The rates at a glance
| Purchase | GST |
|---|---|
| Under-construction flat, affordable housing | 1% of the agreement value |
| Under-construction flat, other residential | 5% of the agreement value |
| Flat sold after the completion or occupancy certificate | Nil |
| Resale flat bought from an individual owner | Nil |
These rates, in force since 1 April 2019, are effective rates: they already allow a deemed deduction of one-third of the price for the land. The builder cannot claim input tax credit at these rates. The September 2025 rate changes cut GST on inputs such as cement but did not change these rates.
What counts as affordable housing
- Carpet area up to 60 square metres in a metropolitan city, or up to 90 square metres elsewhere; and
- Value up to ₹45 lakh.
- The metropolitan cities for this purpose are Bengaluru, Chennai, Delhi NCR (Delhi, Noida, Greater Noida, Ghaziabad, Gurugram and Faridabad), Hyderabad, Kolkata and Mumbai (the whole Mumbai Metropolitan Region).
- Both conditions must be met. A 55 sq m flat in Kolkata priced at ₹50 lakh is taxed at 5%.
Charges on top of the base price
- Car parking, preferential location and similar charges collected as part of the flat sale generally follow the flat's rate.
- Society maintenance: maintenance collected by a residents' welfare association is exempt up to ₹7,500 per member per month. Above that, GST at 18% applies to the full amount, if the association's turnover requires registration.
- Rent: if you later let the flat, see GST on rent.
TDS and capital gains
Separately from GST, a buyer of property worth ₹50 lakh or more must deduct TDS and file the challan-cum-statement; see TDS on property and Form 26QB. When you sell later, the gain is taxed as capital gains; see our capital gains guide.
Talk to Regikart
We check the GST on your builder's demand letters, file TDS on property for buyers and advise on capital gains when you sell. Call or WhatsApp +91 70444 94804, or use the GST calculator for a quick estimate.
Frequently asked questions
What is the GST rate on an under-construction flat?
1% for affordable housing and 5% for other residential flats, without input tax credit, on the agreement value.
Is GST payable on a ready-to-move flat?
No, if the flat is sold after the completion certificate is issued. A resale flat bought from its owner also carries no GST.
What is affordable housing for GST?
A flat with carpet area up to 60 sq m in a metropolitan city or 90 sq m elsewhere, and value up to ₹45 lakh.
Did GST 2.0 change the GST on flats?
No. The 1% and 5% rates stayed the same; the September 2025 changes lowered GST on construction inputs such as cement.
Is GST charged on society maintenance?
Maintenance up to ₹7,500 per member per month is exempt. Above that, 18% applies to the whole amount, if the association is registered.
About the author
Regikart CA Team
Chartered Accountants at Regikart. Want to discuss this in the context of your business?
