GST on Flats in Lucknow: 5%, 1% or Nil, With Worked Examples (2026)

GST on flats in Lucknow is 5% of the price, without input tax credit, on an under-construction flat that is not "affordable", and 1% on an affordable one: carpet area up to 90 sq m (about 969 sq ft) in a city like Lucknow and a price up to ₹45 lakh. There is no GST when the whole price is paid after the completion certificate or first occupation. Shops and offices in a standalone commercial project pay an effective 12%, with input tax credit for the developer.

Every rate in this guide comes from the 33rd GST Council's recommendations (PIB, 24 February 2019), the GST Council's real estate FAQ and the rate notification 11/2017-Central Tax (Rate) as amended from 1 April 2019. The worked examples use developers' quoted base prices from our listings.

GST rates on flats and other property in 2026

These are effective rates. The notification charges a higher rate on two-thirds of the price and treats the remaining one-third as the value of land, which is not taxed; the effective rates above already include that deduction, so apply them to the full price and do not deduct land again.

The rates have stood since 1 April 2019. The September 2025 GST rate changes (Notification 15/2025-Central Tax (Rate), in force from 22 September 2025) amended other construction entries in the same table but not these.

What counts as an affordable flat for GST?

A flat is affordable for GST only if it passes both tests:

• Carpet area: up to 60 sq m in the six metropolitan areas, and up to 90 sq m everywhere else. The metros are Bengaluru, Chennai, Delhi NCR (Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon and Faridabad), Hyderabad, Kolkata and Mumbai (all of MMR). Lucknow is not on the list, so the 90 sq m limit applies: about 969 sq ft of carpet area.
• Gross amount: not more than ₹45 lakh, in metros and elsewhere alike.

The gross amount is more than the base price. The notification counts the construction charge, the land charge and any other amount the promoter charges you, naming preferential location, development, parking and common facility charges. So a flat with a ₹43 lakh base price and ₹3 lakh of parking and location charges is not affordable for GST.

Why most Lucknow flats on our listings pay 5%

Many 2 BHKs here pass the area test and fail the price test. The 2 BHK at Eldeco Skywalk has 858 sq ft of carpet area, about 79.7 sq m and well under 90 sq m, but its price of ₹69.11 lakh is above ₹45 lakh, so it pays 5%. The same is true of the Eiffel Palm Vista 2 BHK (850 sq ft carpet, ₹81.41 lakh). No private under-construction home on our listings comes in at ₹45 lakh or less.

Worked examples of GST on flats in Lucknow

The table applies the rates to quoted base prices. It assumes the whole price is paid before completion and that the developer charges GST at the standard rate for its project; confirm the figure on the cost sheet.

The full bill on one flat

Take the ₹69.11 lakh Eldeco Skywalk 2 BHK bought by a man:

• Base price: ₹69,11,000
• GST at 5%: ₹3,45,550
• Stamp duty at 7%: ₹4,83,770
• Registration at 1%: ₹69,110
• Total: ₹78,09,430, before parking, club or maintenance deposits

We have worked stamp duty on the base price. Ask the sub-registrar or the developer what value goes on the deed in your case; our stamp duty guide explains the circle-rate rule. A woman buying the same flat pays 6% duty, or ₹4,14,660.

Ready-to-move flats: when there is no GST

The construction entries in the notification exclude a sale "where the entire consideration has been received after issuance of completion certificate", or after first occupation, whichever is earlier. In practice:

• Ready flat, completion certificate issued, all money paid after it: no GST on the sale.
• Flat booked before completion, finished later: GST applies to the instalments paid before the completion certificate.
• Resale of a finished flat by its owner: the flat is complete and you pay the whole price after completion, so the same exclusion applies and the seller does not charge GST.

So ask a developer selling a "ready" flat for the completion or occupancy certificate and its date. On our listings, ready projects include Rishita Manhattan (possession from June 2024) and Rishita Serenity (December 2025), and you can browse the rest on our ready-to-move projects page. Our ready to move flats guide covers the other papers to see.

GST on commercial property

For shops and offices, what matters is the project, not the unit. In a Residential Real Estate Project, where the carpet area of commercial units is no more than 15% of the total, shops pay the same 5% as flats. In any other project, such as a standalone commercial building, the effective rate is 12% of the total price, and the developer can take input tax credit.

On our listings, Marigold Kailasha Awadh in Sarojini Nagar is a commercial building, so on the face of it the 12% entry applies: ₹4,82,520 on a ₹40.21 lakh shop and ₹6,00,000 on a ₹50 lakh office suite. Whether a business buyer can then claim credit for that GST is a separate question for a tax adviser. Our guide to commercial property in Lucknow works through the full cost and yield.

How GST is charged on instalments

On a construction-linked plan, GST falls due on each instalment as the developer raises it, at the rate for the project, until the completion certificate. A few points follow:

1. The booking amount carries GST if the flat is under construction.
2. Charges for parking, location or clubs are part of what you pay the promoter, which is why the affordable test counts them.
3. The rate is set by the project. Projects that were already running on 1 April 2019 could choose the old rates of 8% and 12% with input tax credit by 10 May 2019, according to the GST Council's FAQ. That choice is now history for most projects, but if a developer quotes an unusual rate, ask which entry it is using.
4. Stamp duty is separate. GST goes to the developer for deposit with the government; stamp duty and registration are paid at the sub-registrar's office at registry.

GST and your home loan

GST is part of what you pay the developer, but lenders work out their loan limit on the property cost under RBI rules, and stamp duty and registration are left out of that cost. Ask your lender in writing whether it will fund the GST portion of each demand. Our home loan guide works out the down payment on real prices.

Common GST mistakes Lucknow buyers make

• Assuming a small flat is affordable. Under 90 sq m of carpet area is not enough; the gross amount must also be ₹45 lakh or less.
• Using the metro limit. Lucknow is not one of the six metros, so the limit is 90 sq m, not 60 sq m.
• Deducting land twice. The 1%, 5% and 12% rates already allow for land.
• Paying GST on a ready flat without asking. If the completion certificate came before your payment, ask why GST is being charged.
• Leaving GST out of the budget. On a ₹1.83 crore flat, 5% is ₹9.15 lakh.

Questions to ask the developer about GST

1. Which GST entry and rate apply to this project, and why?
2. Is GST shown separately on every demand letter, against each payment stage?
3. Which charges, such as parking, club or location charges, carry GST, and at what rate?
4. Has the completion certificate been issued, and on what date? If yes, why is GST being charged on any payment made after it?
5. For a shop or office, is the project a Residential Real Estate Project, with commercial carpet area of 15% or less, or not?

Get the answers in writing and keep them with your agreement for sale.

How we can help

We prepare a written cost sheet for each client with GST, stamp duty, registration and TDS worked on the right values, and we check a "ready" flat's completion papers before you pay. For help with a flat you are considering, contact us or see our residential buying service.