The introduction of GST transformed the Indian real estate sector by simplifying taxes, improving transparency, and reducing loopholes. In 2025, GST continues to play a major role in property buying decisions, especially for homebuyers who are looking for options like 3 BHK Flats in Zirakpur or luxury properties in premium areas such as Homeland Heights. Understanding GST rates, exemptions, and how they affect the overall property cost is crucial for making informed decisions. If you are planning to invest in property and want clarity on taxes, it’s always wise to consult the best real estate consultant who can guide you through every detail.
GST Rates on Real Estate in 2025
GST applies differently depending on the type of property. Here are the updated GST implications:
1. GST on Under-Construction Residential Property
Under-construction properties attract GST because they are considered a supply of services. The rates currently applicable in 2025 are:
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1% GST for affordable housing projects
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5% GST for non-affordable housing projects
Affordable housing includes homes up to ₹45 lakh with a carpet area up to 60 sq. m. in metros and 90 sq. m. in non-metros.
Most mid-range and luxury projects—such as those offering 3 BHK Flats in Zirakpur or premium units in Homeland Heights—usually fall under the 5% GST non-affordable category.
2. GST on Ready-to-Move (RTM) Flats
No GST is applicable on ready-to-move-in properties, provided:
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The building has received a Completion Certificate (CC) or
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An Occupation Certificate (OC) from the authorities.
This exemption makes ready-to-move flats more attractive, especially in areas where buyers want immediate possession and clarity in pricing.
3. GST on Commercial Properties
Under-construction commercial spaces attract 12% GST with input tax credit (ITC). Ready-to-move commercial units do not attract GST.
GST Exemptions You Should Know in 2025
Understanding exemptions can significantly reduce the cost of your property purchase. Key exemptions include:
No GST on Land Transactions
Pure land purchases are fully exempt from GST. This includes parcels of land, plots, and plotted developments.
No GST on Completed Properties
As mentioned earlier, fully completed and certified properties are not taxed under GST, reducing the overall burden for buyers.
No GST on Resale Properties
If you are buying a second-hand or previously owned property, GST does not apply.
GST on Home Loan Processing Fees
While not directly related to property, financial services attract 18% GST. This includes loan processing fees and legal verification charges.
Benefits of GST for Homebuyers in 2025
GST has brought several advantages that simplify and streamline property purchases:
1. More Transparency & Reduced Fraud
GST eliminated multiple taxes like VAT, service tax, and entry taxes. This unified tax structure has improved transparency and reduced hidden charges by builders.
2. Easier to Compare Properties
With a straightforward 1% or 5% GST rate, it’s now easier for buyers to compare the actual cost of different projects in areas like Zirakpur or Mohali.
3. Encourages Timely Project Delivery
The GST system tracks transactions digitally, pushing builders to maintain transparency and timely delivery. Projects like Homeland Heights or reputed developments in Zirakpur follow this compliance strictly.
4. Simplified Taxation for Developers
Input tax adjustments (available in certain categories) help maintain uniform pricing and reduce cost discrepancies.
How GST Impacts Prices of 3 BHK Flats in Zirakpur?
Zirakpur has emerged as a prime destination for modern homebuyers due to connectivity, infrastructure growth, and lifestyle amenities. But GST affects property prices depending on construction status:
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Under-construction 3 BHK flats: Buyers must pay 5% GST, which increases the upfront cost.
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Ready-to-move 3 BHK flats: No GST applies, making these units more cost-effective.
This is why many buyers choose ready-to-move options via the best real estate consultant, who can compare all available inventory and secure the best deal.
Why You Need the Best Real Estate Consultant?
Understanding GST is just one part of buying property. A knowledgeable real estate consultant can help you:
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Navigate GST rules
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Understand price breakdowns
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Compare under-construction vs RTM options
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Find genuine projects with transparent documentation
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Secure the best price and best-location units
Whether you’re exploring 3 BHK Flats in Zirakpur or luxury options like Homeland Heights, expert guidance ensures you avoid costly mistakes.
Conclusion
GST in 2025 remains a crucial factor in property decisions. By understanding GST rates, exemptions, and benefits, buyers can make more informed financial decisions. Whether you are planning to invest in a premium property or looking for reliable 3 BHK Flats in Zirakpur, always consult the best real estate consultant to ensure transparency, accuracy, and a hassle-free buying experience.