How GST impacts property transactions in 2025 🏡
🏗️ Under-construction properties 🚫 No GST on: ✅ Completed homes ✅ Resale flats ✅ Land deals
🏠 Affordable homes – 1% (No ITC) 🏢 Other homes – 5% (No ITC) 🏬 Commercial – 12% (ITC available) 🧾 Land cost deducted before GST
⚙️ ITC = Input Tax Credit ✅ Builders claim GST refund on materials ❌ Buyers don’t get ITC under new rules 💸 Only applies if GST rate is 12%
✅ GST gives clear pricing 💡 Only under-construction homes attract GST 🏘️ Ready-to-move = GST free 💰 Watch out for “embedded GST” in price
🔄 Simplified compliance 💸 ITC boosts profit margins 📉 Developers must manage cost pass-through smartly
🏠 Personal home rent = No GST 🏢 Commercial rent = 18% GST 💼 Business using residential = GST via RCM 📊 Threshold: ₹20L+ rent = GST mandatory
⚖️ Patna HC: JDAs can trigger GST pre-possession 🏛️ Ahmedabad: Lease deed = 18% GST → switched to sale deed
✅ Confirm project status (under construction vs ready) 🧾 Ask builder: ITC claimed? Passed to you? 📄 Land vs construction cost must be separate
💡 GST = simplified, transparent buying ✅ 1% for affordable homes = big relief 🚫 No GST on resale or completed flats ⚠️ Understand GST before you sign