Do you have to pay GST when buying a house?

There are certain charges incurred by the Government on purchase of goods, services. This charge is levied and paid by the citizens in the form of GST. If you are wondering do you have to pay GST on property purchase and  what will be the GST amount. Read my answer below, I will mention all the details.

To answer your question, yes. You will be required to pay GST when buying a house. Each year the GST rate gets announced by the government on 1st April aka the beginning of a new fiscal year. 

• Residential properties that are not part of the affordable housing segment will be charged with  GST. The  charges on a flat purchase will be paid at 5% without an input tax credit (ITC).

• Residential properties included in the affordable housing segment, 1% GST will be levied without an ITC.

• For Under Construction properties, the GST on a flat purchase rate is 12%

I hope your doubts about GST on property purchase have been cleared.

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“Do you have to pay GST when buying a house?” is one question that comes to everyone’s mind when they plan to buy a property. Well, let me tell you that property buyers in India have to pay a GST on the purchase of under-construction properties, such as apartments and flats at the rate of 5% for non-affordable housing and 1% for affordable housing. The GST rates are announced at the beginning of the fiscal year i.e., 01

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April of each year

Housing units costing up to Rs. 45,00,000 are considered as affordable housing as per the government-determined definition. However, the unit needs to conform to some measurements for qualifying as affordable housing.

For instance, a housing unit in a metropolitan city like Delhi is considered to be an affordable house if it measures up to 60 sq m (carpet area) and costs up to Rs 45,00,000. Similarly, a housing unit in non-metropolitan cities is considered to be an affordable house, if it measures up to 90 square meters of carpet area and costs up to Rs 45,00,000.

This is all on the GST on house purchase.

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I hope now understand the GST on property purchase concept.