{"id":4305,"date":"2026-07-17T12:13:17","date_gmt":"2026-07-17T12:13:17","guid":{"rendered":"https:\/\/www.gangarealty.com\/blog\/?p=4305"},"modified":"2026-07-17T12:14:59","modified_gmt":"2026-07-17T12:14:59","slug":"gst-on-under-construction-property-in-india","status":"publish","type":"post","link":"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/","title":{"rendered":"GST on Under-Construction Property in India (2026): Rates and Calculation"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Planning to buy an under-construction flat? Before you book your dream home, it&#8217;s important to understand how <strong>GST on under-construction property<\/strong> works. Unlike ready-to-move-in homes, properties that are still under construction are subject to GST because they are treated as a construction service under Indian tax laws. <\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#What_is_GST_on_Under-Construction_Property\" >What is GST on Under-Construction Property?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Latest_GST_Rates_on_Under-Construction_Property_2026\" >Latest GST Rates on Under-Construction Property (2026)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#When_is_GST_Applicable\" >When is GST Applicable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#How_to_Calculate_GST_on_Under-Construction_Property_2026\" >How to Calculate GST on Under-Construction Property (2026)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Example_1_Affordable_Housing_Flat\" >Example 1: Affordable Housing Flat<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Example_2_Non-Affordable_Under-Construction_Flat\" >Example 2: Non-Affordable Under-Construction Flat<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Example_3_GST_on_Instalment-Based_Payments\" >Example 3: GST on Instalment-Based Payments<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#GST_on_Luxury_Apartments_in_Gurgaon\" >GST on Luxury Apartments in Gurgaon<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Affordable_Housing_vs_Luxury_Housing\" >Affordable Housing vs Luxury Housing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#What_is_the_Difference_Between_GST_and_Stamp_Duty\" >What is the Difference Between GST and Stamp Duty?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Common_Mistakes_Homebuyers_Make_While_Paying_GST_on_Under-Construction_Property\" >Common Mistakes Homebuyers Make While Paying GST on Under-Construction Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Tips_Before_Buying_an_Under-Construction_Property\" >Tips Before Buying an Under-Construction Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Why_Buyers_Choose_Under-Construction_Projects\" >Why Buyers Choose Under-Construction Projects<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#How_Does_GST_Affect_the_Real_Estate_Sector\" >How Does GST Affect the Real Estate Sector?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#1_Increased_Transparency\" >1. Increased Transparency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#2_Simplified_Tax_Structure\" >2. Simplified Tax Structure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#3_Greater_Confidence_for_Homebuyers\" >3. Greater Confidence for Homebuyers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#4_Impact_on_Under-Construction_Properties\" >4. Impact on Under-Construction Properties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#5_Boost_to_the_Affordable_Housing_Segment\" >5. Boost to the Affordable Housing Segment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#6_Better_Compliance_Across_the_Industry\" >6. Better Compliance Across the Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#7_Improved_Buyer_Awareness\" >7. Improved Buyer Awareness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#8_Continued_Long-Term_Market_Growth\" >8. Continued Long-Term Market Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Anantam_85\" >Anantam 85<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Nandaka_84\" >Nandaka 84<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Ganga_Kashi_Residences\" >Ganga Kashi Residences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Ganga_Valley_78\" >Ganga Valley 78<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#FAQs_About_GST_on_Under-Construction_Property\" >FAQs About GST on Under-Construction Property<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Is_GST_applicable_on_under-construction_property_in_India\" >Is GST applicable on under-construction property in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#What_is_the_GST_rate_on_under-construction_flats_in_2026\" >What is the GST rate on under-construction flats in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Is_GST_applicable_on_ready-to-move-in_properties\" >Is GST applicable on ready-to-move-in properties?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#How_do_I_calculate_GST_on_an_under-construction_property\" >How do I calculate GST on an under-construction property?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Is_GST_applicable_on_resale_properties\" >Is GST applicable on resale properties?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Does_GST_apply_to_luxury_apartments\" >Does GST apply to luxury apartments?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-under-construction-property-in-india\/#Where_can_I_find_premium_under-construction_projects_in_Gurgaon\" >Where can I find premium under-construction projects in Gurgaon?