GST registration for real estate agents and property brokers

Types of brokerage income

• Commission from builders as a channel partner on new project sales
• Brokerage from buyers and sellers on resale flats, plots and shops
• Rental brokerage from landlords and tenants, residential or commercial
• Lease and site-search fees from companies looking for offices or warehouses
• Property management fees for collecting rent or maintaining a flat for an owner

Place of supply follows the property

Estate agent services are tied to immovable property, so the place of supply is where the property is. A Gurugram broker earning commission from a developer for a Noida project charges IGST, because the property is in Uttar Pradesh. The same broker selling a Gurugram flat charges CGST and SGST of Haryana. Agents working near state borders should check this on every deal.

RERA registration as an agent is a separate legal requirement and does not affect GST registration.

Timing and invoicing

Builders usually release commission once the buyer pays an agreed share or registers the agreement. Raise your invoice as soon as the commission falls due under your agreement. Tax is due on the invoice even if the payout is delayed. If a sale falls through and the commission is reversed, issue a credit note so your liability is reduced.

Sub-brokers you share commission with are your suppliers. If they are registered, their GST is your credit. Credit on cars used for site visits is generally blocked.

If you work as part of a brokerage firm and the firm bills the builder, the commission is the firm's turnover, not yours. Your share is then a payment from the firm, which may itself be a supply to the firm if you are an independent sub-broker.

Keeping records straight

Builders report your invoices through their GSTR-2B and will flag mismatches. Keep each deal's file with the property address, the buyer's name and the commission letter. A professional can register you, set up invoices that show the correct place of supply and handle quarterly or monthly returns.

Get it handled for you

Need GST registration done right the first time? Our chartered accountants prepare the documents, file the application and handle any query, so you do not have to visit the GST office. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.