1% affordable (≤₹45L + size limit), 5% other under-construction, ZERO ready possession. Commercial 12% with ITC. Builders lost ITC post-April 2019.
REAL ESTATE GST: (1) AFFORDABLE HOUSING (carpet area ≤ 60 sqm metro / 90 sqm non-metro AND price ≤ ₹45L): 1% GST (no ITC). (2) OTHER UNDER-CONSTRUCTION: 5% GST (no ITC). (3) READY POSSESSION (Occupancy Certificate received): ZERO GST. (4) COMMERCIAL UNDER-CONSTRUCTION: 12% GST (with ITC). (5) RESALE properties: ZERO GST (capital gains applies). KEY DISTINCTION: under-construction = GST, ready = no GST.
BUYER GST TREATMENT: (1) UNDER-CONSTRUCTION purchase: pay GST on agreement value (separately from stamp duty). (2) Example ₹1cr flat (other category): 5% GST = ₹5L on top of property cost + 7% stamp duty Mumbai = total ₹1.12cr outlay. (3) READY POSSESSION: NO GST. Saves significantly. (4) AFFORDABLE: 1% GST = ₹50K on ₹50L flat. (5) NO INPUT TAX CREDIT for buyer — final cost. STRATEGIC: ready possession lower total cost. Under-construction higher upfront.
POST-APRIL 2019 GST OVERHAUL: (1) Builders LOST INPUT TAX CREDIT (ITC) — major change. (2) Rates DROPPED: 1% affordable, 5% other (vs previous 8% + ITC). (3) NET IMPACT on buyer: similar or slightly lower. (4) BUILDERS pay GST on inputs (cement, steel, labor) but CAN'T claim ITC. (5) Cost passed to buyer in property price. (6) COMMERCIAL still has ITC — different treatment. (7) NEW PROJECTS post-April 2019 default to new scheme. ONGOING projects had choice to opt.
AFFORDABLE HOUSING for 1% GST: (1) CARPET AREA ≤ 60 sqm in metro cities (Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad). (2) CARPET AREA ≤ 90 sqm in other cities/towns. (3) AGREEMENT VALUE ≤ ₹45L. (4) BOTH conditions must apply. EXAMPLE: 55 sqm carpet in Mumbai at ₹40L = affordable, 1% GST. 70 sqm carpet in Mumbai at ₹45L = NOT affordable (area exceeds), 5% GST. STRATEGIC: affordable bracket buyers save 4% GST (₹2-3L on ₹50L property).
PROPERTY GST STRATEGY: (1) READY POSSESSION purchases: ZERO GST. Saves ₹5-10L on under-construction. (2) Wait for OCCUPANCY CERTIFICATE before purchase if possible. (3) AFFORDABLE bracket target: 1% vs 5% saves 4%. (4) COMMERCIAL property: 12% GST + ITC — works for business buyers. (5) REGISTERED BUYER (GST holder buying for business use): can claim ITC on commercial. (6) UNDER-CONSTRUCTION + PRE-COMPLETION resale: GST applies. (7) NRI BUYERS: same rates. PAN + GST applicable. (8) CONSULT property + GST specialist CA for complex transactions.