Short answer: an under-construction flat carries 5% GST, or 1% if it qualifies as affordable housing. A flat that already has its completion or occupancy certificate carries no GST. The builder can’t claim input tax credit at these rates, so the rate you see is the rate you pay.
The three rates
| Flat | GST |
|---|---|
| Under construction, affordable (both tests below) | 1% |
| Under construction, all others | 5% |
| Ready to move, sold after the completion certificate; or a resale flat | 0% |
The 5% and 1% are effective rates on the agreement value: the deduction for the land is already built into them.
What counts as affordable
Both conditions must hold:
- Carpet area up to 60 sq m in the metros (Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata and Mumbai including MMR), or up to 90 sq m anywhere else.
- Price up to ₹45 lakh.
Five flats, worked out
| Flat | Rate | GST |
|---|---|---|
| Pune, 80 sq m, ₹42 lakh affordable: up to 90 sq m outside a metro, and up to ₹45 lakh | 1% | ₹42,000 |
| Mumbai, 65 sq m, ₹44 lakh over 60 sq m in a metro | 5% | ₹2,20,000 |
| Jaipur, 85 sq m, ₹48 lakh over ₹45 lakh | 5% | ₹2,40,000 |
| Bengaluru, 110 sq m, ₹1.2 crore | 5% | ₹6,00,000 |
| Ready to move, ₹90 lakh completion certificate already issued | 0% | ₹0 |
GST on the extra charges
- Parking, preferential location (PLC) and compulsory club charges that are part of the sale agreement take the same rate as the flat.
- Maintenance charges collected by the builder are a separate service and are usually billed at 18%.
- Stamp duty and registration are paid to the state, not the builder, and carry no GST.
Paid in stages
GST is charged on each demand as you pay it. If the completion certificate is issued before your last instalments, the amounts you pay after it usually carry no GST; ask the builder to show this on the final demand. The builder payment plan tracker shows the GST on every stage, and the 1% TDS if your flat costs ₹50 lakh or more (see TDS on a flat above ₹50 lakh).
Questions people ask
Is GST charged on a resale flat?
No. GST applies only when a builder sells a flat before its completion certificate. A resale between two owners has no GST.
Can I claim the GST back?
No. A home buyer can’t claim input tax credit on GST paid for a flat.
Is TDS calculated on the GST too?
When the builder shows GST separately, TDS is usually worked out on the amount before GST. Check with your builder or CA if the invoice is unclear.