Renting of residential and commercial property.
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Rent falls under SAC 9972.
Rent is SAC 9972: 997211 for residential and 997212 for commercial property. Renting a house to a family is exempt, but commercial rent is taxed at 18%. Two reverse charge rules apply: a registered tenant of a residential dwelling pays the 18% itself, and since 10 October 2024 a registered tenant of commercial property pays the tax when the landlord is unregistered.
| Code | Description |
|---|---|
| 997211 | Rental or leasing of own or leased residential property |
| 997212 | Rental or leasing of own or leased non residential property (shops, offices, warehouses) |
The GST rate on rent is exempt or 18%. Residential dwelling rented for use as a residence: exempt, except when rented to a GST registered person, who pays 18% under reverse charge. Commercial property: 18%; when an unregistered landlord rents to a registered business, the tenant pays under reverse charge.
| GST rate | Within a state | Between states |
|---|---|---|
| 18% | CGST 9% + SGST 9% | IGST 18% |
Compare other goods on the GST rates list.
The number of digits depends on your aggregate turnover in the previous financial year.
| Turnover last year | Digits | Write |
|---|---|---|
| Up to Rs 5 crore | 4 on B2B invoices, optional on B2C | 9972 |
| Above Rs 5 crore | 6 on every invoice | 997211, 997212 |
Here is how a line for rent looks on a tax invoice within one state: 1 × month of shop rent at Rs 60,000.00 each, taxed at 18%. The figures are an example, not a market price.
| Item | SAC | Qty | Rate (Rs) | Taxable (Rs) | CGST (Rs) | SGST (Rs) | Total (Rs) |
|---|---|---|---|---|---|---|---|
| Rent | 9972 | 1 × month of shop rent | 60,000.00 | 60,000.00 | 5,400.00 | 5,400.00 | 70,800.00 |
Sold to a buyer in another state, the same line carries IGST of Rs 10,800.00 instead of CGST and SGST. Make the full invoice with the GST invoice format: it fills in the tax split, round off and amount in words.
Chapter 99 (Services (SAC)) covers: Services under GST, coded with a Services Accounting Code (SAC) that starts with 99.
Other pages in chapter 99
Products often bought, sold or invoiced together with rent:
Rent falls under SAC 9972: renting of residential and commercial property. Common 6 digit codes are 997211 for rental or leasing of own or leased residential property and 997212 for rental or leasing of own or leased non residential property (shops, offices, warehouses).
Residential dwelling rented for use as a residence: exempt, except when rented to a GST registered person, who pays 18% under reverse charge. Commercial property: 18%; when an unregistered landlord rents to a registered business, the tenant pays under reverse charge.
If your aggregate turnover in the previous financial year was up to Rs 5 crore, write the 4 digit code 9972 on B2B invoices (optional on B2C invoices). Above Rs 5 crore, write 6 digits, such as 997211, on every invoice.
Rates checked on 13 October 2026 against the GST rate notifications in force (GST 2.0 from 22 September 2025). Descriptions are in our own words and are a guide, not a ruling: for a disputed or high value item, check the notification or ask your tax adviser.