Section 5 - Registration & GST

Section 5 – Registration & GST Charges Explained

Title: Understanding Registration & GST Charges When Buying a Home
SEO Keywords: Registration charges Telangana, GST on property, stamp duty in Hyderabad, home registration cost, property tax Hyderabad

Intro 

Many first-time buyers are surprised by the extra costs that come after agreeing on the property price. Registration fees, stamp duty, and GST can add a significant amount to your budget. Knowing how these charges work — and when they apply — will help you plan better and avoid last-minute financial stress.

1. Stamp Duty in Telangana

• Applicable On: Agreement value or market value (whichever is higher)
  
  

• Rate:
  
  

  • 4% Stamp Duty
    
    

  • 0.5% Registration Fee
    
    

  • 1.5% Transfer Duty (municipal areas)
    
    

• Example: For a ₹1 crore property, expect around ₹6–7 lakhs in total registration costs.
  
  

More infor : https://registration.telangana.gov.in/registrationFees.htm

2. GST Applicability

• Under-Construction Properties:
  
  

  • 5% GST (no ITC benefit) for residential units
    
    

  • 1% GST for affordable housing (up to ₹45 lakh and size limits apply)
    
    

• Ready-to-Move-In Properties:
  
  

  • No GST applicable
    
    

3. Other Charges to Expect

• Corpus Fund / Maintenance Deposit: Paid upfront to builder for future upkeep of amenities.
  
  

• Legal Documentation Fee: Charged by builder or legal advisor for agreement preparation.
  
  

• Clubhouse / Amenity Charges: Sometimes billed separately.
  
  

4. How to Reduce Costs

• Buy ready-to-move-in units to avoid GST.
  
  

• Watch for government concessions (festive period stamp duty rebates).
  
  

• Negotiate with the builder to absorb part of these charges during deal closure.
  
  

✅ Charges Estimation Checklist (Downloadable PDF suggestion)

1. Stamp Duty % confirmed
   
   

2. Registration fee calculated
   
   

3. GST applicability checked
   
   

4. Other charges listed
   
   

5. Total budget updated
   
   

What is Mutation in Hyderabad?

Mutation is the process of updating the ownership details in the municipal and revenue records after purchasing a property.

• In GHMC limits → GHMC records get updated (for property tax billing).
  
  

• In HMDA / Gram Panchayat areas → local municipality or panchayat records are updated.
  
  

• In Revenue Department → name change is made in ROR 1B / Dharani portal.
  
  

2. Why Mutation is Important?

• Ensures you are recorded as the legal owner in government records.
  
  

• Allows payment of property tax in your name.
  
  

• Required for future resale or legal disputes.
  
  

• Helps in getting building permissions and utility connections.
  
  

3. Mutation Charges in Hyderabad

Mutation involves two types of charges:

A. GHMC / Municipality Mutation Fee

• Rate: 0.1% of the property value (as per the latest registration sale deed)
  
  

• Minimum Fee: ₹100
  
  

• Example:
  If property value in sale deed = ₹80,00,000
  Mutation Fee = 0.1% × ₹80,00,000 = ₹8,000
  
  

B. Revenue Department (Dharani) Mutation Charges

When mutation is done in Revenue Records (ROR 1B) through Dharani portal for land/plots:

• Fee: ₹200 to ₹300 per application (varies by district).
  
  

• Processing Charges: Usually ₹50–₹100 extra for eSeva / MeeSeva service.
  
  

C. Additional Costs

• Documentation & Application Charges: If you hire an advocate/agent, expect ₹1,000–₹3,000 service charge.
  
  

• Stamp Paper / Affidavit Costs: ₹100–₹200 (if required).
  
  

• Encumbrance Certificate (EC) Fee: ₹200 for obtaining EC before applying.
  
  

4. Documents Required for Mutation in Hyderabad

1. Registered Sale Deed (photocopy & original for verification)
   
   

2. Latest Property Tax Paid Receipt
   
   

3. Encumbrance Certificate (EC)
   
   

4. ID Proof & Address Proof of new owner
   
   

5. Application form (GHMC / Municipality / Dharani portal)
   
   

6. NOC from housing society (if applicable for apartments)
   
   

5. Timeframe

• GHMC Mutation: Usually 15–30 working days.
  
  

• Revenue Mutation (Dharani): 7–15 working days.
  
  

6. Important Notes

• Mutation is not proof of ownership — the sale deed is the legal ownership proof. Mutation only updates government records.
  
  

• Mutation must be done immediately after registration to avoid delays in tax billing and legal recognition.
  
  

• If the property is in a gated community, society records should also be updated along with GHMC/Dharani.
  
  

TDS on Property Purchase – Detailed Guide

1. Applicable Law

• Governed by Section 194-IA of the Income Tax Act, 1961.
  
  

• Effective from: 1st June 2013.
  
  

• Purpose: To track and collect tax on high-value property transactions.
  
  

2. When TDS Applies

• Applicable: When the property sale consideration is ₹50 lakh or more.
  
  

• Property Type: Land (other than agricultural land), building, or part of a building.
  
  

• Buyer’s Responsibility: Buyer must deduct TDS before making payment to the seller.
  
  

3. Rate of TDS

• 1% of the total sale consideration.
  
  

• Deducted at the time of payment (or at the time of giving credit to seller’s account, whichever is earlier).
  
  

4. Payment & Filing

• TDS must be deposited with the Government of India using Form 26QB (online) within 30 days from the end of the month in which deduction is made.
  
  

• TDS Certificate (Form 16B) must be issued by the buyer to the seller within 15 days from the due date of filing Form 26QB.
  
  

5. Example Calculation

• Sale Consideration: ₹80,00,000
  
  

• TDS @ 1%: ₹80,000 to be deducted by buyer.
  
  

• Buyer pays ₹79,20,000 to the seller and ₹80,000 to the government.
  
  

6. PAN Requirement

• PAN of both buyer and seller is mandatory.
  
  

• If the seller doesn’t provide a valid PAN, TDS rate increases to 20%.
  
  

7. Key Points

• No TDS if the property price is below ₹50 lakh.
  
  

• TDS applies on entire amount (not just amount above ₹50 lakh).
  
  

• Joint buyers/sellers → TDS applies proportionately based on their share.
  
  

• Non-compliance → Interest, penalty, and prosecution under IT Act.
  
  

8. Hyderabad-Specific Note

• Rule applies nationwide; Hyderabad buyers must also comply when registering properties above ₹50 lakh.
  
  

• TDS is separate from stamp duty, registration charges, GST, or mutation fees.