It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority. GST is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale.
Effective rate of tax and credit available to the builders for payment of tax are summarized in the table for pre-GST and GST regime.
| Period | Output Tax Rate | Input Tax Credit details | Effective Rate of Tax | |
| Pre- GST | Service Tax: 4.5%
VAT: 1% to 5% (composition scheme) |
Central Excise on most of the construction materials: 12.5%
VAT: 12.5 to 14.5% Entry Tax: Yes |
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