GST on Flat Purchase in India — Rates, Calculation & Exemptions (2026)

Updated: 3 June 2026 | Notification No. 11/2017-CT (Rate) & 33rd GST Council

Under-construction flats attract 5% GST (affordable housing) or 5% GST (other residential) calculated on 2/3 of the agreement value. Ready-to-move-in flats with an Occupation Certificate have zero GST — only stamp duty applies. Builders cannot claim ITC at the 5% rate.

2/3

GST applies on only 2/3 of flat value
1/3 is deemed land cost — excluded from GST base per Notif. 11/2017

GST Rate Chart — Residential Property

Property Type	GST Rate	ITC for Builder	Condition
Affordable housing (under-construction)	5%	No	Carpet ≤60sqm metro / ≤90sqm non-metro & value ≤₹45L
Other residential (under-construction)	5%	No	All other under-construction flats
Ready-to-move-in (OC/CC received)	0% (No GST)	N/A	Occupation/Completion Certificate issued
Commercial property (under-construction)	12%	Yes	Offices, shops, commercial spaces
Parking space (with flat)	Same as flat	No	Included in agreement

How to Calculate GST on Your Flat — Step-by-Step

The government deems 1/3 of the total consideration to represent the land component, which is excluded from GST. So the formula is straightforward:

Agreement Value	Type	GST Base (2/3)	GST @5%	Total Outgo
₹30,00,000	Affordable	₹20,00,000	₹1,00,000	₹31,00,000
₹60,00,000	Non-affordable	₹40,00,000	₹2,00,000	₹62,00,000
₹1,00,00,000	Non-affordable	₹66,66,667	₹3,33,333	₹1,03,33,333
₹80,00,000	Ready-to-move (OC)	N/A	₹0	₹80,00,000 + stamp duty

Affordable Housing — Criteria in Detail

Both conditions must be met simultaneously for a property to qualify as affordable housing under GST:

Criterion	Metropolitan Cities	Non-Metropolitan Cities
Carpet Area	Up to 60 sq. metres	Up to 90 sq. metres
Gross Value (all inclusive)	Up to ₹45 lakh	Up to ₹45 lakh

Metropolitan cities for this purpose: Delhi NCR (Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Mumbai (including Mumbai Metropolitan Region), Bengaluru, Chennai, Hyderabad, and Kolkata.

Stamp Duty and Registration — Separate from GST

In addition to GST (on under-construction flats), buyers must pay stamp duty and registration charges to the state government. These are calculated on the full agreement value or the circle rate (whichever is higher) and are completely separate from GST.

State	Stamp Duty (approx.)	Registration Charges
Maharashtra	5–6%	1% (max ₹30,000)
Delhi	4% (women) / 6% (men)	1%
Karnataka	5%	1%
Tamil Nadu	7%	1%
Uttar Pradesh	7%	1%

Frequently Asked Questions

What is the GST rate on purchase of a flat or apartment in India?

GST on flat purchase depends on whether the property is under construction or ready-to-move-in. For under-construction properties, there are two rates: (1) Affordable housing — 5% GST without Input Tax Credit for the builder. A property is classified as affordable if the carpet area is up to 60 square metres in metropolitan cities (Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata) or up to 90 square metres in non-metropolitan cities, AND the gross value does not exceed ₹45 lakh. (2) Other residential properties (non-affordable under-construction flats) — 5% GST without ITC (revised from 12% effective 1 April 2019 per the 33rd GST Council recommendation). Before April 2019, the rate was 12% with ITC. Ready-to-move-in flats that have received the Occupation Certificate (OC) or Completion Certificate (CC) from the municipal authority are completely outside the GST net — they are treated as sale of immovable property, attracting only stamp duty and registration charges under state laws, not GST.

How is GST calculated on a flat — what is the actual taxable value?

GST is not charged on the full agreement value of the flat because the government recognises that land itself is not a supply of goods or services and hence is not taxable under GST. As per Notification No. 11/2017-CT (Rate), one-third (1/3) of the total consideration (agreement value) is deemed to represent the cost of land and is excluded from GST. Therefore, the GST base is only two-thirds (2/3) of the total agreement value. Formula: GST Value = (2/3) × Agreement Value. GST Amount = GST Rate × GST Value. Example: If you buy a flat for ₹60 lakh (under-construction, non-affordable): GST Value = 2/3 × ₹60L = ₹40L. GST at 5% = ₹2L. If the flat is in affordable housing: Same formula — GST Value = ₹40L. GST at 5% = ₹2L. Parking space, if included in the agreement, is taxed at the same rate as the flat. Separate charges for club membership or amenities may attract different GST rates and should be reviewed individually.

Is there GST on a ready-to-move-in flat that has an Occupation Certificate?

No, there is absolutely no GST on the purchase of a ready-to-move-in flat that has received the Occupation Certificate (OC) or Completion Certificate (CC) from the competent municipal authority. Under Schedule III of the CGST Act, 2017, sale of land and completed buildings is treated as neither a supply of goods nor a supply of services. This means it falls outside the GST framework entirely. The logic is that once a building has received its completion certificate, the construction activity is deemed to have concluded, and what is being sold is purely immovable property. For such transactions, the buyer only pays stamp duty (ranging from 5-7% in most states) and registration charges to the state government. Builders sometimes market near-complete units as "ready to move in" to avoid GST — however, the key legal test is receipt of the official Occupation Certificate. If OC has not been issued, the flat is still legally under construction and GST applies, regardless of physical completion.

Can the builder claim Input Tax Credit on construction materials under the 5% GST scheme?

No, under the revised GST rates effective 1 April 2019, builders who opt for the 5% rate on residential under-construction properties cannot claim Input Tax Credit on inputs like cement, steel, sand, bricks, tiles, electrical fittings, plumbing materials, or services like labour contractor charges. This was a deliberate trade-off made by the GST Council — lower rate for buyers, no ITC benefit for builders. Under the old scheme (before 1 April 2019), builders had the option of 12% GST with ITC. Projects that had commenced before 1 April 2019 were given a one-time option to continue with the 12% + ITC regime for the remaining units. For commercial properties (offices, shops), the rate is 12% GST with ITC available to the builder. Buyers of commercial units can, in turn, claim ITC on the 12% GST paid if the property is used for their taxable business activities — this is a significant advantage over residential properties where the end buyer gets no ITC benefit.

What taxes does a flat buyer pay apart from GST — stamp duty, registration, and other charges?

A flat buyer in India is subject to multiple levies beyond GST. Stamp duty is a state government levy payable on the sale deed/conveyance deed, typically ranging from 4% to 7% of the agreement value depending on the state. Stamp duty is calculated on the full agreement value (not 2/3 like GST) and includes the land component. Registration charges are typically 0.5% to 1% of the agreement value and are paid to the state Sub-Registrar office for registering the property in your name. These charges are outside GST and are not eligible for any GST set-off. Other common charges: (a) Maintenance deposit to housing society — may attract 18% GST if the monthly maintenance exceeds ₹7,500 per unit, (b) Preferred location charges (PLC) — taxed at same rate as the flat (5%), (c) Club membership fees — 18% GST typically, (d) Legal/documentation charges — 18% GST. TDS under Section 194-IA of Income Tax Act at 1% is applicable if the flat value exceeds ₹50 lakh — the buyer deducts this from the consideration payable to the builder/seller.

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