GST on Under-Construction Property
Calculate GST on an under-construction flat in India at the 1% affordable and 5% standard rates, and see why ready-to-move property attracts no GST.
Since April 2019, GST on residential property under construction is 1% for affordable housing and 5% for everything else, both without input tax credit. There is no GST on ready-to-move property once the builder has the completion certificate — the sale is then treated as a transfer of immovable property, outside GST.
That difference is worth real money: on a ₹80 lakh flat, buying after the completion certificate rather than before saves ₹4,00,000 in GST. It is also why an under-construction quote and a ready-possession quote are not directly comparable.
Which rate applies
| Property | GST | Input tax credit |
|---|---|---|
| Ready to move, completion certificate issued | Nil | — |
| Under construction — affordable housing | 1% | No |
| Under construction — standard | 5% | No |
| Plot of land only | Nil | — |
What counts as affordable housing
A residential unit qualifying for the 1% rate must be within a carpet area of 60 sq m in metros (Mumbai MMR, Delhi NCR, Chennai, Kolkata, Bengaluru, Hyderabad) or 90 sq m in non-metros, and the value must not exceed ₹45 lakh. Both conditions apply — a compact flat above ₹45 lakh does not qualify.
A worked example
An ₹80 lakh under-construction flat in Pune: GST at 5% is ₹4,00,000, stamp duty and registration at 7% is ₹5,60,000, so taxes alone are ₹9,60,000 — 12% on top of the quoted price. The identical flat bought after the completion certificate carries only the ₹5,60,000 of duty.
GST is charged on the value of the construction service, and no GST applies to the land component or to stamp duty itself. Builders quote all-inclusive prices differently, so ask for the tax break-up in writing before comparing.
Put your number on the page that answers the question
Buyers remember whoever gave them the answer. A property page of your own carries this calculator, your listings and a WhatsApp button, so the next question comes to you.
Create your free property pageFrequently asked questions
Is there GST on ready-to-move flats?
No. Once the builder has received the completion certificate, the sale is a transfer of immovable property and falls outside GST entirely. Only under-construction sales are taxed.
Is GST charged on resale property?
No. A resale between individuals is not a supply under GST, whatever the age of the building.
Can I claim input tax credit on the GST I pay?
No. The 1% and 5% rates were set deliberately low in exchange for removing ITC for the builder, and homebuyers never had ITC.
Is GST payable on stamp duty?
No — they are separate taxes, one state and one central, and neither is charged on the other.
What is GST on a plot of land?
Nil. Sale of land is outside GST. If you buy a plot with a construction contract attached, the construction portion is taxable at 18% with ITC, so read what you are actually signing.
More buying calculators
Stamp duty
State-wise duty and registration, with the women’s concession.
BuyingDown payment
Every rupee you need before you get the keys.
MeasurementCarpet area
Loading %, real usable space and true price per sq ft.
BuyingWhat you can afford
From income and deposit to a realistic asking price.
BuyingRent vs buy
The answer depends mostly on how long you stay.
BuyingDeposit savings plan
The deposit you need, and how long it takes to save it.
BuyingClosing costs
Total cash to complete, not just the deposit.
BuyingPrice per square foot
The only fair way to compare two properties.
BuyingJoint ownership split
A fair split when the deposits are not equal.
BuyingBuying abroad — true cost
The real cost once the exchange rate margin is counted.
BuyingExtend or move
The cheaper route to the space you need.
BuyingJoint income affordability
What two incomes borrow, after existing commitments.