By Shishir, Real Estate Content Writer · Published 13 Jul 2026 · Last updated 13 Jul 2026

A general buyer guide for 2026. GST rates and rules are set by the government and can change, so confirm the current rate and your project's GST treatment with the developer and a tax adviser before you book.

Goods and Services Tax is one of the biggest cost differences between two otherwise similar apartments, yet many buyers only discover it when they see the final payment schedule. Whether GST applies at all, and at what rate, depends on one thing: the construction stage of the home you buy. An under-construction flat carries GST; a ready-to-move flat with its completion certificate does not. On a purchase in Kompally, that single distinction can change your total outlay by several lakh rupees, so it belongs in your budget from day one.

This guide explains the GST rates that apply to residential apartments in Hyderabad, the difference between standard and affordable housing, why completed homes are exempt, and how to factor GST into your overall cost. The rates below are the standard figures; always reconfirm the current rate and your specific project's treatment before you commit.

When GST Applies to a Home Purchase

GST is a tax on the supply of under-construction property. In simple terms, if you are buying a home that is still being built and the builder has not yet received the completion or occupancy certificate, the sale is treated as a supply of service and GST is charged on the amount you pay. Once that certificate is issued and the property is legally ready to move in, the sale is treated like any completed immovable property and no GST is levied. This is why the same apartment can carry tax at the pre-launch stage and none after completion.

Bottom line: GST applies only to under-construction homes, not to ready-to-move flats that already have a completion certificate.

GST Rates on Apartments in 2026

For residential apartments, the applicable GST rates are as follows. They apply to the property value and are charged without input tax credit under the current structure.

Indicative standard rates; the government can revise them, and eligibility for the affordable rate depends on price and carpet-area limits. Verify the current rate and your project's status before booking.

Bottom line: most standard apartments under construction attract 5% GST, affordable homes 1%, and completed homes none.

Standard vs Affordable Housing

The lower 1% rate is reserved for homes that fall within the government's affordable-housing definition, which sets both a price ceiling and a carpet-area limit, with a smaller area cap in metro cities than in non-metro areas. Homes above those thresholds are treated as standard and taxed at 5%. Because premium and mid-premium apartments in Hyderabad usually sit above the affordable price band, buyers of larger 2 and 3 BHK homes should generally plan for the 5% rate on an under-construction unit rather than assume the lower figure.

Bottom line: the 1% rate is only for homes within the affordable price and area limits; larger apartments are taxed at 5%.

Why Ready-to-Move Homes Attract No GST

Once a project receives its completion certificate, a sale of that home is no longer a supply of under-construction service, so GST does not apply. This is a genuine saving that buyers weigh against the trade-offs of ready inventory, which often costs more per square foot and offers less choice of unit. It is also one of the practical differences between buying early in a project and buying after completion, a decision covered in our guide on pre-launch versus ready-to-move apartments. Neither choice is automatically better; GST is one factor in the wider comparison.

Bottom line: completed homes save the GST cost but usually carry a higher base price, so compare the total, not just the tax.

How GST Affects Your Budget in Kompally

Treat GST as a separate line on top of the quoted apartment cost when the home is under construction. When you study the price of a project, add the applicable GST to the base value, then add stamp duty and registration on top of that, and any one-time developer charges. Because most active Kompally projects are under construction or at pre-launch, buyers here should assume GST will apply and plan for it, then confirm the exact figure in the payment schedule. For the full set of buyer costs and checks, read our home buying guide before you commit.

Bottom line: for an under-construction home, budget GST as a distinct cost alongside stamp duty and registration.

Conclusion

GST is a cost you can predict once you know one fact: is the home under construction or ready to move? An under-construction apartment in Hyderabad attracts 5% GST, or 1% if it qualifies as affordable housing, while a completed home with its certificate attracts none. For most Kompally projects, which are under construction or at pre-launch, plan for GST as a distinct line in your budget, add stamp duty and registration on top, and confirm the exact figures in the payment schedule before you book. Weigh the tax alongside base price rather than in isolation, and the total picture becomes clear.

For more local detail, return to the Kompally real estate guide, or explore the property guides blog.