What is GST on commercial real estate purchase?
GST is applicable on the purchase of under-construction commercial properties in India at a rate of 12% (with Input Tax Credit). Ready-to-move commercial properties those for which a Completion Certificate has been issued are exempt from GST, similar to residential properties.
GST Rate on Commercial Real Estate
- Under-construction commercial property: 12% ITC available if GST-registered.
- Ready-to-move commercial property (OC obtained): 0% (Nil).
- Long-term lease of commercial property: 18% on lease premium/one-time charge ITC available if GST-registered.
- Renting commercial property: 18% on rental income ITC available.
What Counts as Commercial Property for GST?
- Office spaces and business complexes.
- Retail shops and showrooms.
- Warehouses and logistics parks.
- Hotels and hospitality units.
- Co-working spaces.
- Industrial sheds.
GST on commercial real estate is 12% for under-construction properties, with ITC available for GST-registered buyers. Ready-to-move commercial properties are GST-exempt, similar to the residential segment.
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