The price on the brochure is rarely the price you pay. Between GST, government charges and the extras builders quote separately, a Bengaluru flat usually costs 10% to 20% more than its headline price. Buyers who find this out at the registration office end up raiding the savings they meant for interiors. Here is every cost to ask about, before you book.
1. GST (under-construction homes)
Under-construction homes attract GST of 5% on most homes, or 1% on affordable housing, charged on the builder's invoice. A completed home sold after the occupancy certificate (OC) is issued attracts no GST, which is one reason ready homes cost less than their price difference suggests. Some extra charges in the cost sheet can carry GST too, so ask for a cost sheet that shows it line by line.
2. Stamp duty and registration
For a property above ₹45 lakh, stamp duty in Karnataka is 5% of the value, plus a surcharge and cess of roughly 0.5% to 0.6% in urban areas. Registration adds 1%. Duty is charged on the higher of your agreement value and the government guidance value. Our stamp duty guide has worked examples at ₹60 lakh, ₹1 Cr and ₹2 Cr.
3. Car parking
Many projects charge for a covered car park separately, and a second slot costs extra. Some quote all-inclusive prices that already cover it. Always ask whether the quoted price includes parking.
4. Club house and amenities
A one-time club membership or amenities charge is common in gated projects. Check what it covers and whether it is refundable.
5. Maintenance deposit and corpus fund
Builders usually collect one or two years of maintenance in advance at handover, plus a one-time corpus fund that the owners' association later uses for major repairs. Both are typically calculated per sq.ft of super built-up area, so they scale with the size of your home.
6. Utility connections
Charges for the electricity connection, water and sewerage connections, and sometimes generator backup and piped gas, may appear as separate line items. Ask for them upfront.
7. Floor rise and preferred location charges
Higher floors, corner units, park or lake views and east-facing homes often carry a premium per sq.ft. These preferred location charges can move the final price more than buyers expect.
8. Legal, documentation and loan charges
Budget for the agreement drafting and documentation fee some builders charge, an independent lawyer to review the title and agreement, and the home loan processing fee if you borrow.
9. TDS (not extra, but easy to miss)
For a property of ₹50 lakh or more, you must deduct 1% TDS from the payments to the builder and deposit it with the income tax department. It is part of the price, but missing it leads to interest and penalties.
A worked example: a ₹1 Cr flat
| Item | Approximate amount |
|---|---|
| Agreement value | ₹1,00,00,000 |
| GST at 5% (under construction) | ₹5,00,000 |
| Stamp duty, surcharge and cess (about 5.6%) | ₹5,60,000 |
| Registration (1%) | ₹1,00,000 |
| Car park, club, deposits and connections (varies) | ₹3,00,000 to ₹8,00,000 |
| All in | about ₹1.15 Cr to ₹1.2 Cr |
Planning figures only. Rates are set by the government and builders and do change; verify each line on the project's cost sheet at booking.
How to protect yourself
- Ask for a written, all-inclusive cost sheet before you pay anything.
- Compare projects on the all-in cost of the same size home, not the starting price.
- Keep 7% to 8% of the price in cash for registration day, over and above your down payment.
- Read the agreement for escalation clauses and charges added at handover.
Shortlisting by budget? See flats under ₹1 Cr and flats from ₹1 to 2 Cr, or send us a project name on WhatsApp and we will run the complete cost sheet for you.
Frequently asked questions
What is the GST on buying a flat in Bengaluru?
Under-construction homes attract GST of 5% on most homes and 1% on affordable housing, without input tax credit. A completed home sold after the occupancy certificate is issued attracts no GST.
How much are stamp duty and registration in Bengaluru?
For a property above ₹45 lakh, stamp duty is 5% plus a surcharge and cess of roughly 0.5% to 0.6% in urban areas, and registration is 1%. Together, plan for about 6.5% to 7% of the property value.
Is car parking charged separately?
Often, yes. Many projects quote covered car parking as a separate charge, and some include it in an all-inclusive price. Ask whether the price you are quoted includes it.
Does a home loan cover stamp duty and registration?
Usually not. Most lenders finance the agreement value, so stamp duty, registration and many of the builder's extra charges come out of your own pocket.
What is TDS on property purchase?
When a property costs ₹50 lakh or more, the buyer deducts 1% TDS from the payment and deposits it with the income tax department. It is part of the price, not an extra cost, but you must file it on time.
