gst

GST on Real Estate: Under Construction Property

Understanding GST on under construction flats and residential properties. New rates, ITC rules, and affordable housing benefits.

GetYourCA Team
1 April 2025·Updated 9 April 20261 min read12.5K views
"GST Real Estate""Property""Under Construction""ITC"

GST on Real Estate: Under Construction Property

GST Rates on Real Estate#

Residential ( Affordable Housing)#

  • 1% (without ITC)
  • 5% (with ITC)

Residential (Non-Affordable)#

  • 8% (without ITC)
  • 18% (with ITC)

Commercial#

  • 18% (with ITC)

Affordable Housing Criteria#

  • Carpet area: 90 sqm (metro), 110 sqm (non-metro)
  • Price: ₹45 lakh (metro), ₹35 lakh (non-metro)

Input Tax Credit#

  • Can claim ITC on construction
  • Requires project registration

Key Points#

  • Ready reckoner value considered
  • Land value deducted
  • Floor space index matters

Builders Options#

  • Pay 5%/1% without ITC
  • Pay 18% with ITC

Conclusion#

Real estate GST depends on property type.

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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