What Is GST on Property Purchase? Everything Homebuyers Need to Know
Buying a home involves more than just paying the property price. Along with the cost of the house, buyers need to understand different taxes and charges involved in the purchase process. One of the major taxes that affects real estate transactions in India is GST (Goods and Services Tax). Understanding GST in Real Estate GST, or Goods and Services Tax, is an indirect tax introduced to replace multiple earlier taxes such as service tax and VAT. In the real estate sector, GST is mainly applicable when purchasing properties directly from builders during the construction stage. The tax is collected by the builder and paid to the government as per applicable rules. When Is GST Charged on Property Purchase? GST is generally applicable when a buyer purchases an under-construction property . Examples include: Flats that are still being built Apartments where construction work is ongoing Residential projects without a completion certificate In these cases, GST becomes part of the overall proper...