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p class=\"wp-block-paragraph\">Knowing the applicable GST rates, how the tax is calculated, and when it applies can help you estimate the actual cost of your purchase and avoid unexpected expenses. In this guide, we&#8217;ll explain everything you need to know about GST on under-construction properties in 2026 in a simple, easy-to-understand way.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To better understand how GST impacts residential and commercial property transactions, read our complete guide on <strong><a href=\"https:\/\/www.gangarealty.com\/blog\/gst-on-real-estate-sector-in-india\/\" title=\"\">GST on real estate<\/a><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_GST_on_Under-Construction_Property\"><\/span>What is GST on Under-Construction Property?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"365\" src=\"https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-investment-and-real-estate-growth-1024x365.png\" alt=\"GST investment and real estate growth\" class=\"wp-image-4313\" srcset=\"https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-investment-and-real-estate-growth-1024x365.png 1024w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-investment-and-real-estate-growth-300x107.png 300w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-investment-and-real-estate-growth-768x274.png 768w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-investment-and-real-estate-growth.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Goods and Services Tax (GST)<\/strong> applies to under-construction properties because developers provide an ongoing construction service until the project is completed. Therefore, buyers purchasing a home before completion must pay GST along with the property&#8217;s base price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, if you purchase a ready-to-move-in property after the developer has obtained a <strong>Completion Certificate (CC)<\/strong> or <strong>Occupancy Certificate (OC)<\/strong>, the transaction is treated as the sale of immovable property rather than a construction service, making it exempt from GST.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not sure which option is right for you? Compare both in our guide on <strong><a href=\"https:\/\/www.gangarealty.com\/blog\/under-construction-vs-ready-to-move-high-rise-apartments-what-should-you-choose\/\" title=\"\">Under-Construction vs Ready-to-Move Property<\/a><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Latest_GST_Rates_on_Under-Construction_Property_2026\"><\/span>Latest GST Rates on Under-Construction Property (2026)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Property Category<\/th><th class=\"has-text-align-center\" data-align=\"center\">GST Rate<\/th><th>Input Tax Credit (ITC)<\/th><\/tr><\/thead><tbody><tr><td>Affordable Housing<\/td><td class=\"has-text-align-center\" data-align=\"center\">1%<\/td><td>No<\/td><\/tr><tr><td>Non-Affordable Residential Property<\/td><td class=\"has-text-align-center\" data-align=\"center\">5%<\/td><td>No<\/td><\/tr><tr><td>Commercial Property<\/td><td class=\"has-text-align-center\" data-align=\"center\">12%<\/td><td>Yes (subject to applicable rules)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The current residential GST rates introduced in 2019 continue to apply in 2026. If you&#8217;re considering a premium home, explore our guide to <strong>Luxury Apartments in Gurgaon<\/strong> to understand the costs and benefits of luxury living.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_is_GST_Applicable\"><\/span>When is GST Applicable?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You need to pay GST when:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You purchase an apartment before completion.<\/li>\n\n\n\n<li>The builder receives payments before the Completion Certificate or Occupancy Certificate.<\/li>\n\n\n\n<li>Construction is still ongoing.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You do not pay GST if:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The property is ready to move in.<\/li>\n\n\n\n<li>The builder has already received the Completion Certificate or Occupancy Certificate before the sale.<\/li>\n\n\n\n<li>You purchase a resale property from an existing owner.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Calculate_GST_on_Under-Construction_Property_2026\"><\/span>How to Calculate GST on Under-Construction Property (2026)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You calculate GST on an under-construction flat by first reducing the agreement value by one-third as a standard land deduction, then applying the correct GST rate (1% or 5%) on the remaining two\u2011thirds, and adding this GST to your cost.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-calculation-on-under-construction-property-1024x683.png\" alt=\"GST calculation on under-construction property\" class=\"wp-image-4319\" srcset=\"https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-calculation-on-under-construction-property-1024x683.png 1024w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-calculation-on-under-construction-property-300x200.png 300w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-calculation-on-under-construction-property-768x512.png 768w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/GST-calculation-on-under-construction-property.