Payment to builder

GST on completed Flats/Property or ready-to-move-in property

Transfer of completed flats, property or ready-to-move-in property will not involve any service part to the buyer. Hence, GST will not be applicable in such transactions. Because it is neither supply of goods nor service.

Hence, if you are buying a completed flats/property or ready-to-move-in property, then you may save the GST cost.


GST Tax Rate for under construction flats, properties or commercial properties

The applicable GST rate for under construction flats, properties or commercial properties in land or undivided share of land is currently at 12% with full Input Tax Credit (ITC).

The actual GST rate for under construction flats, properties or commercial properties is 18%. However, 1/3 of 18% is deemed as the value of land or undivided share of land supplied to the buyer of the property.

Refer this below image for the clarification given by Central Board of Excise and Customs (CBEC).

Have you got the possession of your flat

possession not given. flat is under construction

Then gst is applicable.

Yes ,.. the GST applicable, Builder is liable to charge GST

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