GST on a flat in Hyderabad: 5%, 1% for affordable homes, and no GST after the completion certificate
Quick rate table
| Flat | GST (effective) |
|---|---|
| Under construction, affordable (≤60 sq m carpet in Hyderabad and ≤₹45 lakh) | 1% |
| Under construction, other residential | 5% |
| Ready to move, completion certificate issued before sale | No GST |
| Resale by an individual owner | No GST |
The effective rates already include the deemed one-third deduction for land value, so the rate applies to the full agreement value.
Worked example
A non-affordable 2BHK at ₹80 lakh, booked under construction: GST = 5% × ₹80 lakh = ₹4 lakh, paid to the builder in step with the payment schedule. Stamp duty and registration are paid separately at registration (see our Telangana stamp duty guide).
Other charges on the bill
- Maintenance to a residents' welfare association: exempt up to ₹7,500 per member per month; above that, GST can apply depending on the association's turnover.
- Car parking, club or preferential location charges bundled into the flat price usually follow the flat's rate. Ask the builder to show the GST treatment of each line in writing.
Common mistakes
- Paying 12% or 18% on a residential flat because of an old quotation. Ask which rate scheme the project follows.
- Not checking the builder's GSTIN. Use "Search Taxpayer" on gst.gov.in and check the receipts show the GSTIN.
- Assuming "OC applied for" means no GST. The exemption needs the completion certificate (or first occupation) before the sale.
- Ignoring the TG-RERA registration. Check the project on TG-RERA first (how to check).
Checklist
- Carpet area and price checked against the affordable test
- GST rate written in the agreement
- Builder GSTIN verified on gst.gov.in
- Completion certificate status known
- TG-RERA project number checked
Frequently asked questions
What is the GST on an under-construction flat in Hyderabad?
5% without input tax credit for a normal residential flat, or 1% if it is an affordable flat (up to 60 sq m carpet area in Hyderabad and up to ₹45 lakh).
Is there GST on a ready-to-move flat?
No, if the flat is sold after the completion certificate is issued or after its first occupation, whichever is earlier.
Is there GST on resale flats?
No. A resale by an individual owner is not a taxable supply under GST; stamp duty and registration still apply.
Is Hyderabad a metropolitan city for the affordable housing rule?
Yes. Hyderabad is one of the listed metropolitan cities, so the carpet-area limit is 60 square metres.
Official sources
Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 20 Oct 2026.
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