Is GST Applicable on Ready-to-Move Residential Projects?

Feb 05, 2026

GST is one of the most common concerns for homebuyers. Many buyers assume GST applies to all residential properties, but that is not always the case. In 2026, GST rules clearly define when tax is applicable and when buyers are exempt, especially for ready-to-move residential projects.

What Is a Ready-to-Move Residential Project?

A ready-to-move residential project is one where construction is completed and the builder has received all required approvals, including completion or occupancy permission. These homes are available for immediate possession and are often preferred by buyers who want clarity on pricing and possession.

GST Rules for Ready-to-Move Homes

As per current regulations, GST is not applicable on ready-to-move residential properties. This is because GST is charged only on under-construction properties. Once a project is completed and approved by the local authority, buyers are not required to pay GST on the property value.

When Does GST Apply in Residential Projects?

GST applies only if a buyer purchases an under-construction property. In such cases, GST is charged at:

1% GST for affordable housing projects
5% GST for non-affordable housing projects

These rates apply without input tax credit and are charged until the project receives completion certification.

Why Ready-to-Move Homes Are Preferred by Buyers

Many buyers prefer ready-to-move homes because there is complete price transparency. Since GST is not applicable, buyers only need to pay stamp duty, registration charges, and other government fees. This makes budgeting easier and reduces last-minute surprises.

So, Why Ready-to-Move Homes Make Financial Sense

Ready-to-move residential projects are popular because:

No GST is applicable on the property value
Immediate possession is available
Buyers know the final cost upfront
Lower risk compared to under-construction projects
Suitable for both end-users and investors

Explore Ready-to-Move Homes with ONLYNEW

ONLYNEW helps you discover verified ready-to-move residential projects across Ahmedabad with complete clarity on pricing, approvals, and taxes. Whether you are buying for self-use or investment, we help you move forward with confidence.