Real estate GST

GST on Under-Construction Flats: 1% or 5% Rate Calculator

Reviewed by CA Nikhil Gupta · Last reviewed 11 October 2026

Enter the consideration, carpet area and location to see whether the 1% affordable-housing rate or the 5% rate applies and the GST payable.

Enter your figures

The fields start with sample figures. Replace them with your own; nothing is sent to a server.

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How the calculation works

Residential apartment in a project, consideration up to ₹45 lakh and carpet area up to 60 sq m (metro) or 90 sq m (other cities): 1% without input tax credit.
Other residential apartments, and commercial apartments in a real estate project: 5% without input tax credit.
GST = consideration × the rate; the page also shows the gross amount.

Background and professional notes

The Finin2min 2-minute explanation

Estimate post-April 2019 effective GST on eligible under-construction residential and residential-real-estate-project commercial apartments.

Worked Indian example

A qualifying affordable flat with ₹40 lakh total agreement consideration and 55 sq m carpet area in a metro city may fall under the effective 1% no-ITC schedule: indicative GST ₹40,000.

Exact calculation logic

For documented eligible post-2019 projects, the worksheet applies an effective rate of 1% to screened affordable apartments or 5% to other eligible apartments. These are effective rates after the prescribed land treatment; do not separately deduct land a second time.

What the result does not certify

This tool assumes a qualifying construction supply before completion/first occupation and the relevant no-ITC scheme. Old-regime options, pre-2019 project transitions, 80% registered procurement and RCM need separate documentation.

Frequent errors and compliance checks

A project may fail the legal affordable-housing classification even if price and area seem small enough. Completed apartments, pure commercial buildings and mixed-project thresholds cannot be reduced to one universal rate.

Assumptions and what this calculator does not cover

Only for supplies before the completion certificate or first occupation. Old-regime options, joint development, land value and reversal of credit are not modelled.
Whether a project qualifies as affordable also depends on the definitions in the notification.

Frequently asked questions

Is GST charged on a ready-to-move flat?

No GST applies to a flat sold after the completion certificate, provided no part of the consideration is received before it.

Does a completed apartment always bear this GST?

No; the time and nature of supply and completion certificate position are critical.

Can the builder claim ITC at 1% or 5%?

Those effective rate structures ordinarily operate without input tax credit, subject to exact statutory conditions.

What if a 2019 ongoing project elected the earlier scheme?

Use the legally elected project regime and transition rules instead of this new-regime illustration.

Official sources and further reading

Rates and rules were checked against these sources on 11 October 2026. Notifications and standards change; confirm on the official site before you file, book or advise.

Educational working tool. Results follow the scope and assumptions above and the figures you enter; they are not tax, audit, legal or accounting advice. Tax and accounting treatment depends on facts and on the law or standard in force for the relevant period, so verify the official source or consult a professional before you rely on a result.

Last reviewed: 11 October 2026

Guides that use this calculator

Background, worked examples and the rules behind these numbers.