It is generally legal to charge GST on car parking separately. Tax rulings have clearly clarified that parking is typically considered separately from the flat for GST purposes. As a result, an 18% GST charge on a separate parking queue item is normally permissible and may not constitute an overcharge.
However, you should question whether the builder may legally sell the parking place to you. Property ownership regulations treat open and stilt parking spaces differently. Thus, GST and parking ownership rules should be considered separately.
Is 18% GST on Car Parking Actually Correct?
Yes, 18% GST on car parking is legal under Indian GST legislation. Several Authority for Advance Ruling (AAR) decisions, notably a 2023 West Bengal case, have held that parking is a separate service and not included in the flat's construction.
Parking can be used or purchased separately. Hence, it is normally taxed at 18% GST under SAC 9973. This applies to both open and stilt parking, and it may also apply if parking is charged after the flat has been sold. As a result, these orders typically require an 18% GST fee on parking.
When Should You Actually Question the Parking Charge?
The main concern is not the GST rate, but whether the builder is legally allowed to charge for the parking spot.
The Supreme Court's 2010 decision in Nahalchand Laloochand Pvt. Ltd. vs. Panchali Co-operative Housing Society said that open and stilt parking are common facilities that cannot be sold individually to flat buyers.
Their costs should be shared by unit owners rather than levied as a separate sale fee.
Check your agreement. If it states that parking is being sold to you rather than granting you a right to use, you may question this.
A fully enclosed garage with walls and a lockable door may be handled differently and sold separately.
Enquire with the builder about whether the price is for the right to use or ownership.
If the clause is unclear, you should have a lawyer analyse it under your state's RERA guidelines. I hope this helps.
Hire a NoBroker Property Lawyer to Review Your Parking Clause at Affordable Rate.
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
The builder is billing GST on my parking space as a separate line item from the flat price. Is that standard practice, or something I should be questioning?
B 44 Subramanian
19 Views
1
20 days
2026-08-13T20:32:26+00:00 2026-08-13T20:32:54+00:00Comment
Share