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.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →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.
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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.