FinoPulse #010 · May 24, 2026
Know the Tax Implications Before You Buy
finoscape.com
Are you planning to buy a property in India? With the GST implications, the total cost of acquisition can be substantially impacted.
According to the GST law, a supply of goods or services is considered a taxable supply if it is made in the course or furtherance of business.
As a buyer, you need to consider the GST implications on your purchase. For example, if you are buying a property from a developer, you may need to pay GST on the purchase price.
Let’s say you are buying a property worth Rs 1 crore from a developer. If the GST rate is 12%, you will need to pay an additional Rs 12 lakhs as GST.
For instance, if you are buying a property from a developer like DLF, you may need to pay GST on the purchase price. Let’s say the purchase price is Rs 50 lakhs, and the GST rate is 12%. You will need to pay an additional Rs 6 lakhs as GST.
Our expert suggests that you should consider the GST implications on your purchase and factor it into your budget.
- Check the GST rate applicable to your purchase
- Factor in the GST implications into your budget
- Consult a tax expert to ensure compliance with GST laws
The GST Amnesty Scheme 2023 provides a one-time opportunity to clear pending GST return filings from the period July 2017 to December 2022, with a waiver of late fees.
This scheme is applicable to businesses and individuals who have pending GST return filings and want to avoid penalties and late fees.
However, there are some common mistakes to avoid, such as not filing returns on time, not paying taxes, and not maintaining proper records.
The GST Council has announced new rates for certain goods and services, effective May 1, 2026.
The new rates will apply to goods and services such as food, clothing, and electronics.
The GST Council has announced the removal of exemptions on certain services, including education and healthcare.
The new rates will apply to services such as tuition fees, hospital charges, and insurance premiums.
What is the GST rate applicable to the purchase of a property from a developer?
India’s Tax Intelligence Hub