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Calculating GST on an under-construction property is straightforward once you know whether the home qualifies as <strong>affordable housing<\/strong> or <strong>non-affordable housing<\/strong>. The GST is calculated on the <strong>base sale price<\/strong> of the property (excluding stamp duty, registration charges, and other government levies).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>GST Amount = Base Property Price \u00d7 Applicable GST Rate<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The final amount payable is:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Total Cost = Base Property Price + GST<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s understand this with a few practical examples. Besides GST, buyers should also account for <strong><a href=\"https:\/\/www.gangarealty.com\/blog\/stamp-duty-and-registration-charges-gurgaon\/\" title=\"\">stamp duty and registration charges in Haryana<\/a><\/strong> when estimating the total property cost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_1_Affordable_Housing_Flat\"><\/span>Example 1: Affordable Housing Flat<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you&#8217;re buying an under-construction flat in a <strong>non-metro city<\/strong> for <strong>\u20b938 lakh<\/strong>. The apartment has a <strong>carpet area of 85 sq. m.<\/strong>, which falls within the affordable housing criteria.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Particulars<\/th><th class=\"has-text-align-center\" data-align=\"center\">Amount<\/th><\/tr><\/thead><tbody><tr><td>Base Property Price<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b938,00,000<\/td><\/tr><tr><td>Applicable GST Rate<\/td><td class=\"has-text-align-center\" data-align=\"center\">1%<\/td><\/tr><tr><td>GST Payable<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b938,000<\/td><\/tr><tr><td><strong>Total Purchase Cost<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>\u20b938,38,000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Takeaway:<\/strong> Since the property qualifies as affordable housing, you pay GST at only <strong>1%<\/strong>, keeping the overall tax burden relatively low.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_2_Non-Affordable_Under-Construction_Flat\"><\/span>Example 2: Non-Affordable Under-Construction Flat<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Now consider a buyer purchasing a <strong>2 BHK apartment in a metro city<\/strong> for <strong>\u20b995 lakh<\/strong>. Although the carpet area is <strong>75 sq. m.<\/strong>, it exceeds the affordable housing limit for metro cities, so the property falls under the non-affordable category.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Particulars<\/th><th class=\"has-text-align-center\" data-align=\"center\">Amount<\/th><\/tr><\/thead><tbody><tr><td>Base Property Price<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b995,00,000<\/td><\/tr><tr><td>Applicable GST Rate<\/td><td class=\"has-text-align-center\" data-align=\"center\">5%<\/td><\/tr><tr><td>GST Payable<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b94,75,000<\/td><\/tr><tr><td><strong>Total Purchase Cost<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>\u20b999,75,000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Takeaway:<\/strong> Properties that don&#8217;t qualify as affordable housing attract <strong>5% GST<\/strong>, resulting in a higher overall purchase cost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_3_GST_on_Instalment-Based_Payments\"><\/span>Example 3: GST on Instalment-Based Payments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Most under-construction properties are purchased through <strong>construction-linked payment plans<\/strong>, where buyers pay in stages as construction progresses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">GST is applicable <strong>only on instalments paid before the Completion Certificate (CC) or Occupancy Certificate (OC) is issued<\/strong>. Any payment made after the project receives the CC\/OC is <strong>not subject to GST<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Construction Stage<\/th><th class=\"has-text-align-center\" data-align=\"center\">Instalment Amount<\/th><th class=\"has-text-align-center\" data-align=\"center\">GST (5%)<\/th><th class=\"has-text-align-center\" data-align=\"center\">Total Payable<\/th><\/tr><\/thead><tbody><tr><td>Booking Amount<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b910,00,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b950,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b910,50,000<\/td><\/tr><tr><td>Foundation Completion<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b915,00,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b975,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b915,75,000<\/td><\/tr><tr><td>Slab Completion<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b920,00,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b91,00,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b921,00,000<\/td><\/tr><tr><td>Final Payment (After CC\/OC)<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b950,00,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>\u20b90<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b950,00,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Point:<\/strong> GST is charged only on payments made while the property is under construction. Once the builder receives the Completion Certificate (CC) or Occupancy Certificate (OC), any remaining