GST Rate Summary — All Property Types
| Property Type | GST Rate | ITC Available? |
|---|---|---|
| Under-construction residential (regular) | 5% | No |
| Affordable housing under-construction | 1% | No |
| Ready-to-move with Occupancy Certificate | 0% | N/A |
| Ready-to-move without OC (rare) | 5% | No |
| Commercial property (under-construction) | 12% | Yes (if for business use) |
| Resale residential property | 0% | N/A |
| Land purchase | 0% | N/A |
| Plot + construction package | 5% on construction value only | No |
Affordable Housing GST — Who Qualifies?
The 1% GST rate for affordable housing applies when ALL of these conditions are met:
| Parameter | Metro Cities (Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kolkata, Pune, Ahmedabad) | Non-Metro Cities |
|---|---|---|
| Carpet area limit | Up to 60 sq m | Up to 90 sq m |
| Value limit | Up to ₹45 lakh | Up to ₹45 lakh |
| GST rate | 1% | 1% |
Ready-to-move advantage: On a ₹1 crore flat, choosing ready-to-move (with OC) over under-construction saves ₹5 lakh in GST. This is a significant cost difference — factor GST into your total cost comparison when evaluating under-construction vs ready properties.
Related Terms
Frequently Asked Questions
GST applies on under-construction properties at 5% (regular residential) or 1% (affordable housing). Ready-to-move properties with an Occupancy Certificate are fully exempt from GST. Commercial under-construction properties attract 12% GST. Land purchases are exempt. No input tax credit is available to individual home buyers.
No. Ready-to-move flats with an Occupancy Certificate are completely exempt from GST. GST applies only on under-construction properties where OC has not been obtained. If a builder is trying to charge GST on a property that already has OC, that is incorrect — the transaction is effectively a resale of a completed property.
1% GST applies on under-construction affordable housing — where carpet area is up to 60 sq m in metro cities (or 90 sq m in non-metros) AND value is up to ₹45 lakh. Both conditions must be met. If the property value exceeds ₹45 lakh, the standard 5% rate applies even if the carpet area is within limits.
No. Individual home buyers purchasing a flat for residential use cannot claim Input Tax Credit (ITC) on GST paid. The 5% GST on under-construction properties is a sunk cost for the buyer. Businesses purchasing commercial property for their operations can claim ITC on the 12% GST.
No. GST and stamp duty are completely separate levies. Stamp duty is a state government tax on the transaction document; GST is a central + state tax on the supply of under-construction property services. Both are payable separately — GST to the builder, stamp duty to the state Sub-Registrar at registration.