Are you planning to buy a flat in Mumbai this year? If so, you’ve probably calculated the base price, the stamp duty, and the registration fees. But there is one number that often catches buyers off guard at the last minute: GST.
In a market like Mumbai, where property values are high, even a 5% tax can mean the difference of several lakhs. With the rollout of “GST 2.0” in late 2025, the rules have become sharper, more transparent, and, if you know where to look, highly beneficial for your pocket.
Sayba Group believes transparency is the foundation of trust, with over 21 years of helping 5,000+ families navigate the Mumbai market. Here is exactly what you need to know about GST in 2025 to make a move that is both legally sound and financially smart.
The Golden Rule: 0% vs 5%
The most important thing to remember is that GST is a tax on services, not just property. This leads to a massive divide in what you pay.
- Ready-to-Move-In (RTM) Homes: 0% GST. If a project has received its Occupancy Certificate (OC), it is classified as a completed good. You pay zero GST.
- Under-Construction (UC) Homes: 1% to 5% GST. Since the builder is “serving” you by constructing the home, GST applies to all payments made before the OC is issued.
The Math of the "Two-Thirds" Rule
Did you know you don’t pay GST on the total agreement value? GST is only levied on the construction cost, not the land. The government assumes land is one-third of the value.
- Taxable Value: 67% of your total agreement value.
- Exempt Value: 33% (land value).
The GST 2.0 Reform: What Changed in September 2025?
The government announced historic reforms to streamline the tax slabs on September 22, 2025. This is a bag of both savings and structural changes to Mumbai buyers.
1. Lower Material Costs The GST on cement was slashed from 28% to 18%. Tiles, paints, and ceramic fittings also saw similar drops. For developers like us, this reduces the “input cost” of construction. While this doesn’t change the GST percentage you pay, it allows reputable developers to maintain stable base prices despite rising inflation.
2. Standardised 5% Slab The reform solidified the 5% bracket for non-affordable housing (anything above ₹45 Lakhs or 60 sq. metres in MMR) without Input Tax Credit (ITC). This means the 5% you see on your demand letter is exactly what goes to the government, no hidden adjustments.
Affordable Housing: The 1% Advantage
If you are a first-time buyer looking for an entry point in areas like Kurla or Jogeshwari, the “Affordable” tag is your best friend.
To qualify for the 1% GST rate, your property must meet two strict criteria in the Mumbai Metropolitan Region (MMR):
- Value Cap: The total price must be ₹45 Lakhs or less.
- Size Cap: The carpet area must be 60 sq. meters (approx. 645 sq. ft.) or less.
The Benefit: On a ₹40 Lakh home, you pay just ₹40,000 in GST. It’s a massive win for middle-class families.
The Sayba Strategy: Saving Lakhs via OC-Received Projects
In 2025, smart Mumbaikars are shifting toward ready-possession homes. Why? Because the “Wait Tax” is real.
When you buy an under-construction property, you pay 5% GST and wait 2-3 years while paying both rent and EMI. When you buy a Sayba Group project that has already received its Occupancy Certificate (OC), you bypass the GST entirely.
Why Choose Sayba’s Ready Homes?
- Instant Possession: No more “projected” timelines. What you see is what you get.
- Zero GST Burden: Spend that 5% on your home interiors or a new car.
- Legal Security: An OC implies that the building is secure, legal and prepared to welcome your family.
- Proven Legacy: With over 6 million sq. ft. delivered, we prioritise your peace of mind.
Featured OC-Received Savings: Explore projects like Sayba Residency or Sayba Icon in Kurla. These developments offer modern 1, 2, and 3 BHK residences where you can move in tomorrow without writing a cheque for GST.
Don't Forget the Society Maintenance GST
Once you move in, the GST journey isn’t quite over. If you live in a large complex with premium amenities, your monthly maintenance bill might be subject to tax.
- The Threshold: 18% GST is only charged when your monthly maintenance is more than 7,500.
- The Society Limit: The housing society should also be turning over over 20 lakhs in a year.
- The Exemption: Necessary services such as water, electricity and municipal taxes are exempt. Always demand a clear breakdown in your bill!
Conclusion
The GST environment in 2025 will reward transparency. It is either the flexibility of a Construction Linked Plan (CLP) at 5% or the tax-free safety of a ready-to-move home; the point is to deal with a developer who reveals all the details.
Your 2025 GST Checklist:
- Request the OC: Does the building stand prepared? If yes, save the GST.
- Check the 2/3 Rule: Make sure that you only calculate your tax on the value of the construction.
- Check Affordable Limits: Does your 1BHK meet the 45L/60 sqm requirements?
- Confirm GST-Inclusive Pricing: You should always request a cost sheet which indicates the final all-inclusive price
In Sayba Group, we have founded our 18-year history on the fact that we deliver homes on time or earlier: no surprises, no tax evasions, just quality living.
Are you willing to locate a home that suits your budget and your schedule? Visit our latest OC-received projects today and save the 5% GST burden.Have questions about GST charges on real estate? Get in touch with our team for clear and reliable advice.