GST on Flat Purchase: Rates & Rules 2026
Quick Answer: GST at 5% (without ITC) applies to under-construction properties that are not classified as affordable housing. Ready-to-move-in properties with an Occupancy Certificate (OC) are exempt from GST. For a Price On Requestore flat, GST adds approximately ₹14.8 Lakh.
Current GST Rates on Property (2026)
| Property Type | GST Rate | ITC Available? |
|---|---|---|
| Under-Construction (Affordable Housing) | 1% | No |
| Under-Construction (Non-Affordable / Luxury) | 5% | No |
| Ready-to-Move (with OC/CC) | 0% | N/A |
| Commercial Property | 12% | Yes |
How GST Applies to Fab Luxe Residences
Fab Luxe Residences (developed by Forbes Global Properties) is an under-construction luxury project, so the 5% GST rate applies. This is calculated on the agreement value minus the value of land (typically one-third of the total amount is attributed to land and excluded from GST calculation).
In practice, for simplicity, the effective GST is charged on the total agreement value at an effective rate, which works out to approximately 5% of the BSP amount. For the 3 BHK Type A at Price On Requestore, expect a GST outflow of approximately ₹14.8 Lakh.
Key Points to Remember
- GST is applicable only on under-construction properties and goes to zero once the project receives its OC
- No Input Tax Credit (ITC) benefit is available to buyers under the current 5% rate
- GST is paid to the developer as part of your payment installments, and the developer remits it to the government
- You cannot claim GST as a deduction under Income Tax — it is part of your cost of acquisition
- Despite the GST burden, under-construction property with pre-launch pricing is often cheaper than GST-free ready-to-move units
For complete cost calculations including GST, see our price list and stamp duty guide.