The real cost of a new flat: charges beyond the price
When a builder quotes a price for a new flat, that number is rarely what you finally pay. Government charges like stamp duty and registration, GST on under-construction homes, and a list of builder and society charges are added on top. Knowing these in advance helps you plan your down payment and home loan properly.
This guide explains these charges in simple terms for buyers in Maharashtra, including our areas: Virar, Vasai, Nallasopara, Naigaon, Mira Road, Dahisar and Borivali. Rates can change, so always confirm the exact amount for your property before you pay.
1. Stamp duty in Maharashtra
Stamp duty is a tax paid to the state government when your agreement for sale or sale deed is executed. It is governed by the Maharashtra Stamp Act, 1958.
How much is it?
- Base rate: for property within a municipal corporation area, Article 25 of the Maharashtra Stamp Act sets stamp duty at 5% of the market value.
- Metro cess: an additional 1% applies in areas where it has been notified, including Mumbai. In Mumbai (BMC) areas such as Dahisar and Borivali, the total is therefore commonly 6%.
- Other municipal corporations: in some corporations outside Mumbai, such as Mira-Bhayandar, a further 1% surcharge is also collected, so the total is commonly 7%. The exact total for Vasai-Virar and other areas depends on the cess and surcharge notified there.
Concession for women buyers
Since 1 April 2021, Maharashtra has given a 1% stamp duty concession on residential property bought by women. Check the conditions that apply, especially for joint purchases, before you register.
On what value?
Stamp duty is charged on the higher of your agreement value and the government’s ready reckoner (market) value for that property. If your agreement value is lower than the ready reckoner value, duty is calculated on the ready reckoner value.
2. Registration fee
Your agreement must be registered at the sub-registrar’s office. The registration fee in Maharashtra is 1% of the property value, subject to a maximum of ₹30,000. So for most new flats in our areas, the registration fee works out to ₹30,000.
A simple illustration
Suppose a flat has an agreement value of ₹50 lakh, the ready reckoner value is lower, and the total stamp duty rate for that location is 7%:
- Stamp duty: 7% of ₹50 lakh = ₹3.5 lakh
- Registration fee: ₹30,000 (the maximum)
- Total government charges: ₹3.8 lakh, on top of the flat price
This is only an example to show the method. Your actual rate depends on the property’s location and your situation.
3. GST on under-construction flats
If you buy a flat that is still under construction, GST is usually charged on the instalments you pay to the builder. Homes that qualify as “affordable housing” under GST rules attract a lower rate than other homes. A completed flat sold after the occupancy certificate (OC) is issued generally does not attract GST. Ask the builder to show GST separately in the cost sheet.
4. Builder and society charges
These vary a lot from project to project. Ask for each one in writing:
- Parking: covered or stilt parking may be charged separately.
- Society formation and share money: for setting up the housing society.
- Legal charges: for preparing the agreement and documents.
- Advance maintenance: often collected at possession for a fixed number of months.
- Corpus or sinking fund: a one-time contribution in some projects.
- Electricity meter and water connection: deposits and connection charges.
- Floor rise or view premium: higher floors or special views may cost more.
- Club house or amenity charges: in projects with these facilities.
5. Home loan costs
If you take a home loan, budget for the processing fee, any legal and technical valuation charges, and stamp duty on the loan agreement where applicable. Remember that banks usually fund only part of the property value, so you need your own money for the down payment and most of the extra charges above.
6. Other costs people forget
- Interiors, furniture and appliances.
- Shifting costs.
- Rent you continue paying while an under-construction flat is being built.
- Property tax once you take possession.
How to avoid surprises
- Ask the builder for a full written cost sheet before you pay any booking amount.
- Check the stamp duty rate for your exact location on the official IGR Maharashtra website (igrmaharashtra.gov.in).
- Check the project’s MahaRERA registration on maharera.maharashtra.gov.in.
- Use the Hidden Charges calculator in our Smart Buyer Tools. Enter the quoted price, BHK type, status, loan percentage and parking charge to see an estimated real total cost.
Comparing projects? Browse new projects in Virar, Nallasopara, Naigaon, Mira Road, Dahisar and Borivali.
Frequently asked questions
What is the stamp duty rate in Maharashtra?
The base rate in municipal corporation areas is 5% of market value. With the 1% metro cess, the total is commonly 6% in Mumbai. In some other corporations, such as Mira-Bhayandar, an extra 1% surcharge makes it commonly 7%. Confirm the rate for your location on the IGR Maharashtra website.
What is the registration fee for a flat in Maharashtra?
1% of the property value, subject to a maximum of ₹30,000.
Do women get a stamp duty concession in Maharashtra?
Yes. Since 1 April 2021, women buying residential property get a 1% concession on stamp duty, subject to the conditions set by the government.
Is GST charged on a ready-to-move flat?
Generally no, if the flat is sold after the occupancy certificate is issued. GST usually applies to under-construction flats.
Is stamp duty calculated on the agreement value?
It is calculated on the higher of the agreement value and the ready reckoner value of the property.
Talk to BestHouz
Want help shortlisting? Call or WhatsApp us on 7498626832 or message us on WhatsApp. 0% brokerage for buyers. We are open Tuesday to Sunday, 10 AM to 8 PM (Monday closed), at Shop No 15, Vinay Darshan, Vinay Nagar, Mira Road East.