- 18% / Exempt
- Rates as of
- GST 2.0 (from 22 Sep 2025)
- Last checked
Rent SAC code list with GST rates
| SAC code | Description | GST |
|---|---|---|
| 997212 | Rent of shops, offices, warehouses and other commercial property | 18% |
| 997211 | Rent of a residential dwelling to an unregistered person for residence | Exempt |
| 997211 | Rent of a residential dwelling to a registered person (tenant pays under RCM) | 18% (RCM) |
GST on commercial rent
A shop rented at ₹50,000 a month attracts ₹9,000 GST at 18% if the landlord is registered. Landlords must register once total rent and other supplies cross ₹20 lakh a year (₹10 lakh in special category states).
Tenants paying high rent may also need to deduct TDS under Section 194I or 194-IB.
GST calculator for rent
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Frequently Asked Questions
What is the SAC code for rent?
997212 for commercial (non-residential) property and 997211 for residential property.
What is the GST rate on commercial rent?
18%.
Is GST charged on residential rent?
No, when let to an individual for residence. If the tenant is GST-registered, the tenant pays 18% under reverse charge.
What is the SAC code for office rent?
997212, at 18%.
Does a landlord need GST registration?
Yes, once aggregate turnover including rent exceeds ₹20 lakh a year (₹10 lakh in special category states).
Is TDS deducted on rent along with GST?
TDS under Section 194I or 194-IB may apply, generally on the rent excluding GST when GST is shown separately.
How many digits of the HSN or SAC code must be shown on an invoice?
Businesses with aggregate turnover up to ₹5 crore must show 4 digits on B2B invoices; above ₹5 crore, 6 digits are mandatory on all invoices.
What happens if the wrong HSN or SAC code is used?
A wrong code can lead to the wrong tax rate, mismatches in returns and possible demands with interest and penalty. Correct the classification and, if tax was underpaid, pay the difference with interest.
Where can the GST rate for a code be verified?
Check the current CBIC rate notifications for the exact tariff entry, description and conditions. Rates on this page reflect GST 2.0, effective 22 September 2025.
Is this page an official classification ruling?
No. Taxzentic is an independent reference. Classification depends on the exact product or service; seek professional advice or an advance ruling for disputed items.