Do I pay GST on a ready-to-move flat?

No. Once the completion certificate is issued the sale is outside GST. That is often a material difference against an equivalent under-construction property.

Is stamp duty payable on the agreement value?

On the higher of agreement value and the state circle rate. Where circle rate is higher, the duty is computed on that instead.

TaxgstIndia only

GST on Under-Construction Property

GST, stamp duty and registration on a property purchase. GST applies only to under-construction property: once a completion certificate is issued the sale is outside GST entirely, which is a large difference in cost.

Also called: property gst calculator, stamp duty and gst.

GST

₹3,25,000

₹3,25,000 of GST at 5%, on top of ₹3,90,000 of stamp duty and ₹65,000 of registration. Total acquisition cost is ₹72,80,000, which is 12% above the property value in taxes alone. GST applies because the property is sold before its completion certificate, and no input tax credit is available at this rate.

GST rate

Stamp duty

₹3,90,000

Registration charge

₹65,000

Total taxes and charges

₹7,80,000

Total acquisition cost

₹72,80,000

Taxes as a share of value

12%

On applicability

GST applies because the property is sold before its completion certificate, and no input tax credit is available at this rate.

How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

A property sold before its completion certificate is a supply of construction services and attracts GST, at a lower rate for affordable housing. After the certificate is issued, or on any resale, the sale is a transfer of immovable property and outside GST altogether. Stamp duty and registration apply in every case and are set by the state. The GST on under-construction property is charged without input tax credit under the current scheme, which is why the rate is low relative to the standard slabs.

GST applies only before a completion certificate is issued; stamp duty always applies

V: Property value

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

an under-construction flat

Property value: ₹65,00,000
Property: Under construction, other
Stamp duty rate: 6%
Registration charge: 1%

GST₹3,25,000

5% GST plus 6% stamp duty plus 1% registration

Open this example

a ready-to-move flat attracts no GST

Property value: ₹65,00,000
Property: Ready to move with completion certificate
Stamp duty rate: 6%
Registration charge: 1%

GST₹0

boundary: the completion certificate line

Open this example

Method and limits

What it assumes

The value entered is the agreement value.

What it deliberately does not model

Stamp duty rates vary by state and often by the buyer, with concessions for women in several states.
The affordable housing definition has both a value and a carpet area condition.
Where stamp duty is charged on circle rate rather than agreement value, the base differs.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Do I pay GST on a ready-to-move flat?: No. Once the completion certificate is issued the sale is outside GST. That is often a material difference against an equivalent under-construction property.
Is stamp duty payable on the agreement value?: On the higher of agreement value and the state circle rate. Where circle rate is higher, the duty is computed on that instead.