Ready-to-move vs under-construction flats in Surat

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Side by side

GST on under-construction flats

Since 1 April 2019 GST on residential apartments outside the affordable category is 5% of the total consideration without input tax credit. Affordable housing — 1% — covers homes up to 60 sq m carpet in the six metros or 90 sq m elsewhere and up to ₹45 lakh. Surat is a non-metro city, but every luxury home is above ₹45 lakh, so 5% applies. The rate already assumes one-third of the value is land.

Worked example: ₹3.5 crore home

Is GST payable on a ready-to-move flat?

Under the CGST Act, construction of a complex for sale is a taxable supply except where the entire consideration is received after the completion certificate or after first occupation, whichever is earlier; the sale of a completed building is outside GST altogether. Possession alone does not decide it — if you paid any instalment before the completion certificate, GST is due on that supply. When you buy a nearly finished unit, ask the builder in writing how GST will be treated.

Stamp duty: when you pay

The rate is identical. For a ready flat you pay once, on the sale deed. For an under-construction flat the agreement for sale is registered early (RERA requires it before the builder takes more than 10%) and the conveyance is executed at completion; confirm the duty on each document on GARVI or with your advocate. See our stamp duty guide.

Construction-linked payment plans

An under-construction purchase is paid in stages written into the agreement — booking, agreement, foundation, each group of slabs, brickwork, finishing and possession. RERA section 19 obliges you to pay each demand on time, and your bank releases its share against the same demands. The stage percentages differ by project; ask for the schedule before you book.

Risks of buying under construction — and how RERA mitigates them

Advantages of buying under construction

• Choice — first pick of floor, view, orientation and stack.
• Staged outflow — payments spread across the build, matching bonus or business cycles.
• Current design — larger decks, service areas, VRV-ready provisions and modern amenities.
• Time to plan — interiors can be designed during construction.

Tax on home-loan interest

In the old regime, interest paid before completion is claimed in five equal instalments from the year of completion, within the ₹2 lakh self-occupied limit (reduced to ₹30,000 if construction takes more than five years from the end of the year of borrowing). The new regime gives no deduction for a self-occupied home. The Income-tax Act, 2025, effective 1 April 2026, carries these rules forward with new section numbers — check with your chartered accountant. More in the home loan guide.

Which suits you?

Under-construction luxury projects by RERA completion date

All the projects we represent are under construction. Here they are in order of the completion date registered with GujRERA.

† Listed: price shown on listing portals. ‡ Tentative: two portals agree but the builder has not published a price list. Starting prices as of 29 Sep 2026; they change — ask us for the current price sheet.

Sources

1. GST Council — FAQs on real estate — Feb 2024
2. CBIC — CGST Act Schedule II — official
3. CBIC — CGST Act Schedule III — official
4. PIB — GST Council decisions on real estate — 19 Mar 2019
5. RERA Act, 2016 — full text
6. RERA section 18 — return of amount and compensation

Last reviewed 29 Sep 2026 by the Surat Niwas research desk under our editorial policy. This guide is general information, not legal, tax or investment advice — confirm figures with the official portal, your bank or your advocate before you act.