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GST on Real Estate Agent — 18% Commission, Registration & ITC Rules

Updated: 3 June 2026  |  CGST Act  |  SAC 9972

Real estate broker/agent commission: 18% GST (SAC 9972). GST is on the commission amount, not property value. Register if annual commission >₹20L. ITC available on office expenses. Property sale itself (completed flat): no GST. TDS on commission: Section 194H at 5%.
18% GST
Real estate broker commission: 18% GST on the fee amount. Mandatory registration above ₹20L annual turnover.
Under-construction flat GST (5%/12%) is separate — charged by builder. Society maintenance above ₹7,500/month/member: also 18% GST. ITC claimable on advertising, office, professional fees.

Real Estate Services GST Rates

ServiceGST RateNotes
Broker/agent commission18%On commission amount
Property management fee18%SAC 9972
Under-construction flat (affordable)5%Builder's GST, not agent
Under-construction flat (other)12%Builder's GST
Ready-to-move flat saleNil GSTStamp duty applies
Commercial property sale (resale)Nil GSTStamp duty applies
Society maintenance (≤₹7,500/month)ExemptPer member threshold
Society maintenance (>₹7,500/month)18%On full amount

Frequently Asked Questions

What is GST on real estate agent and broker services?
Real estate agent/broker services (SAC 9972): 18% GST on commission and brokerage charges. This applies to: Property brokers charging buyers/sellers commission, real estate agents facilitating transactions, property management companies charging a management fee, rental property agents. Key: GST is charged on the COMMISSION AMOUNT (not on property value). Example: Property value ₹1Cr, broker commission 2% = ₹2L. GST at 18% on ₹2L = ₹36,000. Buyer pays ₹2L + ₹36,000 = ₹2,36,000 to broker. The property transaction itself (sale of completed flat/plot): not subject to GST (it's immovable property transfer, taxed under stamp duty). Under-construction flat: GST applies on flat purchase (5% or 12%) — this is the builder's GST, separate from broker commission GST.
Do real estate agents need to register for GST?
GST registration for real estate agents: Mandatory if annual commission/brokerage turnover exceeds ₹20 lakh. Threshold: ₹20L for services (₹10L in special category states). If annual commission < ₹20L: no mandatory registration. Voluntary registration: can register below threshold — allows ITC claims on business expenses. Real estate agents are NOT covered by composition scheme (composition is not available for service providers other than certain categories). Agent facilitating sale of under-construction flats: considered an intermediary service — 18% GST on commission. Agent facilitating sale of completed/ready-to-move property: 18% GST on commission (even though the property transaction has no GST). Reverse charge: if the builder is registered and the agent is unregistered — no automatic RCM on agent commission (agent commission is not in the RCM list under Section 9(3)).
Can a real estate agent claim ITC on business expenses?
ITC for registered real estate agents: Real estate agents charging 18% GST on commission CAN claim ITC on their business expenses: Office rent (18% GST): eligible ITC. Internet, telephone (18% GST): eligible ITC. Professional fees (CA, lawyer — 18% GST): eligible ITC. Advertising on property portals (18% GST): eligible ITC. Business travel: eligible. Vehicles: BLOCKED — if car < 13 seats, no ITC (Section 17(5)). Laptop, office equipment: eligible ITC. Portal subscriptions (MagicBricks, 99Acres): 18% GST — eligible ITC. Maintenance of office: eligible ITC. Salary to employees: no GST, no ITC issue. Real estate project marketing: 18% GST on marketing agency fees — eligible ITC. The ITC can be used to offset the 18% GST charged to clients, reducing net GST payment.
How is GST on property management services different?
Property management services GST: Property management companies (managing rental properties, maintaining buildings, collecting rents): 18% GST on management fees (SAC 9972). Residential property managed and rented to individual for residence: management service itself is 18% GST; but the underlying rental income — if residential for individual use — is exempt from GST. Commercial property management: 18% GST on management fee; underlying commercial rent also 18% GST. Facility management (security, housekeeping, maintenance): 18% GST (SAC 9982). Condominium/society management services: 18% GST if annual turnover > ₹20L. Housing society maintenance charges: exempt up to ₹7,500/month per member; above ₹7,500/month: 18% GST. ITC for property management companies: eligible on all business inputs.
What is TDS on real estate agent commission?
TDS on real estate commission: Section 194H: TDS at 5% on commission/brokerage paid to resident agents if exceeds ₹15,000 per year (to the same person). Applicable when: builder/company/individual paying commission to broker/agent. TDS on GST component: No — TDS under 194H is on the BASE commission amount (excluding GST). TDS on GST is not required if the invoice clearly shows GST as a separate line item. Process: payer deducts 5% TDS, deposits with government, issues Form 16A to broker. Broker claims TDS credit in ITR. Example: ₹2L commission + ₹36K GST. TDS = 5% × ₹2L = ₹10,000. Broker receives ₹2L − ₹10K TDS + ₹36K GST = ₹2,26,000 net payment. Foreign client paying commission to Indian agent: 10% TDS under Section 195 or applicable DTAA rate. NRI agent: 10-20% TDS depending on income type.

Related Pages

GST on Real Estate GST on Flat Purchase TDS on Property Sale GST Registration Input Tax Credit
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