Free tool
GST on an under-construction flat
1% or 5%, or none at all? Enter the price and carpet area and see which applies, with the CGST and SGST split.
Effective rates from 1 April 2019, with no input tax credit. Stamp duty and registration are separate. Estimate only; your builder’s tax invoice is final.
Two rates, one test
From 1 April 2019, GST on a residential flat under construction is 5% of the amount charged, or 1% if the flat is an affordable residential apartment. These are set by Notification 11/2017-Central Tax (Rate), as amended by Notification 03/2019. Half of the GST is CGST, paid to the Centre, and half is SGST, paid to Karnataka.
A flat is affordable when its carpet area is at most 60 sq m in a metro (Bengaluru is one) or 90 sq m elsewhere, and its gross amount is at most ₹45 lakh. Carpet area is the usable floor inside your walls, as defined in section 2(k) of the RERA Act, 2016; it is smaller than the “super built-up” figure in many brochures.
An illustrative example
A flat billed at ₹70 lakh with 850 sq ft carpet area fails both tests, so GST is 5%: ₹3,50,000, which is ₹1,75,000 CGST plus ₹1,75,000 SGST. These figures are only an example, not a Reeva price.
When it is due
GST is charged on each instalment as you pay it during construction. If the completion certificate is issued before a payment, that payment has no GST. Check the builder’s GST number on the GST portal and keep every tax invoice. For the other costs, see the stamp duty calculator and the TDS calculator.
Other tools that help
- TDS on Property Purchase CalculatorThe 1% you hold back from the seller and pay to the tax department, worked out.
- Home Loan Prepayment CalculatorHow much interest and how many months a lump-sum prepayment saves.
- Home Loan Amortisation ScheduleEvery EMI, month by month: interest, principal and balance left.
- Rent vs Buy CalculatorKeep renting and invest, or buy now? Compare both paths in rupees.
- Home Affordability CalculatorThe highest home price your pay and savings support, with RBI loan limits.
- Home Loan EMI CalculatorYour monthly instalment and the total interest, year by year.
- Loan eligibilityA rough idea of what a bank may lend from your pay.
- Stamp duty, KarnatakaDuty, cess, surcharge and registration fee in one place.
- First-home guideEvery step of buying your first flat in Bengaluru.
- The Shalott Marque2 and 3 BHK homes at S Medihalli, Sarjapur–Attibele Road. Price on request.
FAQ
Questions people ask
Why is there GST on a flat but not on a resale home?
GST is charged on a supply of construction service. While a building is under construction, the builder is still supplying that service, so GST applies. A home sold after the completion certificate is issued is treated as a sale of property, not a service, so no GST is due on it.
How do I know if my flat counts as affordable?
Both tests must hold: carpet area up to 60 sq m (about 646 sq ft) in a metro city such as Bengaluru, or up to 90 sq m elsewhere, AND a gross amount up to ₹45 lakh. If either test fails, the 5% rate applies.
Is 5% charged on the whole price?
Yes, as an effective rate. The notification taxes the flat at 7.5% after deducting one-third of the amount as the value of land, and 7.5% of two-thirds is 5% of the whole. So you can simply apply 5% (or 1%) to the amount charged.
Can the builder pass on input tax credit to me?
Not under these rates. Since 1 April 2019 the 1% and 5% rates for residential flats come without input tax credit for the builder. That is the trade-off for the lower rates.
Is GST charged on stamp duty or registration?
No. Stamp duty and registration are state charges paid to the sub-registrar, and GST is not added to them. Charges billed with the flat, such as a car park, usually carry the same GST as the flat.
Want to run these numbers on a real home?
Ask the Reeva team for the price of a home at The Shalott Marque, then put it into the calculator. We will walk you through the costs, the paperwork and the loan, plainly.