How do you use the GST on property calculator?
- Enter the agreement value before GST and the carpet area of the flat in sq ft.
- Say if you are buying under construction, a ready home after its completion certificate, or a resale.
- Read the GST, the rate used and the price with GST. If the builder’s quote already includes GST, or part of the price is paid after completion, open “Adjust GST rates and payment details”.
When do you pay GST on a home?
GST applies when you buy a flat that is still under construction from a builder. It does not apply to a ready home where the full price is paid after the completion certificate, or to a resale from another owner. Stamp duty and registration are separate state charges, not GST.
- 5% without input tax credit on residential flats, from 1 April 2019.
- 1% without input tax credit on affordable flats: carpet area up to 60 sq m (about 646 sq ft) in a metropolitan city such as Bengaluru, and a price up to ₹ 45 lakh. Both tests must be met.
- These are effective rates after the deduction for land, so they apply to the full agreement value.
The GST rate changes of September 2025 cut rates on inputs such as cement but left these residential rates unchanged.
How the GST is worked out
1
Affordable test
Carpet area ≤ 60 sq m (sq ft ÷ 10.7639) and price ≤ ₹ 45,00,000 → 1%, else 5%2
Amount taxed
Price before GST − amount paid after the completion certificate3
GST
Amount taxed × rate (a GST-inclusive quote is divided by 1 + rate first)Worked example: ₹ 1 crore flat, 1,200 sq ft carpet
The flat is over 60 sq m and over ₹ 45 lakh, so the 5% rate applies: GST is ₹ 5,00,000 and the price with GST is ₹ 1,05,00,000. If ₹ 20 lakh of the price falls due after the completion certificate, GST is charged on ₹ 80 lakh only: ₹ 4,00,000.
Worked example: ₹ 42 lakh flat, 600 sq ft carpet
600 sq ft is 55.7 sq m, under the 60 sq m limit, and the price is under ₹ 45 lakh, so the 1% rate applies: GST is ₹ 42,000. The same flat at ₹ 48 lakh would pay 5%.
GST at different prices and sizes
| Price | Carpet area | Rate | GST |
|---|---|---|---|
| ₹ 40,00,000 | 600 sq ft (55.7 sq m) | 1% | ₹ 40,000 |
| ₹ 45,00,000 | 640 sq ft (59.5 sq m) | 1% | ₹ 45,000 |
| ₹ 48,00,000 | 600 sq ft (55.7 sq m) | 5% | ₹ 2,40,000 |
| ₹ 40,00,000 | 700 sq ft (65.0 sq m) | 5% | ₹ 2,00,000 |
| ₹ 80,00,000 | 1,100 sq ft (102.2 sq m) | 5% | ₹ 4,00,000 |
| ₹ 1,50,00,000 | 1,800 sq ft (167.2 sq m) | 5% | ₹ 7,50,000 |
What should you keep in mind?
- Ask the builder for a payment schedule showing which instalments fall before and after the completion certificate.
- Check that the agreement states the carpet area clearly, since the affordable test uses carpet area, not super built-up area.
- This page covers flats in residential projects. Commercial units and plots follow other rules, so please check those with your Chartered Accountant.
Frequently asked questions
5% of the agreement value, or 1% if the flat is affordable: carpet area up to 60 sq m and price up to ₹ 45 lakh. Neither rate allows input tax credit. On a ₹ 1 crore flat with 1,200 sq ft of carpet area, GST is ₹ 5,00,000.
No, if the whole price is paid after the completion certificate is issued. A resale from another owner also carries no GST. If you pay part of the price before the certificate and part after, GST applies only to the part paid before it.
In a metropolitan city such as Bengaluru, a flat with carpet area up to 60 sq m (about 646 sq ft) and a price up to ₹ 45 lakh. Both conditions must hold. Outside the six metropolitan areas, the area limit is 90 sq m, with the same ₹ 45 lakh limit.
No. The September 2025 changes cut GST on inputs such as cement from 28% to 18%, but the 5% and 1% rates on residential flats stayed the same. Builders still cannot claim input tax credit under these rates, so any saving depends on their costs.
No. Stamp duty, cess, surcharge and the registration fee are state charges paid at registration, worked out on the price or guidance value. GST is part of what you pay the builder. Indicative only. Please verify with your Chartered Accountant before acting.
No. A home buyer cannot claim input tax credit, and GST on a home you live in is not a separate income-tax deduction. It does form part of the cost of the flat, which matters when you later sell. Please check with your Chartered Accountant.
Related answers and guides
- Affordable Housing GST: Does Your Flat Get 1%?
- GST on a New Flat: 1%, 5% or Zero?
- Resale vs New Flat in Bengaluru: Price, Tax and Risk in 2026
- Buying Under-Construction in Bengaluru: 20 Questions
Sources
- CBIC / GST Council real estate FAQ (F. No. 354/32/2019-TRU): 5% and 1% effective rates without ITC from 1 April 2019; affordable housing definition; metropolitan cities include Bengaluru.
- GST Council, 56th meeting (September 2025): input rates changed, residential rates unchanged. Checked 19 Oct 2026.
Indicative only. Please verify with your Chartered Accountant before acting.
Buying a home in Bengaluru? Talk to an acre&key advisor.