payment is treated as the sale of a completed property and is not liable to GST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_on_Luxury_Apartments_in_Gurgaon\"><\/span>GST on Luxury Apartments in Gurgaon<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Most premium residential projects in Gurgaon fall under the <strong>5% GST category<\/strong>, as they generally exceed the affordable housing limits. If you&#8217;re planning to invest in a luxury apartment, it&#8217;s important to calculate:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>GST<\/li>\n\n\n\n<li>Stamp Duty<\/li>\n\n\n\n<li>Registration Charges<\/li>\n\n\n\n<li>Maintenance Deposits<\/li>\n\n\n\n<li>Club Membership Charges<\/li>\n\n\n\n<li>Parking Charges<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Knowing the complete acquisition cost helps you plan your investment more accurately. Before investing, compare the latest <strong><a href=\"https:\/\/www.gangarealty.com\/blog\/property-rates-in-gurgaon-real-estate\/\" title=\"\">property rates in Gurgaon<\/a><\/strong> to make a well-informed buying decision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Affordable_Housing_vs_Luxury_Housing\"><\/span>Affordable Housing vs Luxury Housing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Feature<\/th><th class=\"has-text-align-center\" data-align=\"center\">Affordable Housing<\/th><th class=\"has-text-align-center\" data-align=\"center\">Luxury Housing<\/th><\/tr><\/thead><tbody><tr><td>GST<\/td><td class=\"has-text-align-center\" data-align=\"center\">1%<\/td><td class=\"has-text-align-center\" data-align=\"center\">5%<\/td><\/tr><tr><td>Property Value<\/td><td class=\"has-text-align-center\" data-align=\"center\">Up to \u20b945 lakh (subject to eligibility)<\/td><td class=\"has-text-align-center\" data-align=\"center\">Above affordable threshold<\/td><\/tr><tr><td>ITC<\/td><td class=\"has-text-align-center\" data-align=\"center\">No<\/td><td class=\"has-text-align-center\" data-align=\"center\">No<\/td><\/tr><tr><td>Target Buyers<\/td><td class=\"has-text-align-center\" data-align=\"center\">First-time buyers<\/td><td class=\"has-text-align-center\" data-align=\"center\">Premium buyers<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Difference_Between_GST_and_Stamp_Duty\"><\/span>What is the Difference Between GST and Stamp Duty?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many buyers assume GST replaces stamp duty, but these are different charges. In many states, both GST (where applicable) and stamp duty must be paid during the purchase process.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-center\" data-align=\"center\">Aspect<\/th><th class=\"has-text-align-center\" data-align=\"center\">GST<\/th><th class=\"has-text-align-center\" data-align=\"center\">Stamp Duty<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">Levied by<\/td><td class=\"has-text-align-center\" data-align=\"center\">Central Government (via GST Council)<\/td><td class=\"has-text-align-center\" data-align=\"center\">State Government<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Applies to<\/td><td class=\"has-text-align-center\" data-align=\"center\">Under-construction property purchase (as a service)<\/td><td class=\"has-text-align-center\" data-align=\"center\">All property transactions (registration)<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Rate<\/td><td class=\"has-text-align-center\" data-align=\"center\">1% or 5% (residential)<\/td><td class=\"has-text-align-center\" data-align=\"center\">Typically 5\u20138%, varies by state<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">When paid<\/td><td class=\"has-text-align-center\" data-align=\"center\">During construction, per instalment<\/td><td class=\"has-text-align-center\" data-align=\"center\">At the time of property registration<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Applicable on resale\/ready properties?<\/td><td class=\"has-text-align-center\" data-align=\"center\">No<\/td><td class=\"has-text-align-center\" data-align=\"center\">Yes<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Governing law<\/td><td class=\"has-text-align-center\" data-align=\"center\">CGST Act, 2017<\/td><td class=\"has-text-align-center\" data-align=\"center\">State Stamp Act<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Mistakes_Homebuyers_Make_While_Paying_GST_on_Under-Construction_Property\"><\/span>Common Mistakes Homebuyers Make While Paying GST on Under-Construction Property<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Buying an under-construction property involves more than just comparing prices. Many homebuyers misunderstand how GST works, which can lead to unexpected costs or confusion during the purchase process. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/Common-GST-mistakes-for-homebuyers-1024x683.png\" alt=\"Common GST mistakes for homebuyers\" class=\"wp-image-4321\" srcset=\"https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/Common-GST-mistakes-for-homebuyers-1024x683.png 1024w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/Common-GST-mistakes-for-homebuyers-300x200.png 300w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/Common-GST-mistakes-for-homebuyers-768x512.png 768w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/Common-GST-mistakes-for-homebuyers.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some of the most common mistakes to avoid.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Assuming GST applies to every property purchase.