GST Rate on Real Estate

GST is 5% on under-construction properties (1% for affordable housing), with no input tax credit. Ready-to-move-in properties with an occupancy certificate are exempt. Sale of land is also not taxed under GST.

The Goods and Services Tax (GST) rates on real estate in India have undergone changes over time. As of the latest guidelines, the GST rates applicable to real estate transactions are as follows:

1. Affordable Housing Projects:

   • GST Rate: 1% (without Input Tax Credit)
   • Definition: Housing units with a carpet area of up to 60 square meters in metropolitan cities and 90 square meters in non-metropolitan cities, with a value up to ?45 lakhs.

2. Other Residential Properties:

   • GST Rate: 5% (without Input Tax Credit)
   • Applicable: For residential properties that do not qualify as affordable housing.

3. Commercial Properties:

   • GST Rate: 12% (with Input Tax Credit)
   • Applicable: For under-construction commercial properties.

4. Completed Properties/Ready-to-Move-In Properties:

   • GST Rate: Nil
   • Applicable: For properties where the completion certificate has been issued by the competent authority, no GST is applicable.

5. Land and Fully Constructed Property Sales:

   • GST Rate: Nil
   • Applicable: Sale of land and fully constructed properties where the sale does not involve the transfer of goods or services.

These rates are subject to change based on government policies and updates. It's always advisable to check the latest notifications from the GST Council or consult a tax professional for the most current information.