GST services for builders.
Real-estate developers navigate project-wise GST rates, reverse charge on inputs, and strict no-ITC conditions.
About GST for builders
Real estate has its own GST regime. Affordable housing is taxed at 1% and other under-construction residential at 5%, both without input tax credit. Commercial projects and works contracts run at higher rates with credit. Completed properties with a completion certificate are outside GST.
Developers also face reverse charge obligations on a minimum proportion of inputs and on services like development rights. Project-wise accounting and the RCM math are where most disputes arise.
GST at a glance
- Affordable housing: 1% (no ITC)
- Other residential: 5% (no ITC)
- Completed property: outside GST
- RCM on a share of inputs
GST requirements for builders
- GST registration for the developer entity
- Project-wise classification and rate application
- Reverse-charge compliance on inputs / development rights
- Tax invoices and demand letters with correct GST
- GSTR-1, GSTR-3B and annual return
- Tracking of the 80% input-procurement condition
Our GST services for builders
Common GST challenges
How we get you compliant
Consultation
A free call to understand your business and obligations.
Documents
We collect KYC and business proofs, fully online.
Registration
We obtain or update your GSTIN with the department.
Return filing
Monthly or quarterly returns prepared and filed.
Compliance
Ongoing tracking so you never miss a date.
Documents typically required
GST rates for builders
| Supply / scenario | GST |
|---|---|
| Affordable housing | 1% (no ITC) |
| Other residential (under-construction) | 5% (no ITC) |
| Commercial (under-construction) | 12% (with ITC) |
| Works contract | 18% |
| Completed property (with OC) | outside GST |
Indicative rates, GST law and notifications change over time. Confirm your exact rate with an Expert before invoicing.
Builders GST questions
What GST rate applies to residential projects?
Affordable housing is taxed at 1% and other under-construction residential units at 5%, both without input tax credit. Commercial under-construction projects are typically 12% with credit.
Is GST payable on a ready-to-move flat?
No. A property sold after receiving its completion certificate (or after first occupation) is outside the scope of GST, there is no GST on completed property.
What is reverse charge for builders?
Developers must procure a minimum share of inputs from registered suppliers; shortfalls attract GST under reverse charge. RCM also applies to development rights in many JDA structures.
Can developers claim input tax credit?
Not under the 1%/5% residential rates, these are no-ITC schemes. Commercial projects at 12% allow credit. We track which regime each project falls under.
How is GST handled in a joint development agreement?
JDAs involve GST on transfer of development rights and on construction service, with specific timing and reverse-charge rules. These need careful, project-specific structuring.
Do I register per project or per entity?
Registration is at the entity (and state) level, but accounting and rate application are done project-wise. We set up books that keep projects cleanly separated.
Build with GST certainty.
We manage project-wise rates, RCM and returns so your real-estate compliance never holds up a launch.