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GST on under-construction property (2026)
GST applies only while a home is under construction. Once it has a completion or occupancy certificate, no GST is due. Here are the 2026 rates and the rules that decide which one you pay.
GST rates on residential property (2026)
Since 2019 developers cannot claim input tax credit on residential projects, so the 1%/5% rate is the final, simple number a buyer pays — there is no separate ITC adjustment.
| Property type | GST rate | Input tax credit |
|---|---|---|
| Affordable (≤ ₹45 lakh, carpet ≤ 60 sqm metro) | 1% | No ITC |
| Other under-construction homes | 5% | No ITC |
| Ready-to-move (with CC/OC) | 0% | N/A |
When GST does NOT apply
If the flat already has a completion certificate (CC) or occupancy certificate (OC), the sale is treated as immovable property and attracts 0% GST. This is a real saving on ready-to-move homes versus under-construction ones.
What counts as “affordable” for 1% GST
- Price up to ₹45 lakh, AND
- Carpet area up to 60 sq m (~645 sqft) in metro cities or 90 sq m (~968 sqft) in non-metros.
- Both conditions must be met to qualify for the concessional 1% rate.
FAQs
What is the GST rate on under-construction flats in 2026?
5% for standard under-construction homes and 1% for affordable housing (≤ ₹45 lakh with the carpet-area limits), in both cases without input tax credit.
Is there GST on ready-to-move flats?
No. A ready-to-move flat sold with a completion or occupancy certificate attracts 0% GST.