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Everything You Need to Know About GST on Real Estate in 2024

GST in Real Estate

GST, or Goods and Services Tax, was introduced in India in 2024. It is a single tax applicable on products and services, replacing other taxes levied before 2017, including VAT and services taxes. GST was introduced in India to simplify the transaction process and to make it more transparent and efficient.

Like regular products and services, the real estate industry also levies GST on property purchase. However, one must note that only under-construction projects can charge GST. Besides this, ready-to-move-in and completed projects have no rights to apply GST.

GST in Real Estate

In the real estate industry, Goods and Services Tax is implied on different types of property, including the sale of commercial properties, residential properties, or land.

Here’s the impact of GST on real estate market.

  • Under-Construction Properties

If any developer or builder sells a project, which is under construction and yet to be completed, then the property applies GST at the time of selling. GST is calculated based on the percentage of the property’s value, construction charges, and other charges. The GST can vary for every type of property [commercial, residential, and land].

  • Completed Properties

For all the projects that are completed and ready to be sold off, GST is not applicable. However, the buyer must still undergo several other charges, including stamp duty and registration fees. These charges are exempt from GST.

  • ITC [Input Tax Credit] in GST

The developers and builders can anytime claim ITC for GST for the raw materials they use during the construction phase. ITC helps the developers & builders reduce double taxation, ultimately allowing them to minus the extra burden of charges.

  • Impact of GST on Affordable Housing

Affordable housing in real estate levies less GST, therefore, capturing a large segment of homebuyers with lower budgets for investment.

  • Renting & Leasing of Real Estate Properties

In the usual scenario, renting and leasing of residential properties do not attract GST. But, in the case of commercial properties, a certain amount must be paid with the rent value.

  • Real Estate Services

All the services that fall under real estate transactions, agents’ fees, etc., are entirely subject to GST and may vary from each other.

Impact of GST on Construction Materials

GST’s impact on real estate construction materials is notable. With GST’s unified tax structure, input tax credit, and reduced cascading effect, the industry experienced streamlined tax processes and increased compliance. Builders could claim credits for taxes paid on raw materials, curbing costs. However, immediate pricing changes varied; some materials became cheaper due to input credit, while others saw slight hikes due to revised tax rates.

GST on Property Purchase in India in 2024

Here are the current GST charges applicable on different types of property in India in 2024.

  • GST on Affordable Housing – 1%
  • GST on Under-Construction Properties – 5%
  • GST on Ready-to-move-in Properties – NA


Documents Required for New GST Registration

Before registering for GST online, ensure that all documents are ready for a hassle-free process and smooth registration.

  • Proof of Identity [Aadhar Card/ PAN Card/ Passport/ Any other Government ID]
  • Business Address Proof
  • Bank Account Details & Proof
  • Business Constitution Documents
  • Proof of Registration Proof
  • Digital Signature Certificate [DSC]
  • Business Activity Data
  • Business Turnover Proof
  • Photographs


GST Registration Process

To apply for GST, one has to undergo the below-mentioned process.

  • Visit the GST Portal Online
  • Click on ‘New Registration’
  • Fill out the Application Form
  • Part A: Fill up the Business Details
  • Part B: Verify the Details
  • Upload Necessary Documents as per instructions
  • Business Details
  • Authorized Identity Details
  • Verify & Submit
  • Reviewing of Application
  • Receive GST Certification Details
  • Update Business Details [at a later stage to keep the portal up to date]



To summarise the GST guide on real estate, one must acquaint oneself with the terminologies related to GST to prevent any surcharge and follow a streamlined process. Besides this, GST in India is subject to various changes depending on government rules. Hence, staying updated with this segment’s latest news is crucial.

Another significant suggestion before investing in any real estate property is to determine brand credibility. Ensure to do a background check and invest in reputed developers like Pharande Spaces and other leading ones in the industry.


1. What is the effect of GST on real estate?

The biggest effect of GST on real estate is that it has streamlined tax processes and increased compliance. GST’s unified tax structure, input tax credit, and reduced cascading effect have made it easier for the industry people to cooperate.

2. What is the impact of GST on buyers of real estate?

GST for real estate buyers may vary according to the property. If you go for affordable housing, then on average the GST rate is 1% without ITC, if you are buying luxury property then the GST rate can go up to 5% without ITC, however, usually there is zero GST on ready to move in properties and land purchase.

