GST on Under-Construction Property in India (2026)

GST applies only while a property is under construction, meaning you pay it before the builder receives the completion certificate or hands over first occupation. For residential flats, villas and builder floors the rate is 5% of the agreement value with no input tax credit, or 1% without ITC for affordable housing. These rates have been in force since 1 April 2019, and the GST 2.0 overhaul effective 22 September 2025 left them unchanged.

Affordable housing is defined by two caps that must both be met: a unit priced up to Rs 45 lakh and with carpet area up to 60 sqm in metro areas (90 sqm in non-metros). Gurgaon sits inside the Delhi NCR metro zone for this rule, and in practice almost every luxury villa, builder floor or high-rise apartment here is priced well above Rs 45 lakh, so buyers of under-construction stock in Gurgaon should budget for 5%, not 1%.

No GST is charged on ready-to-move homes that already carry a completion or occupancy certificate, on resale property, or on the sale of bare plots and land. So a ready builder floor, a resale villa in DLF or a registered residential plot carries zero GST. The gap is real money: on a Rs 3 crore under-construction apartment, 5% GST is roughly Rs 15 lakh over and above the price.

GST is separate from, and additional to, Haryana stamp duty and registration charges, which you pay on the circle rate or transaction value at the registry. The 2025 reforms also cut GST on cement from 28% to 18%, which may ease builder input costs over time, though the buyer-facing 5% and 1% rates stay the same. Commercial under-construction units are taxed with input tax credit: the long-standing rate is 12%, though some advisers now apply 18% after the September 2025 slab changes, so confirm the exact figure with the developer or a chartered accountant before you sign.