<\/li>\n\n\n\n<li>Forgetting to check whether the project has a Completion Certificate.<\/li>\n\n\n\n<li>Ignoring additional charges such as registration fees and stamp duty.<\/li>\n\n\n\n<li>Calculating GST only on the advertised property price without understanding the payment structure.<\/li>\n\n\n\n<li>Not asking the developer for a detailed cost sheet.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tips_Before_Buying_an_Under-Construction_Property\"><\/span>Tips Before Buying an Under-Construction Property<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Buying an under-construction property can be a smart investment, but it also requires careful planning. Before making your decision, keep these important tips in mind to avoid unnecessary risks and unexpected costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before booking your dream home:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Verify the project&#8217;s RERA registration.<\/li>\n\n\n\n<li>Check construction progress.<\/li>\n\n\n\n<li>Review the payment schedule.<\/li>\n\n\n\n<li>Confirm GST applicability.<\/li>\n\n\n\n<li>Ask for the latest demand letter.<\/li>\n\n\n\n<li>Verify Completion Certificate timelines.<\/li>\n\n\n\n<li>Compare the total acquisition cost instead of just the base price.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Always verify whether the project is RERA registered. Learn more about <strong><a href=\"https:\/\/www.gangarealty.com\/blog\/rera-haryana-hrera-all-you-need-to-know-about-rera-haryana-before-you-buy-a-house\/\" title=\"\">RERA in Real Estate<\/a><\/strong> and why it matters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Pro Tip:<\/strong> Before paying the booking amount, request a detailed cost sheet from the developer that clearly lists the base price, GST, stamp duty, registration charges, PLC (if applicable), parking charges, maintenance deposits, and any other applicable fees. Understanding the complete financial commitment upfront helps you make an informed and confident home-buying decision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Buyers_Choose_Under-Construction_Projects\"><\/span>Why Buyers Choose Under-Construction Projects<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under-construction properties continue to attract homebuyers and investors because they often offer better value, flexible payment options, and stronger long-term appreciation. When purchased from a reputable developer, these projects can provide significant financial and lifestyle advantages.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite GST, under-construction homes continue to attract buyers because they often offer:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower entry prices<\/li>\n\n\n\n<li>Flexible payment plans<\/li>\n\n\n\n<li>Better appreciation potential<\/li>\n\n\n\n<li>More inventory choices<\/li>\n\n\n\n<li>Newer amenities and layouts<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For many long-term buyers, these advantages can outweigh the additional GST cost. Avoid costly mistakes by following our complete <strong><a href=\"https:\/\/www.gangarealty.com\/blog\/things-to-check-before-buying-a-flat-in-gurgaon\/\" title=\"\">Home Buying Checklist<\/a><\/strong> before booking your property.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_GST_Affect_the_Real_Estate_Sector\"><\/span>How Does GST Affect the Real Estate Sector?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The introduction of the <strong>Goods and Services Tax (GST)<\/strong> has significantly changed India&#8217;s real estate sector by bringing greater transparency and simplifying the indirect tax structure. Instead of multiple state and central taxes, GST introduced a unified tax system for under-construction properties, making property transactions more streamlined and easier to understand.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/How-GST-impacts-the-real-estate-sector-1024x683.png\" alt=\"How GST impacts the real estate sector\" class=\"wp-image-4322\" srcset=\"https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/How-GST-impacts-the-real-estate-sector-1024x683.png 1024w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/How-GST-impacts-the-real-estate-sector-300x200.png 300w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/How-GST-impacts-the-real-estate-sector-768x512.png 768w, https:\/\/www.gangarealty.com\/blog\/wp-content\/uploads\/2026\/07\/How-GST-impacts-the-real-estate-sector.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">While <strong>ready-to-move-in properties<\/strong> with a Completion Certificate (CC) or Occupancy Certificate (OC) remain exempt from GST, under-construction residential properties attract GST based on the applicable rate. Here&#8217;s how GST has influenced the real estate market:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Increased_Transparency\"><\/span>1. Increased Transparency<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">GST replaced multiple indirect taxes such as VAT, service tax, and various state-level levies with a single tax system. This has made pricing more transparent, helping buyers better understand the overall cost of purchasing a property.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Simplified_Tax_Structure\"><\/span>2. Simplified Tax Structure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A uniform GST framework has reduced the complexity of property taxation. Buyers no longer need to calculate multiple indirect taxes separately, making transactions more straightforward.