Commercial shop purchase costs in Mumbai: what to budget beyond the price

The headline price of a shop is not what you pay. This guide sets out the main government charges on a purchase in Mumbai. Rates change; the sources below were checked on 24 September 2026. Confirm the figures for your transaction with the sub-registrar, your advocate or your chartered accountant before you commit. This is general information, not tax or legal advice.

Stamp duty. For property within municipal corporation limits in Maharashtra, including Mumbai, stamp duty on a conveyance is 6% (5% duty plus 1% metro cess). It is charged on the agreement value or the government ready reckoner value, whichever is higher. Sources: Inspector General of Registration, Maharashtra (igrmaharashtra.gov.in); ClearTax, "Stamp Duty and Registration Charges in Maharashtra", updated 2026. Some concessions reported for women buyers relate to residential property; do not assume they apply to a shop.

Registration fee. 1% of the property value, subject to a maximum of Rs 30,000. Source: Inspector General of Registration, Maharashtra. A small document handling fee per page is also payable.

GST on under-construction units. GST applies when you buy from a developer before the completion or occupation certificate is issued. It does not apply to a ready unit where the whole price is paid after completion, or to a resale. For commercial units in most projects the rate is 18% on the value after a one-third deduction for land, which works out to 12% of the agreement value, with the developer entitled to input tax credit. Sources: Notification No. 11/2017-Central Tax (Rate), as amended up to 1 April 2019 (gstcouncil.gov.in); GST Council FAQs on real estate, 14 May 2019. Where commercial units form a small part of a residential project, different rates can apply, so ask the developer for the rate and basis on their invoice.

TDS. If the consideration or the stamp duty value is Rs 50 lakh or more, the buyer must deduct 1% TDS from payments to a resident seller under section 194-IA of the Income-tax Act, on the higher of the two values, and deposit it with the government. Source: Income Tax Department, "TDS - Purchase of Immovable property" (incometaxindia.gov.in).

Worked example (assumptions stated). Agreement value Rs 1,00,00,000 for an under-construction shop in Mumbai; ready reckoner value lower than the agreement value; standard 12% effective GST applies. Stamp duty 6% = Rs 6,00,000. Registration = Rs 30,000 (cap). GST 12% = Rs 12,00,000. Total government charges about Rs 18,30,000 before document handling fees, legal fees, society or developer charges, and any brokerage. TDS of Rs 1,00,000 is deducted from the price you pay the seller, not added to it.

Not covered here: developer charges such as maintenance deposits, parking, infrastructure or legal fees vary by project and must be read from the agreement.