GST on residential property in Noida: worked examples for under-construction, ready and resale homes

GST is 1 of the biggest line items on a Noida cost sheet, and it’s also 1 of the most misunderstood. Some buyers assume every flat carries GST. Others assume none do. The truth depends on 1 question: is the home still under construction when you pay for it?

This guide explains GST on residential property in Noida as it stands in 2026, with worked examples at real Noida price levels. It covers the rates, when GST applies and when it doesn’t, what happens with extra charges, maintenance and rent, and a few points about GST across the real estate sector that affect what you pay. For the concepts behind the numbers, see our guide to GST in real estate in India.

*This article is general information, not tax advice. Check your own cost sheet with the developer and a tax adviser.*

GST rate on flats in Noida at a glance

These rates have applied since April 2019, when the earlier 8% and 12% rates with input tax credit were replaced. The GST 2.0 reforms that took effect on 22 September 2025 left residential property rates unchanged, according to a 2026 explainer from HomeFirst. The official notifications and rate schedules are published on the CBIC GST portal.

What counts as affordable housing

The 1% rate applies only to homes that meet the affordable housing definition. For the Delhi NCR metro cities, which include Noida, a home qualifies if both conditions are met:

• Carpet area of up to 60 sq m, which is about 646 sq ft.
• Price of up to ₹45 lakh.

 Outside metro cities, the carpet area limit is 90 sq m, with the same ₹45 lakh price cap. Because Noida prices have risen well above ₹45 lakh in most sectors, very few new homes in Noida qualify. For most buyers, the relevant GST rate on flats in Noida is 5% on an under-construction home and zero on a completed home.

Why ready and resale homes don’t attract GST

GST is a tax on the supply of goods and services. When you buy an under-construction flat, the law treats part of what you’re paying for as a construction service, which is why GST applies. Once the building has its completion or occupancy certificate, the sale of the flat is treated as a sale of immovable property, which falls outside GST. The same applies to the sale of land.

That’s why a resale flat in a completed Noida society carries no GST, and why a ready flat bought from a developer after the completion certificate also carries none. Stamp duty and registration still apply, since they’re state levies separate from GST.

GST on a new house purchase: worked examples

Here’s what GST looks like at Noida price levels. ANAROCK’s Q1 2026 NCR report put the average quoted base price in Sector 150 at about ₹14,600 per sq ft, which we’ve used for a realistic range of prices.

Example 1: an under-construction 3 BHK

A 3 BHK of about 1,700 sq ft at ₹14,600 per sq ft costs about ₹2.48 crore in base price. At an effective 5%, GST comes to about ₹12.4 lakh, paid in stages with each instalment before completion.

Example 2: the same home, bought ready

If the same home is bought after the completion certificate, there’s no GST. On a ₹2.48 crore price, that’s a saving of about ₹12.4 lakh. The trade-off is that ready homes in demand often carry a higher price, so compare the total cost as well as the tax.

Example 3: a resale flat

A resale 2 BHK in a completed Noida society, bought for ₹1.2 crore, carries no GST at all. You pay stamp duty, registration, the Noida Authority transfer charge on resale and brokerage if you use an agent.

Example 4: an affordable home

A compact home with a carpet area of 55 sq m, priced at ₹42 lakh, meets both affordable housing conditions. GST at an effective 1% comes to ₹42,000. If the same home were priced at ₹46 lakh, it would cross the ₹45 lakh cap and GST would be 5%, or ₹2.3 lakh.

*Illustrations only. Your GST depends on the actual price, the charges included and the stage of construction.*

GST in Noida by budget: 3 buyer profiles

Numbers are easier to follow when they’re attached to real situations. Here are 3 typical Noida buyers and how GST affects each.

A first-time buyer with a ₹90 lakh budget

Riya and her husband want a 2 BHK close to the Aqua Line. At ₹90 lakh, no new home in their shortlist qualifies as affordable housing, because the price is above ₹45 lakh. An under-construction 2 BHK at ₹85 lakh would carry about ₹4.25 lakh in GST. A resale 2 BHK in a completed society at the same price would carry none, though they’d pay the Noida Authority transfer charge on resale. For them, the GST saving makes resale worth a serious look, provided the society is well run.

A family upgrading to a ₹2.5 crore 3 BHK

The Sharmas are selling a smaller flat to buy a large 3 BHK on the Expressway. An under-construction home at ₹2.5 crore would carry about ₹12.5 lakh in GST, spread over the payment schedule. A ready home at the same price would carry none. If the ready home costs ₹2.6 crore, the total cost is still lower than the under-construction option once GST is added, and they avoid a wait. The decision turns on whether they can find the right ready home.

