Stamp Duty, Registration and GST on a Flat in Hyderabad
The price in a builder's brochure is only part of what you pay. On a ₹1 crore flat in Hyderabad, government charges come to about 7.5% of the price for a ready home and about 12.5% for one still under construction, before parking, legal fees and deposits.
The rates below were checked against official sources in October 2026. Telangana changes them by government order, so confirm them before you sign.
Stamp duty
Stamp duty is a state tax on the sale deed, and the buyer pays it. In Telangana a sale deed is charged at 5.5% of the value under Article 47-A of Schedule I-A to the Indian Stamp Act, 1899, as it applies in the state.
The 5.5% rate was set by G.O.Ms.No.59 of the Revenue (Registration) Department, dated 20 July 2021, and has applied since 22 July 2021. Before that the duty on a sale deed was 4%.
The department's duty and fee tables give no lower rate for women or for joint owners. The same percentages apply whoever is named on the deed.
Transfer duty
On top of stamp duty, the sub-registrar collects transfer duty for the local body. Government orders issued in April 2013 under the Hyderabad Municipal Corporation Act, 1955 and the municipalities law fixed it at 1.5% of value in municipal corporation and municipal areas. One of those orders applies the 1.5% rate specifically to sale deeds of flats and apartments.
The department's ready reckoner lists the same split for a sale deed outside gram panchayat areas: 5.5% stamp duty and 1.5% transfer duty. Unlike the surcharges in some states, transfer duty here is a percentage of the property value, not of the stamp duty.
In gram panchayat areas the ready reckoner shows no transfer duty. The registration fee is higher there instead, as the next section explains.
Registration fee
The registration fee on a sale deed is 0.5% of value outside gram panchayat areas and 2% inside them. The fee table, notified under section 78 of the Registration Act, 1908 and in force since 2 September 2021, sets no upper limit for sale deeds. The fee is worked out on the same value used for stamp duty.
So a sale deed costs 7.5% of value in all, whether the flat is inside city limits (5.5% + 1.5% + 0.5%) or in a gram panchayat (5.5% + 2%).
The department also levies user charges of ₹500 for a document of up to 15 sheets and ₹1,000 for a longer one.
Market value: the minimum value
Duty, transfer duty and the registration fee are all charged on the higher of the price in the deed and the market value fixed by the department. If the department's value for your flat is above the price you agreed, you pay on the department's value.
The department's portal says market values were revised from 5 June 2026. If you priced a flat before that date, check the current value again. You can look up values for a locality with the Market Value Search on the same portal, or ask the sub-registrar's office for a market value certificate.
Agreements signed before the sale deed
Many buyers of under-construction flats sign an agreement of sale with the builder long before the sale deed. If that agreement is registered, it carries its own duty under the 2021 order:
| Document | Stamp duty | Adjusted against the sale deed? |
|---|---|---|
| Agreement of sale without possession | 0.5% | No |
| Agreement of sale with possession | 5.5% | Yes, in full |
| Agreement of sale-cum-general power of attorney | 6.5% | 5.5% is adjusted, 1% is not |
| Construction or development agreement | 0.5% | No |
A registered agreement to sell also attracts a registration fee of 0.5%, with a minimum of ₹5,000 and a maximum of ₹50,000. On a ₹1 crore flat, registering an agreement without possession costs ₹50,000 in stamp duty that is not adjusted later, plus a registration fee of up to ₹50,000.
GST: under construction and ready
GST applies to the construction service while a flat is being built. Under Notification 03/2019-Central Tax (Rate) and the GST Council's FAQ for the real estate sector, 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 rates apply to the full amount charged, and they already allow for the land share of the price. Hyderabad is on the notification's list of metropolitan cities, so a flat counts as affordable only if its carpet area is no more than 60 square metres and the gross amount charged is no more than ₹45 lakh. The 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 will apply to the balance.
These rates date from 2019 and still apply. The GST rate changes that took effect on 22 September 2025 touched only three works contract entries in construction, and the GST Council's meeting on 8 October 2026 made no change for homes.
Other charges to budget for
- Parking and club membership. These may be priced separately. For tax deduction purposes, the Income-tax Act, 2025 counts club membership, car parking, electricity or water facility fees, maintenance and similar charges as part of the price.
- Maintenance deposits. The agreement for sale sets maintenance deposits, corpus funds and utility charges. Ask what each amount is for and who will hold it.
- Legal fees. Many buyers pay a lawyer to check title, approvals and the agreement. Fees vary.
- Encumbrance certificate. Banks and lawyers usually want one. The department charges ₹500 for a search covering up to 30 years and ₹1,000 for a longer period, and ₹500 for a certified copy of a document.
- 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. From 1 April 2026 this is deposited through Form 141, which replaced Form 26QB. On ₹1 crore that is ₹1 lakh. It comes out of the payment to the builder, 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 municipal limits rather than a gram panchayat, a market value that is not higher than the price, and no separately registered agreement of sale.
| Charge | Basis | Under construction | Ready, after completion certificate |
|---|---|---|---|
| GST | 5% of price | ₹5,00,000 | Nil |
| Stamp duty | 5.5% of value | ₹5,50,000 | ₹5,50,000 |
| Transfer duty | 1.5% of value | ₹1,50,000 | ₹1,50,000 |
| Registration fee | 0.5% of value | ₹50,000 | ₹50,000 |
| Total | ₹12,50,000 | ₹7,50,000 | |
| As a share of price | 12.5% | 7.5% |
User charges of ₹500 to ₹1,000 per document are extra.
Before you rely on these figures
- Confirm the duty, transfer duty and fee for your exact property with the sub-registrar or the Registration and Stamps Department's portal, which has a duty calculator and the market value search.
- Ask your lawyer which documents will be registered, and when, so you do not pay agreement duty that is never credited.
- This is general information, not tax or legal advice. A chartered accountant or lawyer can confirm how these charges apply to you.
Key points
- A sale deed in Telangana costs 7.5% of value: 5.5% stamp duty, 1.5% transfer duty and a 0.5% registration fee inside city limits, or 5.5% duty and a 2% fee in gram panchayats.
- Everything is charged on the higher of the price and the department's market value, which was revised from 5 June 2026.
- There is no concession for women or joint owners.
- 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 ₹12.5 lakh under construction and ₹7.5 lakh when ready.
Sources
- https://registration.telangana.gov.in/StampFees.htm
- https://registration.telangana.gov.in/readyReckoner.htm
- https://registration.telangana.gov.in/RegistrationFees.htm
- https://registration.telangana.gov.in/FeesRevision.htm
- https://registration.telangana.gov.in/GOMNo_150_06042013.htm
- https://registration.telangana.gov.in/
- 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/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf
- https://www.incometaxindia.gov.in/documents/d/guest/fn-141
- https://www.incometaxindia.gov.in/w/income-tax-act-2025-comes-into-force-from-1st-april-2026
- https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13156
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.
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