No OC, no keys: the certificate that also decides your GST
The Occupancy Certificate says the building is legally fit to live in — and its timing directly changes what you pay in GST. Here is what to demand and when.
For buyers being offered possession, and anyone timing a purchase around the OC.
One number, never sold.
The 30-second version
The OC certifies the building is legally fit to occupy. The CC certifies construction is complete per the approved plans.
Taking possession without an OC is risky and expensive. No OC means the building is technically unauthorised, banks hesitate, and resale is harder. Obtaining it is the promoter's duty, not yours.
What to do
- 1
For a ready property: demand the OC/CC before paying the balance or taking keys
Not after. Once you have taken possession, your leverage drops sharply.
- 2
Time your purchase around the OC if you can
Under-construction attracts 5% GST (1% for affordable housing, with no input tax credit). A ready property where the OC has been received attracts 0%. Buying one day after the OC is issued rather than before can therefore save 5% of the price — roughly ₹5 lakh on a ₹1 crore flat, for the same flat. The rate hinges on OC timing and property type, so confirm your own case with a CA.
The red flag
Possession offered without an OC — 'move in now, OC aa jayega'. Living in a building with no OC means no legal occupancy and trouble at resale. A part-OC covering only some towers is not an OC for your tower: check which units it actually covers.
Not legal or tax advice
General information to help you ask the right questions — not legal or tax advice. Rules, rates and procedures vary by state, property type and date. Confirm your specific case with an independent property lawyer and, for tax, a chartered accountant before you pay anything.
Sources & citations›
- GST: under-construction 5% (1% affordable, no input tax credit) vs ready-with-OC 0% — a ~₹5 lakh difference on a ₹1 crore flat. Rate depends on OC timing and property type; confirm with a CA.
- The OC certifies legal fitness to occupy; the CC certifies completion per approved plans.
Being offered possession without an OC?
villow confirms OC and RERA status up front on every listing — and your number is never sold to a wall of brokers.
Talk to a Villow advisor
Name and a number — that's all. No PAN, no salary slips.
Why villow
The buyer is the customer here — not the product.
- Only VERIFIED listings — title, RERA and approvals checked up front.
- Your number goes to ONE in-house team. Never sold to a wall of brokers.
- Builders pay us, never you. Zero brokerage, no kickback steering advice.
No number-for-price gates. Read it all, decide for yourself.
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