How to Calculate GST on Under-Construction Flats in India (2026 Guide)
Understanding Goods and Services Tax (GST) calculation on property purchases is essential for real estate developers, property advisors, and homebuyers in India. Incorrect GST calculation on cost sheets can cause customer dissatisfaction or tax penalties during audit.
Current Real Estate GST Rates in India
| Property Category | Effective GST Rate | Input Tax Credit (ITC) |
|---|---|---|
| Affordable Residential Housing (Valued up to ₹45 Lakhs & Carpet Area up to 60/90 sq.m) | 1% | ❌ No ITC |
| Non-Affordable Residential Housing (Valued above ₹45 Lakhs) | 5% | ❌ No ITC |
| Commercial Property (Offices, Shops, Retail Outlets) | 12% | ✅ Available |
| Ready-to-Move Flats (with Completion Certificate / CC) | 0% (Exempt) | ❌ N/A |
Calculation Example: Non-Affordable 3BHK Flat
Let's calculate total GST for a 3BHK under-construction flat priced at ₹80,000,00 (₹80 Lakhs):
- Agreement Value (BSP + PLC + Parking): ₹80,000,00
- GST Rate: 5% (without ITC)
- GST Amount = ₹80,000,00 × 5% = ₹4,00,000
- Total Payable by Buyer (Excluding Stamp Duty & Registration): ₹84,00,000
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