GST in Real Estate

GST in Real Estate

Goods and Services Tax (GST) in Indian Real Estate-


What is GST (Goods and Services Tax)?

Real Estate (Regulation and Development) Act (RERA) on July 1, 2017, brought major reforms tax reforms in Indian real estate sector when they introduced Goods and Services Tax (GST) in Indian Real Estate. 

Goods and Services Tax (GST) is a unified tax for all the indirect taxes that were prevalent in real estate industry like the Service Tax, VAT, Octroi, surcharges, central excise tax and other indirect taxes of the similar nature. Thus, making the taxation system in real estate simpler and efficient.

GST taxation slabs –


Criteria Affordable Home Under Construction Ready-to-move
Pricing Below Rs 45 lacs Above Rs 45 lacs
GST Applicable 1% 5% Not Applicable


Implications of GST on homebuyers

 The new tax law aims to increase efficiency and transparency by removing multiple taxes and reducing the procedure and applications.

 Changes in taxation after GST-


Sale in the state

(Service Tax + VAT) TO (CGST+SGST)

Intra state sales

(Service TAX+ Central Sales Tax) TO (IGST)

GST implications in Under Construction and Ready-to-Move properties is explained in Taxation relating to Real Estate.

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