--- title: "Popcorn New GST Rate 2026: 5% Rate on Popcorn, Caramel & Salted" description: "New GST rate on popcorn in 2026 is 5% uniformly on all types including salted and caramel popcorn. Busy makes GST compliance easy with automatic rate applicatio" canonical: "https://busy.in/gst-rates/commercial-property/" author: "Hitesh Aggarwal" published: "2025-05-19T09:33:46.000Z" category: "GST Rates" --- - Under-construction commercial property may attract **5% without ITC or an effective 12% with ITC**, depending on the type of real estate project. - **Completed commercial property** is generally not subject to GST after the Completion Certificate/first occupation conditions are met. - **Commercial rent or lease** generally attracts **18% GST**. - In certain cases, commercial rent paid to an **unregistered landlord** is taxable under **RCM**. - ITC on commercial property expenses depends on the **transaction type and applicable GST rules**. # New GST Rate on Commercial Property Sales and Leasing Whether you’re buying a shop, renting office space, or leasing a warehouse, understanding the [**GST**](https://busy.in/gst/) implications is crucial. Unlike residential properties, commercial properties are fully taxable under GST. This guide explains the **gst rate on commercial property**, its impact on buying, renting, and leasing, and how it differs from residential spaces. ## Is GST Applicable on Commercial Property? Yes. Under GST, the sale or lease of commercial properties such as shops, offices, showrooms, warehouses, and commercial complexes is taxable. However, the **gst rate on commercial property** depends on whether the unit is under construction or ready-to-move. ## **New GST Rate on Commercial Property in India** GST on under-construction commercial property depends on the type of real estate project. These rates were **not changed from 22 September 2025**. ### **New GST Rate Table** | Property Type | New GST Rate | Condition | | --- | --- | --- | | Commercial property in an RREP | **5%** | Without Input Tax Credit (ITC) | | Commercial property in a REP other than an RREP | **Effective 12%** | With Input Tax Credit (ITC) allowed | | Ready-to-move commercial property | **GST not applicable** | If the entire consideration is received after Completion Certificate (CC) or first occupation, whichever is earlier | ## **Old GST Rate for Commercial Property Sales** ### **(Old GST Rates – Applicable Until 21st September)** | Property Type | New GST Rate | Condition | | --- | --- | --- | | Commercial property in an RREP | **5%** | Without Input Tax Credit (ITC) | | Commercial property in a REP other than an RREP | **Effective 12%** | With Input Tax Credit (ITC) allowed | | Ready-to-move commercial property | **GST not applicable** | If the entire consideration is received after Completion Certificate (CC) or first occupation, whichever is earlier | **Note:** These GST rates were already applicable before **22 September 2025** and continued thereafter. There was no September 2025 GST rate change for these commercial property sales. ## New GST on Commercial Property Leasing | Type of Lease | New GST Rate | | --- | --- | | Office space, shops, warehouses | **18%** | | Long-term lease with upfront premium (general cases) | **18%** | | Commercial land lease (business use) | **18%** | **Note:** Upfront premium for a **long-term lease of 30 years or more** of specified industrial plots or plots for development of infrastructure for financial business may be **exempt from GST** when the prescribed conditions for the lessor, lessee and property are satisfied. Live Demo Available Today ## Create Rent And Booking Invoices In Your Own Format Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## Old GST on Commercial Property Leasing | Type of Lease | Old GST Rate | | --- | --- | | Office space, shops, warehouses | **18%** | | Long-term lease with upfront premium (general cases) | **18%** | | Commercial land lease (business use) | **18%** | **Note:** Even before **22 September 2025**, upfront premium for certain qualifying **long-term leases of 30 years or more** of specified industrial plots or infrastructure-related plots could be exempt from GST, subject to prescribed conditions. ## **Input Tax Credit on Commercial Properties** - Construction-related services, subject to applicable ITC restrictions - Monthly commercial rent paid with GST for business use - Interior or fit-out expenses, where ITC is not restricted under GST rules - Maintenance and repair charges, if taxed and otherwise eligible Businesses registered under GST can **claim eligible Input Tax Credit** on commercial property-related expenses, subject to the restrictions under GST law. ## **GST Registration Requirement for Landlords** - Registration is generally required if **aggregate turnover exceeds ₹20 lakh annually** (₹10 lakh in specified states) - Registered landlords generally charge and pay **18% GST** on taxable commercial rent - In specified cases where an **unregistered landlord rents commercial property to a registered person, GST is payable by the recipient under RCM** - Issue proper tax invoices using the applicable **SAC under 9972** - File applicable **GST returns** as per the prescribed filing frequency ## Special Case: Mixed-Use Buildings If a building has both residential and commercial units, GST is charged only on the commercial portion. Residential units sold after receiving a completion certificate are exempt, while commercial units are fully taxable. ## Conclusion Understanding the **gst on commercial property in india** helps landlords, investors, and tenants make informed decisions and remain tax-compliant. Whether you’re buying, leasing, or renting, GST must be considered in your cost planning. ## About the author **Hitesh Aggarwal** As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience. ## Frequently asked questions ### What is the GST rate on commercial property sales in India? Under-construction commercial property generally attracts 5% GST without ITC in an RREP and an effective 12% GST with ITC in a REP other than an RREP. No GST is generally applicable if the entire consideration is received after the Completion Certificate or first occupation, whichever is earlier. ### What is the GST rate for commercial property leasing? Renting commercial property attracts **18%** GST. ### Can businesses claim ITC on commercial rent or property purchases? Yes, Input Tax Credit is available on GST paid for business-use properties. ### Do landlords need GST registration for commercial rentals? Yes, if annual rent exceeds ₹20 lakh, GST registration is mandatory. ### Is GST applicable on ready-to-move commercial properties? No, GST is not applicable if the Completion Certificate is issued before the sale. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)