Quick Answer
- What is the GST rate on commercial property in India? Under-construction commercial property attracts 12% GST on the agreement value (after land deduction); ready-to-move commercial with Occupancy Certificate is GST-exempt.
- Can buyers claim Input Tax Credit (ITC) on this GST? Yes — if you are a GST-registered business buying for business use, you can claim ITC on the 12% paid, significantly reducing your effective cost.
- Is stamp duty included in GST? No — stamp duty and registration charges are levied separately by the state government and are not offset by GST ITC.
- Prices: Business Suite from ₹55L · Hotel Suite from ₹69L
GST on commercial property is one of the most searched — and most confusing — questions for buyers. The rate is different depending on whether the property is under construction or ready to move. There is an ITC angle most buyers miss. And stamp duty is entirely separate. This guide gives you the complete, accurate picture.
Short answer: Under-construction commercial property in India attracts 12% GST on the agreement value (after land deduction). Ready-to-move commercial (with Occupancy Certificate) is GST-exempt. If you are a GST-registered business, you can claim Input Tax Credit on the 12% — reducing your effective cost significantly.
GST Rate on Commercial Property in India
As of 2026, the GST rates on real estate in India are as follows:
| Property Type | GST Rate | ITC Available? |
|---|---|---|
| Under-construction commercial property | 12% (on taxable value) | Yes — for GST-registered buyers using for business |
| Ready-to-move commercial (with OC) | 0% — Exempt | N/A |
| Under-construction residential (affordable) | 1% | No (blocked for residential) |
| Under-construction residential (other) | 5% | No (blocked for residential) |
The key distinction for commercial property buyers: if the project does not have an Occupancy Certificate at the time you sign the agreement, you pay 12% GST. This is standard across India and is not developer-specific.
How GST Is Actually Calculated
GST on real estate is not charged on the full agreement value. The GST Council provides a 1/3rd deduction for land value — so the taxable value is 2/3rd of the total consideration. Then 12% GST applies on that taxable portion.
Worked example:
- Agreement value: ₹60 lakh
- Taxable value (after 1/3 land deduction): ₹60L × (2/3) = ₹40 lakh
- GST at 12%: ₹40L × 12% = ₹4.8 lakh
- Total outgo including GST: ₹60L + ₹4.8L = ₹64.8 lakh
- If ITC claimable: effective cost = ₹60L (GST is recovered via credit)
In practice, the builder's agreement will specify the GST component. Ask for the GST breakdown in writing before signing anything. At Omaxe Kaushambi, the full cost breakdown — including GST — is shared in the price sheet sent by Saurabh on WhatsApp before any commitment.
When Is GST Paid?
GST is not paid as a lump sum on the agreement date. It follows the construction-linked payment plan:
| Payment Stage | Principal Amount | GST (12% on 2/3rds) |
|---|---|---|
| Booking / EOI amount | Booking amount | 8% of booking amount |
| Each construction milestone | Per-milestone amount | 8% of each installment |
| Possession payment | Balance due | 8% of balance |
Note: "8% of installment" = 12% × (2/3). The effective GST on each payment works out to approximately 8% of the actual payment made — a quick mental shortcut buyers use.
Input Tax Credit (ITC) — The Biggest Factor Most Buyers Miss
Here is what distinguishes commercial property buyers from residential buyers: if you are GST-registered and you buy the property for use in your taxable business activity, you can claim the entire GST paid as Input Tax Credit.
This means the 12% GST effectively costs you nothing — it is recovered from your GST output tax liability. The property becomes GST-cost-neutral for your business.
- GST-registered companies buying office space
- Chartered Accountants registered under GST
- Company Secretaries with GST registration
- Doctors with GST-liable practice income
- Consultants, lawyers, architects with GST registration
- Any business using the property for taxable supply
- Individuals buying for personal use
- Buyers not registered under GST
- Businesses using property for exempt supplies only
- Hotel Suite buyers using for personal accommodation
For a CA, CS, or business buying a Business Suite at ISBT Kaushambi, ITC makes the GST component effectively zero from a cash flow standpoint — it reduces the GST you pay on your quarterly returns. Speak to your CA to confirm ITC eligibility for your specific case before proceeding.
Stamp Duty and Registration — Separate from GST
Stamp duty and registration charges are state government levies — completely separate from GST and not subject to it. They are paid at the time of registration (not during construction).
| Charge | Rate in UP (Ghaziabad) | When Paid |
|---|---|---|
| Stamp Duty | 7% of circle rate or agreement value (whichever is higher) | At time of registry |
| Registration Charges | ~1% of property value | At time of registry |
| GST | 12% on taxable value (2/3 of agreement value) | Progressive, with payment milestones |
No GST applies to stamp duty or registration. They are mutually exclusive tax categories.
Total Cost Breakdown: What to Budget For
When buying an under-construction commercial property in Ghaziabad, budget for:
- Agreement value — the BSP × unit size + any additional charges
- GST: ~8% of each payment (= 12% on 2/3 of consideration) — paid progressively; claimable as ITC if GST-registered
- Stamp duty: 7% of registration value — paid at registry
- Registration: ~1% — paid at registry
- Maintenance deposit — one-time, project-specific; disclosed in price sheet
Practical note: At Omaxe Kaushambi, the complete cost breakdown — including BSP, GST, maintenance deposit, and stamp/registration estimates — is shared in writing via the price sheet sent by Saurabh on WhatsApp. There is no obligation to receive this. Ask for it before making any decision.
GST at Omaxe Kaushambi — What to Expect
Omaxe Kaushambi (BeTogether Courtyard) is an under-construction project. 12% GST applies on the agreement value (after standard land deduction) for all units booked before Occupancy Certificate is issued.
For Business Suite buyers who are GST-registered (CAs, CS professionals, businesses, consultants), ITC on this GST is claimable — meaning the real tax cost is just stamp duty + registration at registry time.
The price sheet shared by Saurabh includes a clear cost breakdown with all charges disclosed upfront — no surprises at the time of registration.
Get the Full Price Sheet With Cost Breakdown
Unit price, GST, maintenance deposit, and stamp/registration estimates — shared on WhatsApp within minutes.
WhatsApp Saurabh — Get Price Sheet 📞 +91 99113 32635FAQs — GST on Commercial Property
Summary — What to Remember
| Item | Rate / Details | When Paid |
|---|---|---|
| GST (under-construction commercial) | 12% on 2/3 of agreement value (~8% per installment) | Progressive with payment milestones |
| GST (ready-to-move commercial) | 0% — Exempt | N/A |
| Input Tax Credit on GST | Fully claimable for GST-registered business buyers | Via GST returns |
| Stamp Duty (UP / Ghaziabad) | 7% of registration value | At time of registry |
| Registration Charges (UP) | ~1% of property value | At time of registry |
| GST on stamp duty / registration | 0% — Not applicable | N/A |
For a GST-registered professional or business buying a Business Suite at Omaxe Kaushambi: the total additional tax cost at registry is approximately 7–8% (stamp + registration) — the GST is recovered via ITC. For individuals not GST-registered: total additional outgo is approximately 15–16% (GST ~8% effective + stamp + registration).
This is an informational guide. Tax treatment depends on individual circumstances and applicable law at the time of transaction. Verify with your CA before any purchase decision. Omaxe provides official documentation at the time of booking that discloses all applicable charges.