Impact of GST on Real Estate The recently implemented tax GST (Goods & Services Tax) which gained mixed reactions from the people is also applicable in the residential real estate transaction. Residential construction services will invite 12% of tax and is applicable to the developers selling residential units before completion of construction to the home buyers. Cement, sand, steel attract GST and hence the prices along with GST on the property also goes up. The luxury property is entitled up to 12% GST and affordable housing projects are exempted from the GST. If the occupancy certificate for the project has been received, then, no GST will be applicable. GST has also been levied on the renting of residential property. It is advised to the buyers to be aware when the builder asks you to pay just 1% or a very nominal payment and the balance after possession, you will still have to pay the GST on the full amount. Which is a bit more money from your pocket where you need ...