Buying a flat in Mumbai is a dream for many, but alongside the excitement comes the complexity of taxes, such as the Goods and Services Tax or GST. In 2025, GST rules on flat purchases continue to evolve, affecting how much buyers ultimately pay and how developers price their properties.
This comprehensive buyer guide explains all you need to know about GST on flat purchase in Mumbai for 2025. The applicable rates on different property types, implications for affordable vs. luxury homes with detailed GST impact analysis on Mumbai property buyers, and latest updates from tax authorities.
GST on Flat Purchase In Mumbai 2025
The Goods and Services Tax (GST) started back in July 2017. It made things easier 'cause it eliminated a bunch of taxes like VAT and service tax and replaced them with just one tax. GST made taxes simpler for real estate, but the rates depend on the kind of property and how far along it is in construction.
Under-construction residential flats - GST is charged until the builder gets the official approval to occupy or finish the building.
Ready to move flats - No GST here, but you still have to pay stamp duty and registration fees, as per Maharashtra rules.
Commercial properties - These have higher GST rates and different rules for input credits.
In Mumbai, they really stick to these rules. Builders must show the GST amount on all sales agreements and bills.
GST on Flat Purchase in Mumbai 2025
The Goods and Services Tax was implemented nationally in July 2017, replacing multiple complex taxes such as VAT, service, and entry taxes with a uniform tax system. GST simplified real estate taxation but introduced specific rates depending on property type and stage:
- Under-construction residential flats: GST applies until the Occupation Certificate (OC) or Completion Certificate (CC) is obtained.
- Ready-to-move flats: No GST, but stamp duty and registration charges apply as per Maharashtra regulations.
- Commercial properties: Subject to higher GST rates with different input credits.
In Mumbai, these rules are enforced strictly with builders required to display GST on sale agreements and bills.
Q1: Do I pay GST on a resale flat in Mumbai?
Nope. GST is only for the first sale of flats still being built. Resales just have stamp duty and registration fees.
Q2: What's the GST rate for a flat that's under construction?
If it's an affordable flat, it's 1%. For others, it's 5%. The GST is figured out based on the flat's total cost, but not including the land value.
Q3: Will GST make fancy flats more expensive?
It could. GST adds to the initial cost, especially with these new taxes on imported stuff. Builders might just sell apartments without all the fancy stuff inside to keep prices down.
Q4: Does GST apply to maintenance fees?
Yep, there is a 18% GST if the monthly maintenance is over ₹7,500.
Q5: Can I get a GST refund when I buy a flat?
Sorry, buyers don't get GST refunds. Only builders can claim them.
Q6: How does GST relate to stamp duty and registration fees?
GST and stamp duty are different taxes. Registration and stamp fees depend on Maharashtra rules and you have to pay them on any property deal.
Conclusion
So, buying a flat in Mumbai next year? The GST makes taxes easier, but it changes how much you pay, especially if you're eyeing a fancy, not-yet-built place. The good news is that affordable housing gets a break on rates, which helps folks buy homes. But middle-of-the-road and nicer flats have more GST tacked on. If you understand how these GST things work, what they do to the overall cost, and even the upkeep fees, you can budget better and know what you're getting into.
Savvy buyers should keep up with GST changes, like that possible luxury stuff tax, and consider whether they want a move-in-ready place or still being built to get the best deal. The point is, knowing about GST helps you buy with your eyes open in Mumbai's crazy housing market, and hopefully land your dream home without any shocking surprises.