GST on an under-construction flat vs a ready-to-move flat in Hyderabad: 5%, 1% and when it is zero
Short answer: if you buy a flat in Hyderabad after the completion certificate is issued, there is no GST on the sale (PIB). If the completion certificate is not yet issued, GST applies, at an effective 5% without input tax credit for most flats and 1% for an "affordable residential apartment" (TRU FAQ on real estate, Q1). The builder collects it; you should see it on each instalment's invoice.
Under construction vs ready to move: the GST difference
| Your flat | GST on what you pay the builder |
|---|---|
| Ready-to-move, sold after the completion certificate is issued | No GST. PIB: "there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority." |
| "Ready-to-move" but the completion certificate is not yet issued | GST applies. PIB: GST "is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale." |
| Under construction, not an "affordable" flat | Effective 5% without input tax credit on total consideration (FAQ Q1, rate from 01-04-2019) |
| Under construction, "affordable residential apartment" | Effective 1% without input tax credit on total consideration (FAQ Q1). Hyderabad is listed as a metropolitan city, so the limit is carpet area up to 60 square metres and a gross amount charged of not more than ₹45 lakh (FAQ Q2). |
Is my Hyderabad flat "affordable" for GST?
FAQ Q2 defines it by carpet area and the gross amount the builder charges. In Hyderabad (a metropolitan city in the FAQ's list) that means up to 60 sq m carpet area (about 646 sq ft) and not more than ₹45 lakh. Both must be met. A flat on the edge of Hyderabad may fall outside the city's "geographical limits prescribed by Government"; which limits apply to a given locality is to verify with the builder's CA or the GST department.
Five checks before you sign or pay the next instalment
- Ask whether the completion certificate (or occupancy certificate) has been issued, and get a copy. That date decides whether GST applies at all. See our occupancy certificate check.
- Ask the builder, in writing, which GST rate is in the price and whether the quoted price is inclusive or exclusive of GST.
- Check the carpet area and total price against the "affordable" limits above. Carpet area is the RERA figure, not super built-up: see our carpet area guide and the carpet area loading calculator.
- Ask for a tax invoice for each instalment showing the builder's GSTIN and the GST charged. You can check a GSTIN on the official GST portal (search taxpayer); the exact steps are to verify on the portal.
- Keep GST separate from stamp duty. Stamp duty and registration fee are state charges paid when the deed is registered; see our stamp duty guide.
The buyer can't choose the rate. FAQ Q20: "The buyer cannot exercise option to pay tax at the new or old rates. It is the builder, who has to exercise the option". In projects that were already ongoing on 31 March 2019, a builder could keep the old effective rates of 8% / 12% with input tax credit, and the FAQ says it is "expected to pass the benefit of the credit" to buyers (Q1, Q17).
To verify: this FAQ is dated 7 May 2019. GST rates can be changed by later notifications, so check the current rate notification on the CBIC GST site or with a chartered accountant before relying on any number here. We have not stated anything about input tax credit for buyers, GST on parking, club or maintenance charges, or GST on resale between two individuals, because the pages we read don't cover those lines for a flat buyer.
Related guides
- Verify the RERA project registration
- TDS on property purchase
- Undivided share of land (UDS) check
- Flat possession handover checklist
- RERA complaint against a builder
Buying in Andhra Pradesh? See the Andhra Pradesh guide.
Not tax or legal advice. This page summarises a 2019 TRU FAQ and a PIB release read on 23 Oct 2026. GST notifications change and the gazette notifications prevail. Confirm the rate on your flat with a chartered accountant before you sign or pay.
A free sample from our Hyderabad property do-it-yourself pack: which papers to ask the builder for, which official portals to check, and in what order.
Get it free (instant download)FAQ
Is there GST on a ready-to-move flat in Hyderabad?
Not if the sale happens after the completion certificate is issued by the competent authority, per PIB. If the completion certificate is not yet issued at the time of sale, GST applies.
What is the GST rate on an under-construction flat in Hyderabad?
Per the TRU FAQ on real estate (7 May 2019), an effective 5% without input tax credit for flats other than affordable ones, and 1% for affordable residential apartments, on total consideration after deduction of value of land. Check the current notification before relying on it.
What counts as an affordable flat in Hyderabad for GST?
Carpet area up to 60 square metres and a gross amount charged of not more than Rs 45 lakh, since Hyderabad is in the FAQ's list of metropolitan cities.
Can I ask the builder to charge the lower GST rate?
No. The FAQ says the buyer cannot exercise the option; the builder chooses, within the rules.
Official sources
- TRU: FAQs on real estate, F. No. 354/32/2019-TRU, 7 May 2019 (GST Council PDF)
- PIB: Effective tax rate on complex, building, flat etc. (PRID 1555274)
- CBIC GST portal (current notifications)
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.