GST on Property Purchase — 1%, 5% or Nil?

No. A completed property that has received its Occupancy Certificate (OC) or Completion Certificate (CC) is treated as a sale of immovable property under Schedule III of the CGST Act, which is neither a supply of goods nor of services. So there is no GST on ready-to-move homes — the buyer pays only stamp duty and registration fees. GST applies only during the construction phase, before OC.

No. The GST 2.0 rationalisation effective 22 September 2025 restructured goods and services into a two-slab (5%/18%) system with a 40% demerit rate, but it did not touch the real-estate purchase rates. Under-construction homes remain at 1% (affordable) and 5% (other), commercial at 12%, and ready-to-move property remains outside GST.

An under-construction commercial property (shop, office, showroom) is taxed at 12% GST, and a GST-registered buyer using it for business can claim the 12% as Input Tax Credit. A ready-to-move commercial property that has its OC/CC carries no GST — only stamp duty applies.

A flat gets the 1% rate only if it satisfies all conditions together: total consideration up to ₹45 lakh (excluding GST), carpet area up to 60 sqm in metro cities or up to 90 sqm in non-metro cities, it is part of a RERA-registered project, and it is under construction. Miss any single condition — for example price above ₹45 lakh — and the rate becomes 5%.

For the affordable-housing 60 sqm cap, the metro cities are Delhi NCR, Mumbai (Mumbai Metropolitan Region), Bengaluru, Hyderabad, Chennai and Kolkata. All other cities use the more generous 90 sqm carpet-area limit. Both the ₹45 lakh price cap and the applicable carpet-area cap must be met.

The ₹45 lakh affordable-housing ceiling is the total consideration / gross amount charged for the flat, excluding GST but including most charges the builder recovers as part of the price. If the total consideration exceeds ₹45 lakh, the flat is non-affordable and attracts 5% GST even if its carpet area is within the limit.

Yes, entirely. GST is a Centre/State levy on under-construction property; stamp duty is a State levy on registration of the sale deed and applies to every property, under-construction or ready. On an under-construction flat you may pay both GST (on the construction value) and stamp duty (on registration). On a ready-to-move flat you pay only stamp duty and registration, no GST.

Stamp duty is set by each state and typically ranges from 5% to 8% of the property value, plus a registration fee of around 1%. Many states offer concessions for women buyers or affordable homes. Because stamp duty is a state subject, the exact rate and the value on which it is computed vary — always check your state stamp Act.

No. Since 1 April 2019, buyers of under-construction residential flats cannot claim Input Tax Credit on the 1% or 5% GST they pay — the reduced rates were introduced with an explicit no-ITC condition. Builders also cannot pass on input credit for residential projects. Only GST-registered buyers of commercial property at 12% can claim ITC.

No. Stamp duty and registration fees are state levies outside the GST framework, so they can never be claimed as Input Tax Credit against your GST liability. This applies to every buyer — residential or commercial.

No. Sale of land is listed in Schedule III of the CGST Act as neither a supply of goods nor a supply of services, so it is outside GST. Buying a plot or agricultural land attracts only stamp duty and registration. However, if a developer charges separately for construction or development works on the plot, GST can apply to that service component.

No. Resale of a completed property that already has its OC/CC is a sale of immovable property, outside GST. The buyer pays only stamp duty and registration on the resale. GST would apply only if you were buying an under-construction unit directly from a builder before OC.

In a JDA, the landowner transfers development rights (FSI) to the developer and receives constructed units in return. GST applies on the transfer of development rights and on the construction service the developer provides for the landowner's share, generally crystallising when the OC/CC is issued, with reverse charge applicable in defined situations. JDA valuation is technical — professional advice is strongly recommended.

Charges that are naturally bundled with the sale of an under-construction flat — such as preferential-location charges or covered car parking sold with the unit — are generally treated as part of the composite construction supply and taxed at the same 1%/5% rate as the flat. Standalone or optional charges may be assessed separately; confirm the builder's breakup and consult a GST professional.

That is a separate question from purchase. Residential property let to an individual for personal use is exempt, while commercial rent to a registered person is taxed at 18%. Residential property let to a GST-registered business attracts 18% under reverse charge. See our dedicated GST-on-rent guide for the full picture.