An investor buying a compact home

An investor looking at a small home for rental income finds a compact unit with a carpet area of 58 sq m, priced at ₹44 lakh. It meets both affordable housing conditions, so GST is 1%, or ₹44,000. The same unit priced at ₹46 lakh would attract 5%, or ₹2.3 lakh. At this end of the market, the ₹45 lakh cap is worth watching closely.

How to read the GST line on a cost sheet

A clear cost sheet shows GST separately for each charge. Here’s the kind of layout to ask for, with illustrative figures for an under-construction home.

*Illustrative only. How each charge is taxed depends on how the developer structures it.*

If a cost sheet shows 1 lump GST figure with no breakdown, ask for the detail. It’s the only way to compare 2 projects fairly.

What the agreement should say about GST

Under RERA, your agreement for sale sets out the price and the payment terms. Read the tax clauses carefully.

• Is the price inclusive or exclusive of GST? Most Noida cost sheets quote prices exclusive of GST, with GST added on each instalment.
• What happens if tax rates change? Agreements usually say that any change in government levies is passed on to the buyer. That can work for or against you.
• Is the carpet area stated? RERA requires it, and it’s the basis for comparing value.
• When will GST stop applying? Ask how the developer will treat payments made after the completion certificate.

 Keep a copy of the signed agreement and every GST invoice. You’ll need them for your records and, later, for calculating capital gains when you sell.

What happened when the rates changed in 2019

The current rates came in on 1 April 2019. Before that, under-construction homes attracted 12% GST, or 8% for affordable housing, and developers could claim input tax credit. The GST Council replaced those rates with 5% and 1% without input tax credit.

Projects already under construction at that point had a 1-time choice: stay on the old rates with input tax credit or move to the new rates. Buyers in older ongoing projects may therefore have paid GST under either structure. For homes booked in new projects since then, the 5% and 1% rates apply.

The change also came with rules requiring developers to pass on the benefit of lower taxes to buyers. For buyers today, the practical lesson is simple: check the GST rate on your invoice matches the rate that applies to your project.

GST for NRI buyers

NRIs buying in Noida pay GST at the same rates as resident buyers: an effective 5% on under-construction homes that aren’t affordable housing, 1% on affordable homes and nothing on completed or resale homes. Payments should come through normal banking channels, such as an NRE or NRO account, and GST is added to each instalment in the same way.

For NRIs who can’t visit often, a ready or resale home in a completed society avoids both GST and the need to track construction from abroad. That’s 1 reason many NRI buyers in Noida prefer completed homes.

When GST is charged on an under-construction home

GST on an under-construction home isn’t paid in 1 lump sum. It’s charged on each payment you make before the completion certificate is issued, whether that’s the booking amount or a construction-linked instalment.

If the completion certificate is issued before you’ve made your final payments, the payments made after that date generally don’t attract GST, since the home is then a completed property. Check the timing with the developer and keep receipts that show the GST on each instalment.

A payment plan that loads more of the price towards possession can therefore reduce the GST you pay, if the completion certificate arrives before those final payments. Ask the developer how GST is applied under each plan before you choose.

GST on other charges in the cost sheet

A Noida cost sheet usually lists more than the base price. How GST applies to the extras depends on how they’re charged.

• Parking, preferential location charges and similar items that form part of the price of the home before completion usually attract GST at the same rate as the home.
• Club membership and advance maintenance, if billed as separate services, can attract GST at 18%.
• Stamp duty and registration don’t attract GST.

Ask the developer for a cost sheet that shows GST line by line. It makes comparing projects much easier and avoids surprises at possession. Our breakdown of the total cost of buying a flat in Noida and Ghaziabad shows how the extras add up.

GST on property registration

There’s no GST on property registration. Stamp duty and the registration fee are charged by the state government under its own laws, entirely outside GST. In Noida, stamp duty is 7% for a male buyer, with a 1% concession for women on property worth up to ₹1 crore, and the registration fee is 1%.

Buyers sometimes see GST on a lawyer’s or agent’s invoice for registration-related services. That’s GST on the professional’s fee, which is a service. The registration itself carries no GST.

GST on immovable property: the wider picture

GST on immovable property depends on what’s being supplied. A few common cases:

These rules explain why the same Noida building can be taxed in several ways over its life: GST while it’s being built, no GST on resale and GST on rent only in certain cases.

GST on maintenance charges

Once you move in, GST can apply to your monthly maintenance. Under the rules for residents’ associations, maintenance is exempt if the charge is up to ₹7,500 a month per member. If it’s above ₹7,500, GST at 18% applies to the whole amount, including the first ₹7,500. Associations with an annual turnover of up to ₹20 lakh don’t need to register for GST at all, so smaller societies may not charge it.

