GST on Real Estate and Property 2026 — Under-Construction, Affordable Housing, Commercial
GST on real estate depends on the type of property and its completion status. Here is the complete guide for 2026.
GST Rates on Real Estate
| Property Type | GST Rate | ITC |
|---|---|---|
| Under-construction residential (regular) | 5% | No ITC |
| Affordable housing (up to ₹45L) | 1% | No ITC |
| Completed/ready-to-move residential | 0% (No GST) | N/A |
| Commercial property (under construction) | 12% | ITC available |
| Completed commercial property | 0% (No GST) | N/A |
| Plots of land | 0% (No GST) | N/A |
Under-Construction Residential Property — 5% GST
GST at 5% applies to under-construction residential properties where the completion certificate has not been issued.
Key points:
- No ITC available to the developer (passed on to buyer as higher price)
- GST is on the agreement value (excluding land value)
- Land value is typically 1/3 of the total value (excluded from GST)
Example:
- Agreement value: ₹60,00,000
- Land value (1/3): ₹20,00,000
- Construction value: ₹40,00,000
- GST (5%): ₹2,00,000
- Total cost: ₹62,00,000
Affordable Housing — 1% GST
Affordable housing projects attract only 1% GST.
Eligibility:
- Stamp duty value up to ₹45 lakh
- Carpet area up to 60 sq. metres in metro cities (Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata)
- Carpet area up to 90 sq. metres in non-metro cities
Completed Property — No GST
Once a completion certificate is issued, the property is considered "ready to move in" and no GST applies. This is why many buyers prefer ready-to-move properties — they avoid the 5% GST.
Important: If you buy a property after the completion certificate is issued, no GST is payable regardless of whether the developer has sold it before or after completion.
Commercial Property — 12% GST
Under-construction commercial properties (offices, shops, warehouses) attract 12% GST. The developer can claim ITC on construction materials.
GST on Rental Income
| Type | GST Rate |
|---|---|
| Residential property rented for residential use | Exempt |
| Residential property rented for commercial use | 18% |
| Commercial property rented | 18% (if landlord is GST registered) |
Threshold: GST on rental income applies only if the landlord's total rental income exceeds ₹20 lakh per year (GST registration threshold).
GST on Real Estate Services
| Service | GST Rate |
|---|---|
| Construction services (works contract) | 12% (with ITC) or 18% |
| Real estate agent commission | 18% |
| Property management services | 18% |
| Maintenance charges (housing society) | 18% (if above ₹7,500/month per member) |
Stamp Duty and Registration — Not GST
Stamp duty and registration charges are state-level taxes, not GST. They are separate from GST and vary by state:
- Karnataka: 5% stamp duty + 1% registration
- Maharashtra: 5% stamp duty + 1% registration
- Delhi: 4-6% stamp duty + 1% registration
Frequently Asked Questions
Do I pay GST when buying a flat from a builder?
Yes, if the flat is under construction (no completion certificate). GST at 5% (or 1% for affordable housing) applies. If the flat is ready to move in (completion certificate issued), no GST.
Is GST applicable on resale of property?
No. GST does not apply to resale of residential property between individuals. Capital gains tax applies instead.
Can I claim ITC on GST paid for under-construction property?
No. ITC is not available to buyers of residential property. The 5% GST is a final cost.
Buying property and need help with GST or capital gains tax? Message me on WhatsApp for guidance.
Related GST rates: Construction & Real Estate — cement, steel, bricks, paint, and property GST rates in one place.
Related Tools & Services
You Might Also Like
GST on Construction Services India 2026 — Rates, ITC, Cement GST Cut, Compliance
Complete guide to GST on construction services in India 2026. GST 2.0 changes — cement at 18% (down from 28%), construction services at 18%, affordable housing at 1%, ITC rules for builders.
GST on Works Contract India 2026 — 18% Rate, ITC Rules, Affordable Housing 1%
Complete guide to GST on works contract in India 2026. 18% for commercial construction, 1% for affordable housing, ITC blocked under Section 17(5), government contracts, and compliance.
GST Registration Threshold and Exemption Limits India 2026 — Who Must Register
Complete guide to GST registration thresholds in India 2026. ₹40L for goods, ₹20L for services, mandatory registration cases, composition scheme limits, and voluntary registration benefits.
Need help filing?
I handle everything via WhatsApp — documents to acknowledgement in 24–48 hours.
Chat on WhatsApp →