Explained | Planning to buy a house in India? Here’s how much GST you will pay

Planning to buy a house in India and unsure about how much Goods and Services Tax (GST) you’ll be charged? Here’s a guide to help navigate the tax implications of your property purchase:If you’re buying an under-construction flat, the GST rate depends on certain qualifying criteria.For instance, if the property costs less than ₹45 lakh, has a carpet area of less than 60 square metres, and is located in a metro city, it qualifies as affordable housing.In non-metro cities, properties costing under ₹45 lakh and with carpet areas of less than 90 square metres also fall under the affordable housing category.In both cases, buyers are required to pay 1% GST on the full property value. However, this does not include input tax credit, which is not applicable under the affordable housing bracket.For properties that do not meet the affordable housing criteria, a GST rate of 5% on the full value is applicable. Again, buyers cannot claim input tax credit in this case.No GST is charged on ready-to-move-in homes or resale flats, provided the builder has obtained a Completion Certificate. The same rule applies to land-only transactions.Buyers in such scenarios are advised to verify that the Completion Certificate has been issued and to request a formal GST invoice from the seller or builder.It is important to note that GST is separate from stamp duty and registration charges, which must be paid independently and will contribute to the total cost of acquiring the property.The guidance comes as more homebuyers seek clarity on tax obligations amid varying property prices and classifications across cities.(Edited by : Poonam Behura)

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