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Greater_Confidence_for_Homebuyers\"><\/span>3. Greater Confidence for Homebuyers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The combination of GST and the Real Estate (Regulation and Development) Act (<a href=\"https:\/\/haryanarera.gov.in\/\" rel=\"nofollow\" title=\"\">RERA<\/a>) has improved transparency and accountability across the sector. Buyers now have clearer information about pricing, project timelines, and regulatory compliance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Impact_on_Under-Construction_Properties\"><\/span>4. Impact on Under-Construction Properties<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">GST is applicable only to <strong>under-construction residential properties<\/strong>, while completed properties with a valid Completion Certificate (CC) or Occupancy Certificate (OC) are not subject to GST. Buyers should therefore factor GST into the total cost when purchasing an under-construction home.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Boost_to_the_Affordable_Housing_Segment\"><\/span>5. Boost to the Affordable Housing Segment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The reduced <strong>1% GST rate<\/strong> for eligible affordable housing projects has helped make homeownership more accessible for many first-time buyers, supporting the government&#8217;s affordable housing initiatives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Better_Compliance_Across_the_Industry\"><\/span>6. Better Compliance Across the Industry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">GST has encouraged developers to maintain more accurate financial records, adopt digital invoicing, and follow standardized tax compliance practices, contributing to a more organized real estate sector.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Improved_Buyer_Awareness\"><\/span>7. Improved Buyer Awareness<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Homebuyers today are more informed about taxes, payment schedules, and the total cost of ownership. This has encouraged greater due diligence before making a property purchase.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Continued_Long-Term_Market_Growth\"><\/span>8. Continued Long-Term Market Growth<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Despite GST increasing the upfront cost of under-construction properties, India&#8217;s real estate sector continues to grow, driven by rapid urbanisation, infrastructure development, rising incomes, premium housing demand, and increasing institutional investment. For most buyers, choosing the right project, location, and developer remains far more important than GST alone when evaluating long-term returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re looking for <a href=\"https:\/\/www.gangarealty.com\/blog\/luxury-residential-properties-in-gurgaon-best-sectors-for-premium-living\/\" title=\"\">premium homes in Gurgaon<\/a>, explore Ganga Realty projects to discover thoughtfully designed luxury residences in some of the city&#8217;s most sought-after locations.<\/p>\n\n\n\n<div class=\"gr-projects\">\n<div class=\"gr-grid\">\n\n<!-- Project 1 -->\n<div class=\"gr-card\">\n<img decoding=\"async\" src=\"https:\/\/www.gangarealty.com\/images\/anantam85_bg.webp\" alt=\"anantam85\">\n<h3><span class=\"ez-toc-section\" id=\"Anantam_85\"><\/span>Anantam 85<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ultra-luxury residences on Dwarka Expressway offering expansive green spaces and world-class amenities.<\/p>\n<a href=\"https:\/\/www.gangarealty.com\/anantam-85\/\">View Project<\/a>\n<\/div>\n\n<!-- Project 2 -->\n<div class=\"gr-card\">\n<img decoding=\"async\" src=\"https:\/\/www.gangarealty.com\/images\/84_nandaka_grid.webp\" alt=\"nandaka84\">\n<h3><span class=\"ez-toc-section\" id=\"Nandaka_84\"><\/span>Nandaka 84<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Modern residential community in New Gurgaon designed for connectivity, comfort, and lifestyle.<\/p>\n<a href=\"https:\/\/www.gangarealty.com\/nandaka\/\">View Project<\/a>\n<\/div>\n\n<!-- Project 3 -->\n<div class=\"gr-card\">\n<img decoding=\"async\" src=\"https:\/\/www.gangarealty.com\/images\/kashi-residence-0.webp\" alt=\"kashi-residences\">\n<h3><span class=\"ez-toc-section\" id=\"Ganga_Kashi_Residences\"><\/span>Ganga Kashi Residences<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Premium residential development offering peaceful living with contemporary amenities.<\/p>\n<a href=\"https:\/\/www.gangarealty.com\/kashi-residences\/\">View Project<\/a>\n<\/div>\n\n<!-- Project 4 -->\n<div class=\"gr-card\">\n<img decoding=\"async\" src=\"https:\/\/www.gangarealty.com\/images\/ganga-valley-thamb.webp\" alt=\"ganga-valley\">\n<h3><span class=\"ez-toc-section\" id=\"Ganga_Valley_78\"><\/span>Ganga Valley 78<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Integrated township living with lush green spaces and a complete lifestyle ecosystem.