Real estate services have always been an important component of the Indian economy. With the implementation of GST, the real estate sector has undergone a major transformation. The GST Council has introduced various tax rates and SAC codes for different types of real estate services.
In this article, we will discuss the GST rates and SAC code 9972 for real estate services in India.
The GST rates for real estate services have been classified into three categories – residential, commercial, and industrial. Let’s take a look at the GST rates for each of these categories.
The GST rate for residential real estate services is 5% without input tax credit (ITC). However, if the construction of a residential unit is completed before the implementation of GST, the GST rate is not applicable.
The GST rate for commercial real estate services is 12% with ITC. This rate is applicable for the construction of commercial properties such as offices, shops, and other non-residential buildings.
Industrial Real Estate Services
The GST rate for industrial real estate services is also 12% with ITC. This rate is applicable for the construction of factories, warehouses, and other industrial buildings.
SAC code 9972 is used for real estate services. This code covers a wide range of services related to real estate such as construction, sale, purchase, leasing, and renting of property. The SAC code 9972 is further divided into various sub-headings based on the type of service provided.
SAC Code 997211 – Construction services of single dwelling or multi-dwelling residential buildings
SAC Code 997212 – Construction services of other residential buildings such as old age homes, hostels, and orphanages
SAC Code 997213 – Construction services of non-residential buildings such as offices, shops, and other commercial buildings
SAC Code 997214 – Construction services of industrial buildings such as factories and warehouses
SAC Code 997215 – Sale, purchase, leasing, and renting of residential properties
SAC Code 997216 – Sale, purchase, leasing, and renting of commercial properties
SAC Code 997217 – Sale, purchase, leasing, and renting of industrial properties
In conclusion, the implementation of GST has brought about significant changes in the real estate sector. The GST rates and SAC codes for real estate services have been redefined to make the sector more transparent and efficient. It is important for real estate service providers to be aware of these changes and comply with the GST regulations to avoid any legal complications.
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