APPLICABILITY AND BREAKDOWN OF GST COMPLIANCE ON SPLIT PAYMENTS MADE TO LANDOWNER AND LEVELOPER

• Amount received AFTER Completion: No GST applies (Falls under Schedule III).

• Amount received BEFORE Completion: GST applies on the developer's share (Treated as a supply of construction services under Schedule II).

A key point many homebuyers miss: GST on a property purchase depends on whether the payment was made before or after the Completion Certificate (CC).

If the ₹49 lakh developer portion was paid after the CC issued on March 25, 2026, GST generally does not apply to that portion.

But if any amount was paid before March 25, 2026, GST may apply to those pre-CC payments. The applicable rate can be 1% for qualifying affordable housing or 5% for other residential units.

So the most important question is: Were any payments made to the developer before March 25, 2026? That determines the GST exposure.