<\/p>\n<a href=\"https:\/\/www.gangarealty.com\/gangavalley\/\">View Project<\/a>\n<\/div>\n\n<\/div>\n<\/div>\n\n<style>\n.gr-projects {padding:40px 0;}\n\n\/* 2 COLUMN GRID *\/\n.gr-grid {\ndisplay:grid;\ngrid-template-columns:repeat(2, 1fr);\ngap:30px;\n}\n\n\/* MOBILE RESPONSIVE *\/\n@media(max-width:768px){\n.gr-grid {\ngrid-template-columns:1fr;\n}\n}\n\n.gr-card {\nbackground:#fff;\nborder-radius:12px;\noverflow:hidden;\nbox-shadow:0 8px 25px rgba(0,0,0,0.08);\ntext-align:center;\npadding-bottom:20px;\ntransition:0.3s;\n}\n\n.gr-card:hover {\ntransform:translateY(-8px);\nbox-shadow:0 15px 40px rgba(0,0,0,0.15);\n}\n\n.gr-card img {\nwidth:100%;\nheight:220px;\nobject-fit:cover;\n}\n\n.gr-card h3 {\nfont-size:22px;\nmargin:15px 0 10px;\n}\n\n.gr-card p {\nfont-size:15px;\ncolor:#666;\npadding:0 20px;\nline-height:1.5;\n}\n\n.gr-card a {\ndisplay:inline-block;\nmargin-top:18px;\npadding:12px 22px;\nbackground:#111;\ncolor:#fff;\ntext-decoration:none;\nborder-radius:6px;\nfont-size:14px;\ntransition:0.3s;\n}\n\n.gr-card a:hover {\nbackground:#c59b4c;\n}\n<\/style>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding GST on under-construction property is essential before making any real estate investment. While GST increases the upfront purchase cost for under-construction homes, these projects often offer attractive pricing, flexible payment plans, and long-term appreciation potential.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At<strong> <a href=\"https:\/\/www.gangarealty.com\/\" title=\"\">Ganga Realty<\/a><\/strong>, transparency is a key part of the buying experience. Whether you&#8217;re looking for a luxury apartment or a long-term investment in Gurgaon, you receive clear information about pricing, taxes, payment schedules, and project documentation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_About_GST_on_Under-Construction_Property\"><\/span>FAQs About GST on Under-Construction Property <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"alignnone\"><style>#sp-ea-4325 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-4325.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-4325.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #444;}#sp-ea-4325.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-4325.sp-easy-accordion>.sp-ea-single {background: #eee;}#sp-ea-4325.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}<\/style><div id=\"sp_easy_accordion-1784289703\"><div id=\"sp-ea-4325\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"\" data-scroll-active-item=\"\" data-offset-to-scroll=\"0\"><div class=\"ea-card ea-expand sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Is_GST_applicable_on_under-construction_property_in_India\"><\/span><a class=\"collapsed\" id=\"ea-header-43250\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse43250\" aria-controls=\"collapse43250\" href=\"#\" aria-expanded=\"true\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-minus\"><\/i> Is GST applicable on under-construction property in India?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse collapsed show\" id=\"collapse43250\" data-parent=\"#sp-ea-4325\" role=\"region\" aria-labelledby=\"ea-header-43250\"> <div class=\"ea-body\"><p>Yes. GST is applicable when you purchase an under-construction residential property from a developer before the Completion Certificate (CC) or Occupancy Certificate (OC) is issued. The applicable GST rate is generally <strong data-start=\"534\" data-end=\"563\">1% for affordable housing<\/strong> and <strong data-start=\"568\" data-end=\"607\">5% for other residential properties<\/strong>, without Input Tax Credit (ITC).<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_the_GST_rate_on_under-construction_flats_in_2026\"><\/span><a class=\"collapsed\" id=\"ea-header-43251\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse43251\" aria-controls=\"collapse43251\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the GST rate on under-construction flats in 2026?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse43251\" data-parent=\"#sp-ea-4325\" role=\"region\" aria-labelledby=\"ea-header-43251\"> <div class=\"ea-body\"><p class=\"PDq2pG_selectionAnchorContainer\" data-start=\"713\" data-end=\"734\">The GST rates remain:<\/p><ul data-start=\"736\" data-end=\"846\"><li data-section-id=\"4zzqtj\" data-start=\"736\" data-end=\"781\"><strong data-start=\"738\" data-end=\"744\">1%<\/strong> for affordable housing (without ITC)<\/li><li data-section-id=\"2nf8fn\" data-start=\"782\" data-end=\"846\"><strong data-start=\"784\" data-end=\"790\">5%<\/strong> for non-affordable residential properties (without ITC)<\/li><\/ul><p data-start=\"848\" data-end=\"934\">Commercial properties may attract different GST rates based on applicable regulations.<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Is_GST_applicable_on_ready-to-move-in_properties\"><\/span><a class=\"collapsed\" id=\"ea-header-43252\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse43252\" aria-controls=\"collapse43252\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Is GST applicable on ready-to-move-in properties?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse43252\" data-parent=\"#sp-ea-4325\" role=\"region\" aria-labelledby=\"ea-header-43252\"> <div class=\"ea-body\"><p>No. If a property has received a Completion Certificate (CC) or Occupancy Certificate (OC) before the sale, GST is not applicable. However, buyers must still pay applicable stamp duty and registration charges.<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"How_do_I_calculate_GST_on_an_under-construction_property\"><\/span><a class=\"collapsed\" id=\"ea-header-43253\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse43253\" aria-controls=\"collapse43253\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How do I calculate GST on an under-construction property?