Stamp Duty, Registration and GST on a Flat in Bengaluru
The price in a builder's brochure is only part of what you pay. On a ₹1 crore flat, government charges alone come to about 7.6% of the price for a ready home and about 12.6% for one that is still under construction, before parking, legal fees and deposits.
The rates below were checked against official sources in October 2026. They can change by notification, so confirm them before you sign.
Stamp duty
Stamp duty is a state tax on the sale deed. In Karnataka the buyer pays it. Under Article 20 of the Schedule to the Karnataka Stamp Act, 1957, a sale deed is charged at 5% of the market value of the property.
The Act defines market value as the price the property would fetch in the open market, in the Deputy Commissioner's opinion, or the consideration stated in the document, whichever is higher. The department publishes guidance values under section 45B, and the sub-registrar compares your price with them, so duty is in practice charged on the higher of the two.
For a flat bought from a builder, the Act says duty is worked out on the market value of the fully built flat, whatever the stage of construction. Buying early does not shrink the duty.
The Schedule also has lower rates for the first sale of a flat or apartment: 2% where the market value is ₹20 lakh or less, and 3% where it is above ₹20 lakh and up to ₹45 lakh. The band from ₹35 lakh to ₹45 lakh was added by the Karnataka Stamp (Amendment) Act, 2021. Resales, and first sales above ₹45 lakh, pay the full 5%. A ₹1 crore flat is well above these limits.
Additional duty and surcharge
Two further charges are calculated on the stamp duty, not the price:
- Additional duty. Section 3B of the Stamp Act adds 10% of the duty on sale deeds and similar documents. Online guides often call this a cess.
- Local body surcharge. Inside the Greater Bengaluru Area, section 170 of the Greater Bengaluru Governance Act, 2024 levies a surcharge of 2% of the stamp duty on sale deeds. That Act replaced the Bruhat Bengaluru Mahanagara Palike Act, 2020 in 2025 and kept the same 2% rate. Elsewhere in Karnataka, the Municipal Corporations Act (section 140) and the Municipalities Act (section 99) set 2% inside city corporation and municipal limits, and the Panchayat Raj Act (section 205) sets 3% in gram panchayat areas.
For a flat inside Bengaluru's city limits, the 5% duty therefore becomes 5.6% once the additional duty and surcharge are included.
An agreement to sell carries its own stamp duty. Where possession is not handed over, Article 5(e)(ii) charges 0.5% of the consideration, with a minimum of ₹500. The Karnataka Stamp (Amendment) Act, 2023 raised this from 0.1% and removed the old ₹20,000 cap from 3 February 2024. On a ₹1 crore flat that is ₹50,000, and the duty paid on the agreement is adjusted against the duty on the final sale deed between the same parties. An agreement that hands over possession before the sale deed is charged the same duty as the sale deed.
Registration fee
The registration fee was doubled from 1% to 2% of the property value with effect from 31 August 2025. The Revenue Department's gazette notification (RD/46/MNMU/2025, dated 29 August 2025) changed the fee from ₹10 to ₹20 for every ₹1,000 of value, and the Department of Stamps and Registration announced the 2% rate in a press note.
GST: under construction and ready
GST applies to the construction service while a flat is being built. Under Notification 03/2019-Central Tax (Rate), the GST Council's March 2019 decisions and the Finance Ministry's FAQ, the effective rates from 1 April 2019 are:
| Type of flat | Effective GST | Input tax credit |
|---|---|---|
| Affordable residential apartment | 1% | Not available |
| Other residential apartment | 5% | Not available |
These are effective rates on the total amount charged, and they already allow for the land share of the price. An apartment counts as affordable only if its carpet area is no more than 60 square metres in a metropolitan city (Bengaluru is named in the list) and the gross amount charged is no more than ₹45 lakh. That gross amount includes the land share, parking, preferential location charges and similar items. A flat that crosses either limit pays 5%.
No GST is charged when the entire price is received after the completion certificate is issued, or after first occupation, whichever is earlier. If you pay part of the price before the certificate arrives, ask the builder in writing how GST applies to the balance.
These rates date from 2019 and still apply. The GST rate overhaul that took effect on 22 September 2025 changed only three construction entries, all for works contracts (earthwork for government, sub-contracts for that work, and offshore oil and gas projects). The GST Council's meeting on 8 October 2026 made no change for homes either.
Other charges to budget for
None of these has a single official rate, so ask for each in writing.
- Parking and club membership. These may be priced separately. For tax deduction purposes, the Income Tax Department counts parking, club membership, utility fees, maintenance and advance fees as part of the sale consideration.