3. Who should pay GST, buyer or seller?

Under the GST regime, the buyer of the property is supposed to pay the GST for under construction buildings.

4. What is GST on residential property?

The GST on ready to move in property or land purchase is zero, whereas the GST on under-construction buildings may vary, it goes from 1% to 5% according to the type of the property if it’s affordable or luxury.

5. Who is eligible for GST refund?

A refund can be claimed by any unregistered person when they have paid GST to the builder against the receipt of the construction service. Even if the contract has been terminated in the future, the refund can be claimed by the buyer, however, the time limit to issue a credit note has been lapsed on the date of termination.

Privacy Policy

This Privacy Policy governs the manner in which Pharande Spaces collects, uses, maintains and discloses information collected from users (each, a "User") of the https://pharandespaces.com/ website ("Site"). This privacy policy applies to the Site and all products and services offered by Pharande Spaces.

Personal identification information

We may collect personal identification information from Users in a variety of ways, including, but not limited to, when Users visit our site, fill out a form, and in connection with other activities, services, features or resources we make available on our Site. Users may be asked for, as appropriate, name, email address, mailing address, phone number. Users may, however, visit our Site anonymously. We will collect personal identification information from Users only if they voluntarily submit such information to us. Users can always refuse to supply personally identifying information, except that it may prevent them from engaging in certain Site related activities.

Non-personal identification information

We may collect non-personal identification information about Users whenever they interact with our Site. Non-personal identification information may include the browser name, the type of computer and technical information about User's means of connection to our Site, such as the operating system and the Internet service providers utilized, and other similar information.

Web browser cookies

Our Site may use "cookies" to enhance User experience. The user's web browser places cookies on their hard drive for recordkeeping purposes and sometimes to track information about them. The user may choose to set their web browser to refuse cookies, or to alert you when cookies are being sent. If they do so, note that some parts of the Site may not function properly.

How we use collected information

Pharande Spaces may collect and use Users personal information for the following purposes:

  • To improve customer service The information you provide helps us respond to your customer service requests and support needs more efficiently.
  • To personalize the user experience We may use information in the aggregate to understand how our Users as a group use the services and resources provided on our Site.
  • To improve our Site We may use the feedback you provide to improve our products and services.
  • To send periodic emails We may use the email address to respond to their inquiries, questions, and/or other requests. If User decides to opt-in to our mailing list, they will receive emails that may include company news, updates, related product or service information, etc. If at any time the User would like to unsubscribe from receiving future emails, we include detailed unsubscribe instructions at the bottom of each email or User may contact us via our Site.

How we protect your information

We adopt appropriate data collection, storage and processing practices and security measures to protect against unauthorized access, alteration, disclosure or destruction of your personal information, username, password, transaction information and data stored on our Site.

Private and sensitive data exchange between the Site and its Users happens after an SSL secured communication channel and is encrypted and protected by digital signatures.

Sharing your personal information

We do not sell, trade, or rent Users personal identifiable information to others. We may share generic aggregated demographic information not linked to any personal identifying information regarding visitors and users with our business partners, trusted affiliates and advertisers for the purposes outlined above.We may use third party service providers to help us operate our business and the Site or administer activities on our behalf, such as sending out newsletters or surveys. We may share your information with these third parties for those limited purposes, provided that you have given us your permission.

Changes to this privacy policy

Pharande Spaces has the discretion to update this privacy policy at any time. When we do, we will revise the updated date at the bottom of this page. We encourage Users to frequently check this page for any changes to stay informed about how we are helping to protect the personal information we collect. You acknowledge and agree that it is your responsibility to review this privacy policy periodically and become aware of modifications.

Your acceptance of these terms

By using this Site, you signify your acceptance of this policy. If you do not agree to this policy, please do not use our Site. Your continued use of the Site following the posting of changes to this policy will be deemed your acceptance of those changes.

Contacting us

If you have any questions about this Privacy Policy, the practices of this site, or your dealings with this site, please contact us at:

Pharande Spaces: https://pharandespaces.com/
Pharande Spaces,
"Tarangan", 98/2,
Pune - Nashik Highway,
Guruvihar, Bhosari,
Pune: 411039. India.
Ph.no. 02027230506
Email: [email protected]


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All documents and graphics are provided "as is". Pharande Spaces hereby Disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for any particular purpose, title and non-infringement. In no event shall Pharande Spaces be liable for any kind of damage resulting from any clause or reason, arising out of or in connection with the use or performance of information available from this website.