When you buy a flat in Bandra West, Juhu or Andheri West, the agreement value is not the full cost. The government charges stamp duty and a registration fee. On an under-construction flat you also pay GST, and the developer collects possession charges and advance maintenance. Here is what each one is, and what it added up to on a real cost sheet.
1. Stamp duty
Stamp duty is the tax you pay to register the purchase in your name. In Mumbai it is 6% of the property value: 5% stamp duty plus a 1% metro cess.
Stamp duty is calculated on the higher of the agreement value or the government's Ready Reckoner value for that location. If the agreed price is below the Ready Reckoner value, duty is still charged on the Ready Reckoner value. You can see the current rates for our area in our post on Ready Reckoner Rates 2026-27: Bandra West to Andheri West.
2. The 1% concession for women buyers
Maharashtra gives a 1% stamp duty concession when a residential home is bought by a woman. Under the Revenue and Forest Department's order of 31 March 2021, the concession applies where one or more women are the only buyers. So:
- One woman buying alone: concession applies.
- Two or more women buying together (for example a mother and daughter, or two sisters): concession applies.
- A woman buying jointly with a man (for example husband and wife): concession does not apply, and the full rate is charged.
The concession covers residential units such as a flat, bungalow, row house or independent house. It does not apply to commercial property.
3. Registration fee
The registration fee is 1% of the property value, capped at ₹30,000. For almost every flat in Bandra West to Andheri West the fee is simply ₹30,000.
4. GST: only on under-construction property
- Under-construction flat: 5% GST, with no input tax credit.
- Affordable housing: 1% GST. In Mumbai this applies only where the carpet area is up to 60 sq m and the price is not more than ₹45 lakh, so it rarely applies in our area.
- Ready flat with a completion certificate, or a resale flat: no GST. Under GST law, the sale of a completed building is not a taxable supply.
5. Possession charges
Developers usually collect a separate set of charges at possession. These are not part of the agreement value, so they are easy to miss when comparing prices. A typical cost sheet includes:
- Legal charges
- Electricity transformer, electric meter, water meter and gas connection
- Development or infrastructure charges
- Club house charges
- Society share application and entrance fee
- Corpus fund for the society
These vary widely from project to project. Always ask for the full cost sheet, not just the agreement value.
6. Maintenance paid in advance
Many developers collect maintenance in advance at possession, often for 12 months or more, plus GST. In our experience, maintenance in premium projects is around ₹12–15 per sq ft per month and in ultra-premium projects around ₹18–25 per sq ft per month, on carpet area. For a 1,275 sq ft home at ₹15, that is ₹19,125 a month, or ₹2,29,500 for 12 months before GST.
7. TDS: not an extra cost, but your responsibility
If the property costs ₹50 lakh or more, the buyer must deduct 1% TDS from each payment to the seller and deposit it with the Income Tax Department. It is part of the price, not an addition, but it is the buyer's job to deduct and deposit it on time.
A real example: 3 BHK, 1,275 sq ft carpet, under construction
Here is how the costs added up on an actual developer cost sheet for a 3 BHK with 2 car parks.
| CostAmount | |
| Agreement value | ₹4,33,50,000 |
| Stamp duty (6%) | ₹26,01,000 |
| Registration fee | ₹30,000 |
| GST (5%) | ₹21,67,500 |
| Possession charges (legal, meters and connections, infrastructure, club house, society share and corpus fund) | ₹15,55,600 |
| Advance maintenance (₹15 per sq ft for 12 months, before GST) | ₹2,29,500 |
| Total over the agreement value | ₹65,83,600 (about 15%) |
If the buyers were only women, the 1% stamp duty concession would save ₹4,33,500 here. On a ready flat with a completion certificate there would be no GST, which would save ₹21,67,500. TDS of 1% is deducted from the price, not added to it.
Planning a purchase?
At Khojmaster we work out the full cost of every option for you before you decide, including possession charges and the difference between under-construction and ready homes. And there is zero brokerage on new project purchases.
Talk to Dhaval on WhatsApp · +91 93210 58605 · info@khojmaster.com
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Khojmaster Property Consultants, MahaRERA Reg. No. A51800047853. This article is for general information and is not tax or legal advice. Sources: Government of Maharashtra, Revenue and Forest Department order dated 31 March 2021 (women's concession); GST Council; Income Tax Department. Maintenance ranges are based on Khojmaster's experience in Bandra West to Andheri West. Confirm current rates with the Department of Registration and Stamps, Maharashtra, or your CA before you transact.