Sale brokerage is commonly a percentage of the deal value; rental brokerage is commonly a number of days or months of rent. GST at 18% applies to brokerage when the broker is registered.
Example
A sale and a rental in Mumbai
On a ₹1.2 crore resale flat in Powai, Mumbai, a broker charging 1% to each side earns ₹1,20,000 from the buyer and the same from the seller, plus 18% GST of ₹21,600 on each invoice if registered. On a ₹60,000-a-month rental in the same building, brokerage of one month’s rent from each side would be ₹60,000 plus GST.
Figures are illustrative, not market rates.
Across India
- Rental brokerage is commonly one month’s rent in Mumbai and Delhi NCR, and is sometimes charged as a fraction of a month elsewhere.
- New-project sales are usually paid by the builder to the channel partner, not by the buyer.
- Maharashtra’s registered agents must also follow MahaRERA’s rules on conduct and records.
Questions about Brokerage
Is GST charged on brokerage?
Yes, at 18% for real estate brokerage when the broker is registered for GST, as CGST plus SGST within a state or IGST across states. Unregistered brokers below the GST threshold do not charge it. The invoice should show GST separately.
Is TDS deducted on brokerage?
Business payers who are required to deduct TDS on commission must do so above the yearly threshold; individuals paying a broker for a personal purchase are generally outside that rule. Brokers should check Form 26AS for credits, and confirm the current rate with a chartered accountant.
When is brokerage payable?
Whenever the mandate or brokerage letter says — commonly on signing the agreement for sale or at registration for sales, and on signing the rental agreement for lets. Getting the trigger, amount and GST treatment in writing before the first viewing prevents disputes.
Sources
- CBIC — GST · accessed
- Maharashtra Real Estate Regulatory Authority (MahaRERA) · accessed
See also
Reviewed