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse43253\" data-parent=\"#sp-ea-4325\" role=\"region\" aria-labelledby=\"ea-header-43253\"> <div class=\"ea-body\"><p class=\"PDq2pG_selectionAnchorContainer\" data-start=\"18\" data-end=\"178\">To calculate GST on an under-construction property, multiply the <strong data-start=\"83\" data-end=\"102\">base sale price<\/strong> (excluding stamp duty and registration charges) by the applicable GST rate.<\/p><p data-start=\"180\" data-end=\"192\"><strong data-start=\"180\" data-end=\"192\">Formula:<\/strong><\/p><p data-start=\"194\" data-end=\"252\"><strong data-start=\"194\" data-end=\"252\">GST Amount = Base Property Price \u00d7 Applicable GST Rate<\/strong><\/p><p data-start=\"254\" data-end=\"266\"><strong data-start=\"254\" data-end=\"266\">Example:<\/strong><\/p><ul data-start=\"268\" data-end=\"386\"><li data-section-id=\"87395\" data-start=\"268\" data-end=\"307\">Base Property Price: <strong data-start=\"291\" data-end=\"307\">\u20b91,00,00,000<\/strong><\/li><li data-section-id=\"15sy61s\" data-start=\"308\" data-end=\"326\">GST Rate: <strong data-start=\"320\" data-end=\"326\">5%<\/strong><\/li><li data-section-id=\"uxh8do\" data-start=\"327\" data-end=\"355\">GST Payable: <strong data-start=\"342\" data-end=\"355\">\u20b95,00,000<\/strong><\/li><li data-section-id=\"1k0infu\" data-start=\"356\" data-end=\"386\"><strong data-start=\"358\" data-end=\"373\">Total Cost:<\/strong> \u20b91,05,00,000<\/li><\/ul><p data-start=\"388\" data-end=\"680\" data-is-last-node=\"\" data-is-only-node=\"\">For <strong data-start=\"392\" data-end=\"414\">affordable housing<\/strong>, the GST rate is <strong data-start=\"432\" data-end=\"438\">1%<\/strong>, while <strong data-start=\"446\" data-end=\"487\">non-affordable residential properties<\/strong> attract <strong data-start=\"496\" data-end=\"506\">5% GST<\/strong> (both without Input Tax Credit). GST is applicable only on under-construction properties sold before the Completion Certificate (CC) or Occupancy Certificate (OC) is issued<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Is_GST_applicable_on_resale_properties\"><\/span><a class=\"collapsed\" id=\"ea-header-43254\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse43254\" aria-controls=\"collapse43254\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Is GST applicable on resale properties?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse43254\" data-parent=\"#sp-ea-4325\" role=\"region\" aria-labelledby=\"ea-header-43254\"> <div class=\"ea-body\"><p>No. GST is generally not applicable on the purchase of resale residential properties from individual owners.<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Does_GST_apply_to_luxury_apartments\"><\/span><a class=\"collapsed\" id=\"ea-header-43255\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse43255\" aria-controls=\"collapse43255\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Does GST apply to luxury apartments?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse43255\" data-parent=\"#sp-ea-4325\" role=\"region\" aria-labelledby=\"ea-header-43255\"> <div class=\"ea-body\"><p>Yes. Under-construction luxury apartments generally attract <strong data-start=\"2417\" data-end=\"2427\">5% GST<\/strong> without Input Tax Credit, provided they are sold before the Completion Certificate or Occupancy Certificate is issued.<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Where_can_I_find_premium_under-construction_projects_in_Gurgaon\"><\/span><a class=\"collapsed\" id=\"ea-header-43256\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse43256\" aria-controls=\"collapse43256\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Where can I find premium under-construction projects in Gurgaon?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse43256\" data-parent=\"#sp-ea-4325\" role=\"region\" aria-labelledby=\"ea-header-43256\"> <div class=\"ea-body\"><p>If you&#8217;re planning to invest in a premium residential property, <strong data-start=\"3250\" data-end=\"3283\">Explore Ganga Realty Projects<\/strong> to discover thoughtfully designed luxury communities across Gurgaon, offering excellent connectivity, modern amenities, and long-term investment potential.<\/p><\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Planning to buy an under-construction flat? Before you book your dream home, it&#8217;s important to understand how GST on under-construction property works. Unlike ready-to-move-in homes, properties that are still under construction are subject to GST because they are treated as a construction service under Indian tax laws. Knowing the applicable GST rates, how the tax [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4315,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-4305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/posts\/4305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/comments?post=4305"}],"version-history":[{"count":14,"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/posts\/4305\/revisions"}],"predecessor-version":[{"id":4328,"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/posts\/4305\/revisions\/4328"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/media\/4315"}],"wp:attachment":[{"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/media?parent=4305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/categories?post=4305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gangarealty.com\/blog\/wp-json\/wp\/v2\/tags?post=4305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}