For large homes in premium Noida societies, where monthly maintenance often exceeds ₹7,500, this adds 18% to the bill. It’s worth factoring into your running costs when you compare societies. Axis Bank’s guide to GST on flat purchase sets out the maintenance thresholds in more detail.

GST on the real estate sector: what developers face

Some GST rules for developers affect the prices you see, even though you don’t pay them directly.

No input tax credit on residential projects

Under the current structure, developers of residential projects can’t claim input tax credit on the GST they pay for materials and services. That GST becomes part of their cost, and it’s reflected in flat prices. This is the trade-off for the lower 1% and 5% rates buyers pay.

Buying from registered suppliers

Developers under the current structure must buy most of their inputs from GST-registered suppliers. If they fall short, they pay tax on the shortfall themselves. The rule is meant to bring more of the construction supply chain into the tax net.

Lower rates on some building materials

The GST 2.0 changes of September 2025 included, as widely reported, a cut in GST on cement from 28% to 18%. Because developers can’t claim input tax credit, lower taxes on materials reduce their costs directly. Our post on how GST reductions are making apartments in Noida more affordable looks at how that can flow through to buyers. The GST Council publishes its meeting decisions and rate changes.

GST on rent if you let out your Noida flat

Many Noida buyers let out their home, at least for a while. GST on residential rent depends on who the tenant is.

If you rent your flat to an individual for their own residence and they aren’t registered for GST, the rent is exempt. That covers most family and individual tenancies. If the tenant is registered for GST, such as a company renting a flat for an employee, GST at 18% generally applies, and the tenant usually pays it under the reverse charge mechanism rather than you collecting it.

Commercial property is different. Rent on a shop or office is taxable at 18%, and the landlord may need to register for GST if total rental income crosses the registration threshold. If you own both a flat and a commercial unit, keep the 2 sets of rent separate in your records.

GST in Noida compared with Ghaziabad and Gurugram

GST rates are set nationally, so a flat in Noida carries the same GST as a similar flat in Ghaziabad, Gurugram or Delhi. The differences between cities come from the price of the home, which changes the rupee amount of GST, and from state levies such as stamp duty and registration.

That makes GST easy to compare across the NCR. On a ₹1.5 crore under-construction home, GST is about ₹7.5 lakh wherever you buy. What changes from city to city is stamp duty, circle rates, authority charges and, of course, the price itself.

Ready or under construction: the GST angle

GST is only 1 part of the ready vs under-construction decision, but it’s a big part. On a ₹2 crore home, choosing a ready flat saves about ₹10 lakh in GST. Against that, under-construction homes may be priced lower, allow staged payments and let you choose your tower and floor.

The fairest comparison is total cost: price plus GST plus stamp duty, registration and other charges, set against the timing of payments and the risk of delays. Our comparison of ready to move vs under-construction flats in Noida in 2026 walks through the other factors.

GST and your home loan

When you take a home loan for an under-construction home, the bank disburses money in stages as construction progresses, and GST is charged on each instalment you pay. Some buyers fund the GST from their own savings, while others include it in the amount financed, depending on the bank’s policy and the loan-to-value limits.

For tax, the interest on a home loan for a house property can qualify for deductions within the limits of the law, and principal repayments can qualify for a separate deduction under the old tax regime. GST itself isn’t separately deductible for an individual buyer; it becomes part of the cost of the home, which matters when you later calculate capital gains on a sale. Our post on tax benefits for residential real estate investors covers the deductions in more detail.

What if you cancel an under-construction booking?

Buyers sometimes cancel a booking before completion, for example if their finances change. The GST already paid on instalments doesn’t simply disappear, so it’s worth knowing how refunds work.

In most cases, the developer refunds the amount paid, less any deduction allowed under the agreement, and can adjust the GST through a credit note if it acts within the time limits in the GST law. Where the developer can no longer issue a credit note because those limits have passed, the tax authorities have set out a route for an unregistered buyer to claim the GST refund directly, within a set period after cancellation. Ask the developer in writing how GST will be handled if you cancel, and keep every invoice and receipt.

GST and capital gains when you sell

GST you paid on an under-construction home isn’t lost when you later sell. For an individual buyer, it forms part of the cost of acquiring the home. When you sell, that cost is used to work out your capital gains, so including the GST reduces your taxable gain.

Keep every GST invoice from the developer with your sale deed and payment receipts. Years later, those papers are what your chartered accountant will need to calculate the gain correctly.

