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GST on Flat Purchase Calculator: Under-Construction Property

Buying an under-construction flat from a builder? GST is charged on top of the agreement value — 1% if the home qualifies as affordable housing, 5% otherwise. Ready-to-move and resale homes have no GST. Check what applies to your flat.

Rules last reviewed September 2026Official source: cbic-gst.gov.in

₹

The price payable to the builder, excluding stamp duty and registration.

GST payable

₹3,00,000

Value is above ₹45 lakh, so the standard 5% rate applies.

GST rate5%
Carpet area60.4 sq m
Agreement value₹60,00,000
Total including GST₹63,00,000

Stamp duty and registration are extra and are charged by the state, not included here.

GST on flats: worked examples

Under-construction flatRateGST
₹40 lakh, 55 sq m, metro1%₹40,000
₹40 lakh, 80 sq m, non-metro1%₹40,000
₹40 lakh, 80 sq m, metro5%₹2,00,000
₹75 lakh, 90 sq m, metro5%₹3,75,000
₹1.5 crore, 140 sq m, metro5%₹7,50,000

GST rates on residential property

  • Affordable housing, under construction: 1% (no input tax credit).
  • Other residential, under construction: 5% (no input tax credit).
  • Ready to move with completion/occupancy certificate: no GST.
  • Resale property: no GST.

Why the rates are 1% and 5%

The notified rates are 1.5% and 7.5%, but one-third of the value is deemed to be land, which isn't taxed. Charging 1.5% or 7.5% on the remaining two-thirds works out to an effective 1% or 5% of the full agreement value — which is what you actually pay.

Total cost of buying an under-construction flat

Add GST to the agreement value, then add your state's stamp duty and registration charges — usually 5–8% of the value. If the property is worth ₹50 lakh or more, you must also deduct 1% TDS from the payment, though that is part of the price rather than an extra cost.

Frequently asked questions

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