GST on Real Estate — Under-Construction, Affordable Housing (2026)
GST on real estate applies only to under-construction properties. Ready-to-move and completed properties (with occupancy certificate) are exempt. Affordable housing attracts 1% and other residential properties attract 5% — both without ITC.
Quick Reference
Ready-to-move
0% (Exempt)
Affordable Housing
1% (no ITC)
Other Residential
5% (no ITC)
Commercial U/C
12% (ITC allowed)
SAC Code
9954
GST Rate
1% / 5%
SAC 9954
Ready-to-Move / Completed Property — No GST
No GST applies on the sale of completed properties (where occupancy certificate or completion certificate has been issued). This is treated as a transfer of immovable property, which is outside the scope of GST.
Under-Construction Residential — 5% (No ITC)
Residential properties that are under construction attract 5% GST on the consideration. The developer cannot claim ITC on construction materials.
Affordable Housing — 1% (No ITC)
Properties qualifying as affordable housing (carpet area ≤ 60 sq.m in metro cities, ≤ 90 sq.m in non-metro, value ≤ ₹45 lakh) attract 1% GST without ITC.
Commercial Properties Under Construction
Commercial properties under construction attract 12% GST with ITC. This includes office spaces, shops, and retail outlets.
GST on Plot + Construction Contract
Pure land sale is not subject to GST. However, if a builder sells a plot with a construction agreement, the construction portion attracts applicable GST.
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If the flat qualifies as affordable housing (value ≤ ₹45 lakh, carpet area ≤ 60 sq.m in metros), 1% GST applies. All other under-construction flats attract 5% GST on the agreement value.
No. GST is charged on the base property value (excluding stamp duty and registration charges). Stamp duty and registration are separate state-level charges.
Yes, if it is an under-construction commercial property (12% GST). The ITC of 12% can be set off against your output GST liability. For residential or affordable housing, ITC is blocked.
Housing society maintenance charges attract 18% GST only if the monthly contribution per member exceeds ₹7,500 AND the society's annual turnover exceeds ₹20 lakh.