Questions to ask a developer about GST

• What GST rate applies to this home, and why?
• Is the quoted price inclusive or exclusive of GST?
• Which charges on the cost sheet carry GST, and at what rate?
• How will GST apply to payments made after the completion certificate?
• What happens to GST if tax rates change before completion?
• How will GST be handled if I cancel the booking?

Written answers to these 6 questions will tell you more about the true cost of a home than any brochure.

A 1-minute GST check before you book

Before you pay a booking amount, run this quick check. Is the building complete, with a completion or occupancy certificate? If yes, there should be no GST. If no, is the price at or below ₹45 lakh and the carpet area within 60 sq m? If both, GST should be 1%. Otherwise, expect an effective 5% on the home’s price, with separate charges possibly taxed at 18%. If the cost sheet doesn’t match this check, ask why before you pay.

Common mistakes with GST on flats

• Assuming every flat carries GST. Ready and resale homes with a completion certificate don’t.
• Comparing base prices only. 2 projects at the same base price can differ once GST and extras are added.
• Not asking for a line-by-line cost sheet. Different charges can carry different rates.
• Missing the ₹45 lakh cap on affordable housing. A small price increase can move a home from 1% to 5%.
• Forgetting GST on maintenance. In premium societies, 18% on maintenance above ₹7,500 a month adds up over the years.

Frequently asked questions

1.What is the GST on residential property in Noida?
GST on residential property in Noida is an effective 5% of the price for under-construction homes that aren’t affordable housing, and an effective 1% for affordable homes with a carpet area up to 60 sq m and a price up to ₹45 lakh. Ready homes with a completion certificate and resale homes in completed buildings attract no GST.

2.What is the GST rate on flats in Noida for a ready home?
There’s no GST on a ready flat in Noida bought after the completion or occupancy certificate is issued. The sale is treated as a sale of immovable property, which falls outside GST. The same applies to resale flats in completed Noida societies. You still pay stamp duty, registration and, on resale, the Noida Authority transfer charge.

3.How much GST do I pay on a new house purchase?
GST on a new house purchase depends on the stage of construction and the price. On an under-construction home in Noida that isn’t affordable housing, GST is an effective 5%, so a ₹2 crore home carries about ₹10 lakh in GST, paid with each instalment before completion. A home bought after the completion certificate carries no GST.

4.Is GST charged on property registration?
No. GST isn’t charged on property registration. Stamp duty and the registration fee are state levies under state law, separate from GST. In Noida, stamp duty is 7% for a male buyer, with a 1% concession for women on property worth up to ₹1 crore, plus a 1% registration fee. Professional fees for registration services can carry GST.

5.What is the GST rate on residential property for affordable housing?
The GST rate on residential property that qualifies as affordable housing is an effective 1%. In Delhi NCR metro cities, including Noida, a home qualifies if its carpet area is up to 60 sq m and its price is up to ₹45 lakh. Outside metro cities, the carpet area limit is 90 sq m with the same price cap.

6.Is there GST on immovable property like land?
There’s no GST on the sale of land or on the sale of a completed building with a completion certificate, because both are treated as sales of immovable property outside GST. GST on immovable property applies mainly to under-construction homes, at 1% or 5% effective, under-construction commercial units at 12% and certain rentals at 18%.

7.Did GST 2.0 change the GST on residential property?
No. The GST 2.0 changes that took effect on 22 September 2025 left the GST on residential property unchanged, at an effective 1% for affordable housing and 5% for other under-construction homes. The reforms did cut GST on some building materials, including cement from 28% to 18% as widely reported, which lowers developers’ costs.

8.Is GST charged on society maintenance in Noida?
GST applies to society maintenance in Noida only if the charge is above ₹7,500 a month per member, in which case 18% applies to the whole amount. Charges up to ₹7,500 are exempt, and residents’ associations with annual turnover up to ₹20 lakh don’t need GST registration. Premium Noida societies with high maintenance often charge GST.

9.How is GST charged on instalments for an under-construction flat?
GST is charged on each payment you make for an under-construction flat before the completion certificate is issued, including the booking amount and construction-linked instalments. Payments made after the completion certificate generally don’t attract GST. Ask the developer how GST applies under each payment plan, and keep receipts showing GST on every instalment.

10.How does GST affect the real estate sector’s pricing?
GST affects real estate sector pricing because residential developers can’t claim input tax credit on the GST they pay for materials and services. That tax becomes part of their cost and is reflected in flat prices. Developers must also buy most inputs from GST-registered suppliers, and lower GST on materials such as cement directly reduces their costs.