GST on Flats in Kolkata: 1% on Affordable Housing, 5% on Other Under-Construction Flats, None on Ready-to-Move
Buying an under-construction flat in Kolkata attracts GST of 1% of the agreement value for an affordable flat and 5% for other residential flats, both without input tax credit to the builder. An affordable flat in Kolkata, as a metropolitan city, is one with carpet area up to 60 square metres and value up to ₹45 lakh. A ready-to-move flat sold after the completion certificate is issued carries no GST at all. Stamp duty is charged separately at registration, and the buyer must deduct 1% TDS if the price is ₹50 lakh or more.
GST on residential flats
| Flat | GST (effective) |
|---|---|
| Affordable: carpet up to 60 sq m in Kolkata and value up to ₹45 lakh, under construction | 1% |
| Other residential flats, under construction | 5% |
| Ready-to-move, sold after the completion certificate | No GST |
| Resale flat bought from an individual owner | No GST |
These effective rates already allow a one-third deduction for the value of land. Builders cannot claim input tax credit on residential projects under these rates.
Extra charges
- Car parking, club membership, preferential location charges: if charged with the flat as part of one agreement, they generally take the flat’s rate. If billed separately as an independent service, they may be taxed at 18%.
- Maintenance deposit and corpus: check the agreement; maintenance services by an association are taxable only above thresholds.
- Electricity and transformer charges: usually part of the flat price.
Commercial units
Shops and offices in a residential project, or commercial projects, are taxed differently from homes. Check the rate in the agreement before booking.
Stamp duty and registration
GST is paid to the builder during construction; stamp duty and registration fee are paid at registration on the market value. See our guide to stamp duty in Kolkata.
TDS on purchase
If the flat price is ₹50 lakh or more, deduct 1% TDS from each payment to the builder (or seller) and deposit it with Form 26QB. GST is not part of the value for TDS when shown separately, under CBDT’s clarification. If you buy from an NRI seller, different TDS rules apply.
Check the project on WBRERA
Before booking, verify the project’s registration, approvals and progress on the WBRERA portal. See our guide to WBRERA registration.
FAQs
What is the GST on an under-construction flat in Kolkata?
5% for most flats, or 1% for affordable flats with carpet up to 60 sq m and value up to ₹45 lakh.
Is GST charged on a ready-to-move flat?
No, if it is sold after the completion certificate is issued.
Can I get a refund of GST paid on a flat?
No, GST on flats is a cost to the buyer; the builder cannot pass on input tax credit.
TAXAJ helps homebuyers in Kolkata with agreement review, TDS on property, stamp duty and home loan tax benefits. Talk to our Kolkata team.
Last updated 11 November 2026. Sources: Notification 11/2017-Central Tax (Rate) as amended by Notification 3/2019 (real estate rates from 1 April 2019); Income-tax law on TDS on transfer of immovable property and the CBDT circular on GST exclusion. General information only.
