Do I pay GST on the broker's fee?

Yes, if the broker is GST-registered (mandatory once commission income crosses Rs 20 lakh) - their bill carries 18% GST, payable by whoever pays the brokerage. Registered brokers must charge 18% GST on their commission invoice An unregistered broker (below Rs 20 lakh) cannot legally charge GST This 18% is separate from and in addition to any GST on the flat sale price itself

Is 18% GST charged on real estate commission?

Yes, if the broker is GST-registered (mandatory once commission income crosses Rs 20 lakh) - their bill carries 18% GST, payable by whoever pays the brokerage. Registered brokers must charge 18% GST on their commission invoice An unregistered broker (below Rs 20 lakh) cannot legally charge GST This 18% is separate from and in addition to any GST on the flat sale price itself

CAPGAIN › Answers › GST on flats & property › Do I pay GST on the broker's commission when I sell my flat?

Do I pay GST on the broker's commission when I sell my flat?

Short answer: Yes, if the broker is GST-registered (mandatory once commission income crosses Rs 20 lakh) - their bill carries 18% GST, payable by whoever pays the brokerage.

Law: Notification 11/2017-CT(R), SAC 997221 · Authority: CBIC · Status: in force · Checked 25 Sept 2026

What you need to know

Registered brokers must charge 18% GST on their commission invoice
An unregistered broker (below Rs 20 lakh) cannot legally charge GST
This 18% is separate from and in addition to any GST on the flat sale price itself

Who this applies to: buyers/sellers/landlords/tenants

Official / primary source: indiafilings.com

The law behind it

Notification 11/2017-CT(R): base construction-service rates

The master notification fixing GST rates for construction/works-contract services (heading 9954). Originally 18% (effectively 12% after a 1/3rd land deduction); heavily amended since, especially by the 2019 housing package.

Notification No. 11/2017-Central Tax (Rate) · amended · source

GST on real-estate brokerage/agent commission: 18%

A real-estate agent's commission - paid by buyer, seller, landlord or tenant - is a taxable service at 18% GST, once the broker's turnover crosses the Rs 20 lakh registration threshold.

Notification 11/2017-CT(R), heading 9972/997221 · in force · source

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