- Maintenance deposits. The RERA Act expects buyers to pay their share of maintenance, municipal taxes, utility charges and similar items as the agreement provides. The agreement sets the amounts, so ask what each deposit is for and who holds it.
- Legal fees. Many buyers pay a lawyer to check title, approvals and the agreement. Fees vary.
- Tax withheld on payment. If the price or the stamp duty value is ₹50 lakh or more, the buyer must deduct 1% before paying the seller and deposit it with the government through Form 26QB. On ₹1 crore that is ₹1 lakh. It comes out of the payment to the seller, so it is not an extra cost, but it affects cash flow.
- Home loan. The Reserve Bank's Credit Facilities Directions tell banks not to count stamp duty, registration and other documentation charges in the cost of the property they finance, except for homes costing up to ₹10 lakh. Plan to pay these from your own funds.
Worked example: a ₹1 crore flat
Assumptions: an agreement value of ₹1,00,00,000 before GST, a flat above the affordable limits, a location inside the Greater Bengaluru Area, and a guidance value that is not higher than the price.
| Charge | Basis | Under construction | Ready, after completion certificate |
|---|---|---|---|
| GST | 5% of price | ₹5,00,000 | Nil |
| Stamp duty | 5% of dutiable value | ₹5,00,000 | ₹5,00,000 |
| Additional duty | 10% of stamp duty | ₹50,000 | ₹50,000 |
| Surcharge | 2% of stamp duty | ₹10,000 | ₹10,000 |
| Registration fee | 2% of value | ₹2,00,000 | ₹2,00,000 |
| Total | ₹12,60,000 | ₹7,60,000 | |
| As a share of price | 12.6% | 7.6% |
Before you rely on these figures
- Confirm the duty and fee for your exact property with the sub-registrar or the Kaveri portal run by the Department of Stamps and Registration.
- Ask your lawyer what counts as the dutiable value for your deed.
- This is general information, not tax or legal advice. A chartered accountant or lawyer can confirm how these charges apply to you.
Key points
- Stamp duty is 5% of the higher of price and guidance value, plus 10% additional duty and a 2% or 3% surcharge on the duty itself, which makes 5.6% inside Bengaluru's city limits. First sales of flats up to ₹45 lakh pay 2% or 3% instead of 5%.
- The registration fee has been 2% since 31 August 2025.
- GST is 5% on most under-construction flats and 1% on affordable ones, and none is charged on a flat sold after completion.
- On a ₹1 crore flat the government charges come to about ₹12.6 lakh under construction and ₹7.6 lakh when ready.
- Ask for parking, deposits and legal fees in writing, and budget for them separately.
Sources
- https://dpal.karnataka.gov.in/storage/pdf-files/34%20of%201957(E).pdf
- https://dpal.karnataka.gov.in/storage/pdf-files/Acts%20&%20Ordinance/26%20of%202021%20(E).pdf
- https://dpal.karnataka.gov.in/storage/pdf-files/04of2024Stamp(E).pdf
- https://dpal.karnataka.gov.in/uploads/media_to_upload1750663489.pdf
- https://dpal.karnataka.gov.in/storage/pdf-files/30%20of%202021%20(E).pdf
- https://dpal.karnataka.gov.in/storage/pdf-files/acts%20alpha%20and%20dept%20wise%20acts/(22%20of%201964)%2030%20of%202021%20(E).pdf
- https://dpal.karnataka.gov.in/storage/pdf-files/doc/14%20of%201993%20(E)%2025%20of%202021.pdf
- https://igr.karnataka.gov.in/storage/pdf-files/RegistrationFee.pdf
- https://igr.karnataka.gov.in/storage/pdf-files/pressnotefinal.pdf
- https://igr.karnataka.gov.in/new-page/Payment%20of%20Stamp%20Duty/en
- https://igr.karnataka.gov.in/en
- https://kaveri.karnataka.gov.in/landing-page
- https://gstcouncil.gov.in/sites/default/files/2024-05/download_2024-05-17t161406.556.pdf
- https://www.gstcouncil.gov.in/sites/default/files/2024-02/faq-real-estate-sector.pdf
- https://gstcouncil.gov.in/sites/default/files/2024-10/34th_gst_press_information_bureau.pdf
- https://gstcouncil.gov.in/sites/default/files/2025-09/press_release_press_information_bureau_0.pdf
- https://www.gstcouncil.gov.in/sites/default/files/2026-10/press_release.pdf
- https://www.incometaxindia.gov.in/w/tds-from-sum-paid-to-buy-an-immovable-property
- https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13156
- https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf
This guide is general information, not legal, tax or financial advice. Rules and rates change; check with a lawyer, chartered accountant or your bank before you decide.