GSTInvoice

GST Rates

GST on Real Estate in India 2026 — Under Construction, Resale, Commercial

GST on real estate applies only to under-construction properties sold before completion. Ready-to-move properties and resale properties are exempt from GST — only stamp duty applies. Builders, developers, and real estate agents each have different GST implications.

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GST Rates on Real Estate

Property Type GST Rate ITC Available
Affordable housing (carpet ≤60 sqm, value ≤₹45L) 1% No
Residential apartments (other) 5% No
Commercial properties (shops, offices) 12% No
Ready-to-move / completed property Nil (0%) N/A
Resale property Nil (0%) N/A
Land purchase Nil (0%) N/A
Real estate agent commission 18% Yes

GST for Real Estate Agents

Real estate brokers and agents charge 18% GST on their commission or brokerage fee (SAC 997212). This is separate from the property GST. Example: A Mumbai real estate agent charges 2% brokerage on a ₹80,00,000 property sale. Brokerage = ₹1,60,000. GST at 18% = ₹28,800. Total agent invoice: ₹1,88,800. The agent must charge and remit GST on their commission regardless of who pays it.

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FAQs

Is GST applicable on resale property?

No. Resale of completed, ready-to-move properties is exempt from GST. Only stamp duty and registration charges apply.

How is GST calculated on under-construction flat?

GST applies on the construction component only. One-third of the total flat value is deemed the land value (no GST). GST applies on two-thirds: for a ₹60L flat, GST is on ₹40L at 5% = ₹2L.

Do builders need GST registration?

Yes, builders selling under-construction properties must register for GST (mandatory regardless of turnover). They charge 1% or 5% on residential and 12% on commercial projects.

Can homebuyers claim ITC on property GST?

No. ITC is not available for homebuyers on residential property purchase. The 1% and 5% rates reflect that builders have no ITC (making the effective tax lower).

Why Businesses Stop Using Excel for GST Invoices

Manual GST calculation mistakes

One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.

Slow invoice creation

Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.

Formatting breaks on every device

Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.

No easy sharing or payment link

Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.

Incorrect tax type (IGST vs CGST+SGST)

Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.

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Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.

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