Guides · During buying
During buying · 3 min readGST on Under-Construction Flats
Reviewed against MahaRERA rules · Informational, not legal advice
The short version: GST applies only while a home is under construction — never on a ready one. Knowing the rate, and when it's zero, can be a large line on your cost sheet.
The rates
Under-construction (non-affordable housing): 5%, with no input-tax credit passed to you.
Affordable housing: 1%, subject to the price and area limits that define “affordable”.
Ready / OC-received: no GST at all — you're buying a completed property, not a construction service.
Why it matters
This is a real reason a ready flat can cost less than it first appears next to an under-construction one — and why the project's stage belongs in your all-in cost, not just the sticker price.
What to watch for
- GST charged on a ready, OC-received flat.
- GST applied on stamp duty or registration — it isn't.
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This guide is general information to help you ask better questions — it is not legal advice, and it doesn't replace your own advocate or the official MahaRERA portal. Rules, rates and builder practices vary; always verify against the current MahaRERA record and your project's documents before acting.