GST on Under-Construction Rowhouses Explained

GST changes your real cost of buying a home. Skipping this steps in your budget can lead to a surprise later. The tax is charged on top of the base price. You also pay stamp duty and a registration fee. Your final outlay ends up higher than the number on a brochure. Buyers of a large rowhouse like the ones at Godrej Florenne feel this more. The tax is calculated on a bigger base price to begin with.

• Standard Rate for Non-Affordable Homes: GST is charged at 5 percent of the property value, after a land value deduction. This rate comes with no Input Tax Credit benefit.
• Exemption for Completed Properties: GST does not apply once a property gets its completion certificate. A ready-to-move-in home avoids this charge entirely.

An under-construction property has not yet received its completion certificate. Godrej Florenne is newly launched, with possession set for 8 October 2030 for Phase 1 and 8 October 2031 for Phase 2. It falls into this category for years to come. Here is how GST applies across the two housing types under current rules.

Affordable Housing Projects

GST here works out to 1.5 percent, after a one-third land value deduction. This is the same as charging 1 percent of the total value. To qualify, a home must be priced up to Rs 45 lakh. The carpet area must stay under 60 square metres in metro cities. In other cities, the limit is 90 square metres.

Non-Affordable Housing Projects

GST here works out to 7.5 percent, after the same land value deduction. This is the same as charging 5 percent of the total value. Godrej Florenne's rowhouses start at Rs 5.40 Cr. That is well past the Rs 45 lakh cap. Each typology also spans between 3,725 and 5,523 sq ft. Every unit here falls under this non-affordable slab.

Every rowhouse at Godrej Florenne sits above the affordable housing limits. This runs from the 4 Bed Optima to the 5 Bed Luxe. Buyers across all four typologies pay the same 5 percent GST rate. No lower slab is available, whichever unit you choose. This keeps the tax math simple for every buyer here. You do not need to check separate limit for each home size.

The calculation removes the land value from your total cost first. Land itself does not attract GST under current rule. Land value is treated as one-third of the property price. GST then applies only to the remaining two-thirds. The formula looks like this.

• GST Amount = (Property Value x 2/3) x GST Rate / 100
• For a non-affordable home, the rate before land deduction is 7.5 percent. This simplifie to 5 percent when applied to the full property value.

Godrej Florenne offers four rowhouse sizes at different starting prices. Your GST amount will vary based on the typology you choose. The table below shows the estimated GST at each starting price.

Here is the full step-by-step math for a 4 Bed Luxe rowhouse priced at Rs 6.55 Cr.

• Total Property Value: Rs 6,55,00,000
• Taxable Value After Land Deduction: Rs 6,55,00,000 x 2/3 = Rs 4,36,66,667
• GST Amount: Rs 4,36,66,667 x 7.5 percent = Rs 32,75,000
• Simplified Check: Rs 6,55,00,000 x 5 percent = Rs 32,75,000
• Total Cost Including GST: Rs 6,55,00,000 + Rs 32,75,000 = Rs 6,87,75,000

Both methods land on the same figure. This confirm that a flat 5 percent works as a quick shortcut for any non-affordable home here.

• Ready-to-Move-In Homes Skip This Tax: Once a project gets its completion certificate, GST no longer applies. Buyers of finished homes avoid this cost entirely.
• GST Is Separate from Stamp Duty: You still need to budget for stamp duty and registration charge on top of GST. These are separate government levies.
• GST Follows the Payment Schedule: Godrej Florenne uses a construction-linked payment plan. GST is usually charged on each instalment as it falls due, not as one lump sum.
• No Input Tax Credit for Buyers: Current GST rules do not let individual buyers claim any credit against the tax paid on their rowhouse.

The buyer pays GST directly to the builder with each payment instalment. The builder is then responsible for sending this amount to the government. This is why GST often appears as a separate line on your payment schedule. It is not folded into the base price of your rowhouse.

GST adds a real amount to the true cost of any Godrej Florenne rowhouse. It deserves the same attention as your loan planning and your down payment. Every typology here falls under the non-affordable slab. You can safely apply the flat 5 percent rate to estimate your final cost. There is no need to check any lower thresholds for this project. Plan for this early, well before the project's launch on 20 September 2026. That keeps your total cost math accurate from the very first payments.