What is the GST on an under-construction flat?

5% of the price without input tax credit, or 1% for affordable housing, meaning up to ₹45 lakh with carpet area up to 60 square metres in metros or 90 elsewhere.

Is GST charged on stamp duty?

No. Stamp duty and registration fees are state levies, paid separately from GST.

Is there GST on society maintenance charges?

Only if the monthly charge per flat exceeds ₹7,500 and the society's annual turnover exceeds ₹20 lakh. Then 18% applies to the whole amount.

Is GST charged on a home loan?

There is no GST on the interest. Processing fees and other charges carry 18%.

GST on buying a flat or house

Q: Is GST payable on a ready-to-move flat?

No, if the entire price is paid after the completion certificate is issued or after first occupation. Resale flats also carry no GST.

Updated 11 October 2026

An under-construction flat carries 5% GST on its price, or 1% if it qualifies as affordable housing, and the builder cannot claim input tax credit. A ready-to-move-in home sold after the completion certificate is issued, and any resale flat, carries no GST. Stamp duty and registration are separate state charges that apply either way.

GST on property at a glance

Purchase	GST
Under-construction flat, not affordable housing	5%, no input tax credit for the builder
Under-construction affordable flat	1%, no input tax credit for the builder
Ready flat, entire price paid after the completion certificate or first occupation	Nil
Resale flat bought from an owner	Nil
Plot of land	Nil on the land itself
Stamp duty and registration charges	No GST (state levies)
Home loan interest	No GST
Home loan processing fee	18%

These rates for residential projects have applied since 1 April 2019, and GST 2.0 in September 2025 did not change them. Commercial property such as shops and offices follows different rules, often with input tax credit, so read the builder's invoice carefully.

What counts as affordable housing

A flat gets the 1% rate only if both conditions hold:

carpet area up to 60 square metres in a metropolitan city (Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata and the Mumbai Metropolitan Region), or up to 90 square metres elsewhere; and
gross amount charged up to ₹45 lakh.

A ₹50 lakh flat of 55 square metres in Mumbai therefore pays 5%, because it fails the price test.

How the 5% is worked out

A flat's price includes the land under it, and land is outside GST. The law deems one-third of the price to be the value of land and charges 7.5% on the remaining two-thirds (1.5% for affordable housing). That comes to exactly 5% (or 1%) of the full price, which is why builders usually show 5% on the total. Some invoices instead show CGST 3.75% and SGST 3.75% on two-thirds of the price; the amount is the same.

When the completion certificate matters

GST applies to construction that is still going on. If the entire price is paid after the completion certificate is issued (or after first occupation, if earlier), the deal is a sale of a building, which is outside GST. If you book and pay before the certificate, the deal is treated as a supply of construction services and GST applies; builders charge it on each instalment as it falls due, at the same 5% or 1%.

Other charges on a new flat

Car parking, floor rise and preferential location charges collected as part of the flat price are generally taxed at the same rate as the flat.
Advance maintenance collected by the builder is a separate service, usually at 18%.
Society maintenance: a resident welfare association charges 18% only if a member's monthly contribution exceeds ₹7,500 and the association's annual turnover exceeds ₹20 lakh. Above ₹7,500, GST applies to the whole amount, not just the excess. The limit applies per flat, so an owner of two flats paying ₹7,500 for each pays no GST.
Stamp duty and registration: no GST, but they are worked out on the property value at state rates.

Worked example.
Under-construction flat at ₹80,00,000: GST at 5% is ₹4,00,000 (the same as 7.5% on two-thirds: ₹53,33,333 × 7.5% = ₹4,00,000), so the cost is ₹84,00,000 before stamp duty.
Affordable flat in Pune at ₹40,00,000 with 70 square metres of carpet area: Pune is outside the metro list, so the 90 square metre limit applies. GST at 1% is ₹40,000.
Ready flat at ₹80,00,000, completion certificate issued before booking: GST is nil, ₹4,00,000 less than the first case.
Society maintenance of ₹9,000 a month in a large society: GST at 18% is ₹1,620 a month. At ₹7,500 a month it would be nil.

Why builders cannot claim input tax credit

The 5% and 1% rates come without input tax credit, so the GST a builder pays on cement, steel and contractors becomes part of its cost and is built into the price. GST 2.0 cut the rate on cement from 28% to 18% from 22 September 2025, which lowered construction costs, but whether flat prices fell depends on each builder. For the income-tax side of buying a home, see home loan tax benefits, and use the GST calculator to check the GST on a quoted price. The rate notifications are on the CBIC GST site.