GST on Under-Construction Flats in Chennai
Buying a home while it is still being built is a smart way to get a lower price. Your home's value also grows a lot by the time you get the keys. However, to know your final cost, you must understand GST on under-construction flats in Chennai. Under Indian tax laws, buying a flat before it gets its Completion Certificate (CC) or Occupancy Certificate (OC) is treated as a service, not just a property sale. Because of this, you have to pay Goods and Services Tax (GST) on the purchase.
For homebuyers in Chennai, the GST rate falls into two main groups without Input Tax Credit (ITC):
- 1% GST for Affordable Housing: This applies to smaller homes with a carpet area up to 60 sq. meters (around 645 sq. ft.) in big cities like Chennai, as long as the total price is ₹45 lakh or less.
- 5% GST for Non-Affordable/Luxury Housing: This applies to all other flats that cost more than ₹45 lakh or are larger than 60 sq. meters of carpet area.
The government does not tax the land part of your home. It takes off one-third of the total value as land cost. Because of this rule, the original 7.5% and 1.5% tax rates come down to just 5% and 1% on the total price. If you plan to buy a home in a premium project like Prestige Falcon City Chennai, knowing about this 5% tax helps you plan your budget along with stamp duty and registration fees. Even with the 5% GST on under-construction flats, early buyers at Prestige Falcon City Chennai get great pre-launch prices, easy payment plans, and high value growth in South Chennai's busy IT area.
Spotlight on Prestige Falcon City Chennai: South Chennai's Premier Township
Located on the fast-growing Medavakkam–Sholinganallur Road in South Chennai, Prestige Falcon City Chennai is a grand residential township built by the famous Prestige Group. Spread across 23 acres of land, the project offers peaceful living. It keeps 80% of the land open for green spaces, parks, and nature, while only 20% is used for buildings.
Master Plan, Towers, and Configurations
The township has 2,170 Vaastu-friendly luxury flats spread across 11 blocks and 22 high-rise towers. Each tower has 2 Basements + Ground + 14 Floors (2B+G+14). This layout gives residents plenty of underground parking and wide gaps between buildings so every home gets fresh air, sunlight, and privacy.
| Configuration | Size Range (Sq. Ft.) | Indicative Price Range | Applicable GST Rate |
|---|---|---|---|
| 2 BHK Flats | 1,001 – 1,379 sq. ft. | Starting at ₹1.30 Cr* | 5% (Non-Affordable) |
| 3 & 3.5 BHK Flats | 1,501 – 2,140 sq. ft. | ₹1.95 Cr – ₹2.77 Cr* | 5% (Non-Affordable) |
| 4 BHK Luxury Units | 2,200 – 2,735 sq. ft. | Up to ₹3.54 Cr* | 5% (Non-Affordable) |
*Base prices are calculated at around ₹12,987 per sq. ft. This does not include GST, stamp duty, and registration.
World-Class Amenities and Lifestyle Features
Prestige Falcon City Chennai has a huge 70,000 to 1,00,000 sq. ft. clubhouse with over 60 modern features that are easy to reach from all 22 towers:
- Recreation & Wellness: Swimming pools with a jacuzzi, rooftop and indoor gyms, yoga and exercise spaces, a sauna, a spa, a mini-theatre, and indoor courts for badminton, squash, and snooker.
- Rooftop & Outdoors: A stargazing deck, a rooftop party lawn, barbecue spots, pet parks, kids' play areas, and jogging tracks.
- Daily Conveniences: A grocery store, a pharmacy and first-aid clinic, ATM spaces, a salon, guest rooms, electric vehicle (EV) charging points, and 24/7 security with CCTV cameras.
Connectivity and Project Timeline
Located right next to Gleneagles Global Health City and near the 200 Feet Radial Road, the project is just a 5-minute drive from Sholinganallur and the upcoming Medavakkam Metro Station. Major IT parks like ELCOT SEZ, OMR, and Velachery are only 5 to 10 minutes away. The Chennai International Airport is a quick 30-minute drive (14 km). The project will have its pre-launch in December 2026. It will take about 4.5 years to build, and buyers can expect to get their homes by mid-to-late 2031.
Frequently Asked Questions (FAQs)
1. What is the exact GST rate applicable when booking a flat in Prestige Falcon City Chennai?
Since the flats at Prestige Falcon City Chennai start at ₹1.30 Crore and are bigger than 60 sq. meters, they fall under the luxury housing group. You will pay a flat 5% GST without Input Tax Credit.
2. Is GST charged on the land value of an under-construction apartment in Chennai?
No, there is no GST on land. The base tax rate on building a home is 7.5%, but the government cuts one-third of the value for the land cost. This brings the final GST rate down to 5% of the total property price.
3. How is GST paid when buying an under-construction flat at Prestige Falcon City Chennai?
You do not have to pay the full GST amount all at once. As the building goes up, you pay your home price in steps, and the 5% GST is added in small parts to each payment.
4. Do ready-to-move-in flats in Chennai attract GST?
No. Once a project is fully built and gets its Completion Certificate (CC) or Occupancy Certificate (OC) from the Chennai Metropolitan Development Authority (CMDA), you do not have to pay any GST.
5. Are stamp duty and registration charges included in the 5% GST?
No. GST is a tax on building the flat. Stamp duty and registration fees are separate state taxes that you pay to the Tamil Nadu government to put the property legally in your name.
6. What are the unit sizes available at Prestige Falcon City Chennai?
The project offers spacious 2 BHK (1,001 – 1,379 sq. ft.), 3 & 3.5 BHK (1,501 – 2,140 sq. ft.), and 4 BHK (2,200 – 2,735 sq. ft.) luxury flats across 22 towers.
7. Does GST apply to additional charges like clubhouse membership and car parking?
Yes. Extra fees charged by the builder—like preferred location charges, clubhouse fees, and covered car parking—are counted as part of the construction service and also have GST added to them.