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Planning to buy an under-construction flat in Thane, Mumbai, Navi Mumbai, or Pune? If yes, there’s one crucial factor you must not overlook: GST (Goods and Services Tax). It directly impacts the total cost of your property and can be a game-changer in your buying decision.
At Urvik Consulting, we often get queries like, “Do I have to pay GST on my under-construction apartment in Maharashtra?” or “How much GST applies in 2025?” Let’s break down everything you need to know.
What is GST on Under-Construction Property?
When you purchase a property that is still being built, the government treats it as a supply of services—hence, GST applies. However, once a project receives its Occupancy Certificate (OC), it becomes a ready-to-move-in property, and GST is no longer applicable.
GST Rates in 2025 (For Maharashtra Regions)
As per the current GST rules (unchanged till July 2025), here are the applicable GST rates for residential properties:
| Property Type | GST Rate | Input Tax Credit (ITC) |
|---|---|---|
| Affordable Housing | 1% | No |
| Non-Affordable Housing | 5% | No |
| Under-Construction Commercial Property | 12% | Yes |
What Qualifies as Affordable Housing?
- Carpet area: Up to 60 sq.m. (in Mumbai, Navi Mumbai, Thane)
- Property value: Less than ₹45 lakhs
If your apartment in areas like Dombivli, Kharghar, or Wagholi meets these parameters, you may qualify for the 1% GST slab.
When is GST Applicable in Maharashtra?
GST is levied if:
- The builder or developer is registered under GST.
- You are buying the property before the OC is issued.
- You make any payment (partial or full) during the construction stage.
GST NOT Applicable When:
- The property is ready-to-move-in with Occupancy Certificate (OC).
- You’re buying a resale flat.
- You purchase land only without construction service bundled.
Impact on Cost for Buyers in Mumbai, Pune & Thane
Here’s how GST affects your budget:
- Non-affordable home @ ₹70 lakhs = 5% GST = ₹3.5 lakhs extra
- Affordable home @ ₹40 lakhs = 1% GST = ₹40,000 extra
Since Input Tax Credit (ITC) is not available for buyers under the new GST regime, developers often build this cost into the price, making it crucial to budget wisely.
How to Check GST While Buying a Flat
Before finalizing your deal with a developer in Pune, Mumbai, or Thane, make sure:
- GST is mentioned clearly in your Builder-Buyer Agreement.
- The builder has a valid GSTIN (GST Identification Number).
- The invoice shows the correct GST rate (1%, 5%, or 12%).
You can verify the project and builder credentials through MahaRERA (https://maharera.mahaonline.gov.in) for Maharashtra-specific projects.
Plot + Construction Combo Deals in Maharashtra
If you’re purchasing a plot with a construction package (common in Pune suburbs like Hinjewadi, or Navi Mumbai areas like Panvel), GST applies only on the construction portion. Make sure the builder provides a split agreement to avoid unnecessary tax on land value.
Under-Construction vs Ready-to-Move: GST Difference
| Factor | Under-Construction | Ready-to-Move |
|---|---|---|
| GST | Yes (1% / 5% / 12%) | No |
| OC Issued? | No | Yes |
| Budget Impact | Higher due to GST | Lower |
| Possession Time | Future | Immediate |
If you’re focused on immediate possession and lower tax burden, explore ready-to-move flats in Thane or Navi Mumbai, which are often GST-free.
Pro Tip from Urvik Consulting
If you are planning to invest in under-construction homes in Mumbai Metropolitan Region (MMR), ensure:
- The Occupancy Certificate status is checked.
- GST is not being wrongly charged on ready projects.
- You get transparent breakup of pricing components (base price, GST, registration, etc.)
Conclusion
Understanding GST on under-construction property in Maharashtra can help you save lakhs and make a smart investment in 2025. Whether you’re buying in Pune’s tech hubs, Navi Mumbai’s growing suburbs, or premium zones of Thane, always account for GST when planning your budget.
At Urvik Consulting, we offer end-to-end support in finding verified, RERA-approved projects across Maharashtra. From pre-launch pricing to documentation help, our real estate advisors ensure transparency and zero-stress transactions.
📞 Ready to buy your dream home?
Call us at +91 9999221552 or visit 🌐 www.urvikconsulting.com
FAQs
1. Is GST applicable on ready-to-move flats in Maharashtra?
No. If the OC is issued, GST is not applicable.
2. Can I get Input Tax Credit on GST paid?
No, residential buyers do not get ITC under the current scheme.
3. How do I avoid GST on my property purchase?
Opt for ready-to-move-in flats with a valid OC or consider direct land purchases.
4. Does GST apply to resale flats?
No, resale properties are exempt from GST.
5. Are GST rates likely to change in 2025?
There have been no changes yet in 2025, but keep an eye on GST Council updates.