What is the GST rate on under-construction property in India?

There are three rates: (1) 1% for affordable housing — carpet area ≤ 60 sq.m. in metros / ≤ 90 sq.m. in non-metros AND price ≤ ₹45.00L; (2) 5% for other residential under-construction properties; (3) 12% for commercial properties. All rates are effective (after the mandatory 1/3rd land value deduction).

Is GST applicable on ready-to-move-in properties?

No. GST is only applicable on under-construction properties where an Occupation Certificate (OC) has NOT been issued. Once the builder receives the OC, the transaction is treated as a sale of immovable property and is outside the GST net.

How is the 1/3rd land deduction applied to GST?

The GST Council mandates that land value is deemed to be 1/3rd of the total consideration. The stated rates (1%, 5%, 12%) are 'effective' rates already adjusted for this — meaning the actual GST is charged on the full agreement value at these effective rates, not at 1.5%/7.5%/18% on the construction component.

Is stamp duty calculated on the value including or excluding GST?

In most states, stamp duty is levied on the higher of the agreement value or the government circle rate, EXCLUDING GST. However, some states include GST in the base for stamp duty. This calculator uses the excluding-GST method as the general standard.

Under-Construction GSTFY 2026-27

Calculate the exact GST payable on an under-construction property and determine whether you qualify for the 1% affordable housing rate or the standard 5% rate.

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Quick Summary: Under-Construction GST

GST on residential property in FY 2026-27 is applied at two rates: 1% for 'Affordable Housing' (Value ≤ ₹45.00L) and 5% for others. There is no Input Tax Credit (ITC) for builders under these rates. Critically, GST is only payable on under-construction flats; ready-to-move properties with an Occupation Certificate (OC) attract 0% GST.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.