GST · SAC 997212 · FY 2026–27

SAC 997212: Rental of commercial property

SAC 997212 (Rental of Own or Leased Non-Residential Property) is taxed at 18% GST: 9% CGST + 9% SGST when you and your client are in the same state, 18% IGST when you are not, and 0% on exports under a Letter of Undertaking (LUT). Covers: Rental income from owned commercial real estate.

Rate source: Notification 11/2017-Central Tax (Rate), Heading 9972

18%

Domestic
0% export (LUT)

Heading

9972 — Other Professional

Domestic rate

18% (9+9 / IGST)

Export (LUT)

Reverse charge

No — forward charge

What falls under 997212

The CBIC Scheme of Classification defines 997212 as "Rental or leasing services involving own or leased non-residential property" — renting out offices, retail spaces and industrial properties. Renting a residential dwelling is a different code, 997211.

Commercial office rental

Retail space rental

Co-working space rental

On the invoice

Invoice INV-0092SAC 997212

Commercial office rental₹60,000

CGST @ 9% + SGST @ 9% (same state — else IGST 18%)+ ₹10,800

Amount due₹70,800

Same work for a foreign client under LUT: IGST 0%, with the zero-rating declaration on the face of the invoice.

Manish, a Jaipur-based property owner (RJ, state code 08), leases a commercial office unit to a Jaipur startup (RJ, state code 08). Rs. 60,000 monthly rent. Commercial rent attracts GST — intra-state → CGST 9% + SGST 9%.

Put this code on a real invoiceFree GST invoice generator — SAC prefilled, CGST-SGST vs IGST resolved from the client's state. No signup.

FAQ

Do I have to print the SAC code on my invoices?

Depends on turnover: up to Rs. 5 crore, the 4-digit SAC (9972) is enough on B2B invoices; above that, 6 digits are required. Printing the full 6-digit code (997212) everywhere is simplest and never wrong.

Under Rs. 20 lakh turnover — do I need to register and charge 18%?

Below Rs. 20 lakh aggregate turnover, registration is optional for pure service providers — you invoice without GST entirely. The Rs. 10 lakh threshold applies in only four special-category states (Manipur, Mizoram, Nagaland, Tripura), not the eleven usually listed online. Once registered, 18% applies to every domestic invoice regardless of turnover.

Wrong SAC code on past invoices — how bad is it?

If the rate charged was right, it is a clerical issue — fix it going forward. A wrong code with a wrong rate is the real problem; that needs a credit note and a corrected invoice. Mismatched SACs also cause GSTR-1 Table 12 disclosure issues and can trigger ITC audit queries at the client end.

Does SAC 997212 change under GST 2.0?

No. The September 2025 rate rationalisation reshuffled the goods slabs; professional and technical services stayed at the 18% standard rate, and export zero-rating under LUT is unchanged.

Notification reference: Notification 11/2017-CT(R) dated 28 June 2017 — the services rate table, at the serial for the code's heading (9982, 9983, 9985, 9992 or 9996 as applicable), as amended, including by Notification 15/2025-CT(R) (GST 2.0, from 22 September 2025).

For the CA reading this

The deadline sheet you already send, with your name on it

Every statutory date for the month — GST returns, advance tax, and the dates your client's own customers owe them: when the TDS they withheld must reach the department, and when the certificate is due. Add your firm's name and forward it as it stands. No signup, no email, nothing to accept.

Firm name (optional)Month

Download the image

The image is the one that travels on WhatsApp. Dates are statutory, not advice — the sheet says which rows bind whom.

Sources

Rates as notified for FY 2026–27 and can change. General information, not tax advice. Verify with your CA before you file.

Billing 997212 as a freelancer

Use Case

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