Buying a Flat This Diwali in Gujarat? 5% or 1% GST, No GST on Ready Flats, 4.9% Stamp Duty, 1% TDS and RERA Checks

Buying a flat in Gujarat this Diwali costs 5% GST if it is under construction, 1% if it is affordable housing, and nothing once it is complete.

Nirav and Pooja are booking a 2BHK in Rajkot on Dhanteras for Rs 62 lakh. The builder's sheet shows the price, GST, parking and maintenance deposit, and the bank has sanctioned the loan. What nobody has told them is that they must deduct 1% TDS from every payment to the builder, that registering the flat in Pooja's name alone saves the registration fee, and that the GST would be nil if they waited for the completion certificate.

Navratri to Diwali is the busiest home-buying season in Gujarat, and the taxes on a flat add 10% or more to the price. Here is what applies in 2026, and the checks to make before you pay the booking amount.

In short: An under-construction flat carries 5% GST on the agreement value, or 1% if it is affordable housing, meaning carpet area up to 90 square metres and value up to Rs 45 lakh anywhere in Gujarat. There is no GST on a flat sold after the completion certificate. Stamp duty is 4.9% of the price or the jantri value, whichever is higher, and the registration fee of 1% is waived when the flat is registered only in the names of women. If the price or the jantri value is Rs 50 lakh or more, you deduct 1% TDS from each payment and deposit it with Form 141 using your PAN. Check that the project is registered with GujRERA, pay through the bank, and do not pay more than 10% before a registered agreement.

Our team handles TDS filings, loan documents and tax planning for home buyers, and GST and RERA compliance for builders. The details are at the end of this guide.

GST on a flat

Under construction, regular housing: 5% of the agreement value, without input tax credit for the builder.
Affordable housing: 1%, if the carpet area is up to 90 square metres and the value up to Rs 45 lakh. Gujarat's cities are outside the metro list, so the 90 square metre limit applies throughout the State.
Ready to move: no GST on a flat sold after the completion certificate is issued, or after its first occupation, whichever is earlier.
Extra charges: parking and preferential location charges sold with the flat usually follow the flat's rate, while advance maintenance and club charges are often billed separately at 18%. Ask for the break-up in writing.
No credit for you: a home buyer cannot claim the GST back, so it is part of your cost.

Stamp duty and registration in Gujarat

Stamp duty: 4.9% of the price or the jantri value, whichever is higher.
Registration fee: 1%, waived when the property is registered only in the names of women.
Keep the receipts: stamp duty, registration and brokerage add to your cost when you sell the flat later.

The 1% TDS you must deduct

When: if the price or the stamp duty value is Rs 50 lakh or more, counting all buyers and sellers together.
How much: 1% of each payment, including payments to the builder by instalment. If the stamp duty value is higher than the price, TDS is worked out on that value.
What counts: the price includes parking, club membership, maintenance and similar charges connected with the flat.
How to pay: online with Form 141 using your PAN, within 30 days from the end of the month of payment. No TAN is needed. Then download the TDS certificate for the builder.
If you miss it: interest, late fees and a notice follow, often years later. Our guide on TDS mistakes when buying property shows how they surface.

Income tax points for the buyer

Buying below jantri: if the jantri value is higher than the price by more than 10% of the price, the difference is taxed as your income. If part of the price was paid through the bank by the date of the agreement, the jantri value on that date is used.
Home loan: interest and principal benefits depend on whether you use the old or new regime, and whether the flat is self-occupied or let out. See our guide to home loan tax benefits.
Pay through the bank: a builder cannot accept Rs 20,000 or more in cash as an advance for a property, and the penalty equals the amount. See cash transaction limits.

RERA checks before you pay

Registration: the project must be registered with GujRERA. Check the registration number, approved plans and quarterly progress on the GujRERA portal.
The 10% rule: the builder cannot take more than 10% of the price before a written agreement for sale is registered.
Carpet area: the price must be stated on carpet area as defined under RERA, not super built-up area.
Payment plan: link instalments to construction stages, not to dates alone.
Delay: if possession is delayed, RERA gives you interest for the delay or a refund with interest. Our guides to RERA in Gujarat and RERA rules for homebuyers explain the process.

Back to Nirav and Pooja. On Rs 62 lakh, GST at 5% adds Rs 3.1 lakh while the flat is under construction, and stamp duty at 4.9% adds about Rs 3 lakh. Registering the flat only in Pooja's name saves the Rs 62,000 registration fee, though the loan and ownership decisions should be made together with that in mind. They deduct 1% TDS from every instalment, Rs 62,000 in all, and deposit it with Form 141 each month. The project's GujRERA registration is checked first, and the booking amount stays within 10% until the agreement is registered.

How we help

Check the builder's cost sheet for GST, stamp duty and other charges
Deposit 1% TDS with Form 141 and issue the certificates
Income and loan documents, and the old or new regime decision for a home loan
Advice on whose name the flat should be in, and the tax effects
For builders, GST on real estate, RERA account certificates and TDS reconciliation
Capital gains planning when you sell an older house to buy the new one

Gadhia Associate has been in practice since 2007 and has handled work for over 7,000 clients, with a 5.0 Google rating from more than 100 reviews. Home buyers and builders from Junagadh, Rajkot, Jamnagar, Ahmedabad and across Gujarat come to our Junagadh office, where same-day appointments are available. TDS and tax work for buyers elsewhere is handled online. Selling an older house first? See our guide to saving capital gains tax.

Booking a flat this Diwali? Get the cost sheet and TDS checked before you pay. Call or WhatsApp +91 82005 28355, or message us on WhatsApp. The first consultation is free.

Frequently asked questions

What is the GST on an under-construction flat in Gujarat?

5% of the agreement value, or 1% for affordable housing with carpet area up to 90 square metres and value up to Rs 45 lakh.

Is GST payable on a ready-to-move flat?

No, if it is sold after the completion certificate is issued or after first occupation, whichever is earlier.

What is the stamp duty on a flat in Gujarat?

4.9% of the price or the jantri value, whichever is higher, plus a 1% registration fee that is waived for registration only in women's names.

Do I have to deduct TDS when buying a flat from a builder?

Yes, 1% of each payment if the price or the stamp duty value is Rs 50 lakh or more, deposited with Form 141 using your PAN.

Can a builder take a booking amount before the agreement?

Not more than 10% of the price before a written agreement for sale is registered.

Can I claim the GST paid on my flat?

No. A home buyer cannot take credit of the GST, so it is part of the cost of the flat.

Position as of 16 October 2026. Rates and limits are as currently notified; stamp duty and jantri values are set by the Gujarat government and can change. Check the agreement and cost sheet for your own flat, and take advice on your own facts.