What is GST on the basis of buying a Property?

When buying a home, you must pay Goods and Service Tax, or GST. The GST affects real estate buyers and developers. The GST on Indian property depends on its kind, value, whether it’s under construction or ready to occupy, etc.

In India, buyers of under-construction flats, apartments, and bungalows pay 1% GST for affordable housing and 5% GST for non-affordable housing. The GST applies to real estate land purchases.

What is the GST on property in India?

• GST on the purchase of a flat
• Taxes before the introduction of the GST
• Types of state and central taxes that the GST absorbed
• What does GST’s input tax credit (ITC) entail?
• Conditions governing GST on residential real estate
• Additional conditions to receive 1% GST on flat purchases
• Calculation of GST on the purchase of a flat in India
• Check Your GST knowledge!
• GST on registration of a flat
• GST on subsidized housing projects
• GST for construction services
• GST on maintenance fees for housing societies
• GST rate on developable land
• The impact of GST on the real estate market
• What is the GST on property in India?
• The Indian government implemented the Goods and Services Tax in 2017 to harmonize international taxation systems.

Before GST, developers and property purchasers had to pay several taxes, such as value-added, service, and central excise, increasing the burden on property purchasers. The taxation of the properties was structurally complicated and less transparent.

Initially, the GST on property acquisition was 12% for non-affordable housing and 8% for affordable housing for premium residential buildings.

Property purchasers were eligible for the input tax credit or ITC on the previously applicable GST rates.

The GST rates were updated during the 33rd meeting of the GST council and are effective as of April 1, 2019.

The new GST rate for purchasing affordable housing units is 1%, whereas it is 5% for non-affordable or luxury housing units without ITC.

GST on the purchase of a flat

Those purchasing flats and apartments in under-construction developments in India’s megacities in 2023 would be required to pay GST. Note that the GST does not apply to buying live Homes Navalur apartments in completed developments. A finished project has received a certificate of completion from the appropriate authorities.