RERA, GST & TDS: The 2025 Compliance Cheatsheet for Brokers
The rules that actually matter — registration, commissions, taxation, and the 5 mistakes that get brokers fined.
Real estate broking in India is now a regulated profession. Operating without compliance can mean fines up to ₹10L or being barred from RERA portals. Here's what you actually need in 2025.
RERA Agent Registration: Mandatory in every state for anyone facilitating sale of RERA-registered projects. Renewal every 5 years. Fees vary by state (₹10K–25K typical).
GST on Brokerage: Charged at 18% on commission if your annual turnover crosses ₹20L (₹10L in some NE states). Register, file monthly GSTR-1 and GSTR-3B.
TDS on Property: Buyer must deduct 1% TDS u/s 194-IA if property value exceeds ₹50L. As broker, advise your buyer — failing this lands them in trouble, not you, but it kills closings.
Capital Gains for Sellers: Brief sellers on LTCG (24-month holding for property) at 12.5% post-Budget 2024. Reinvestment in another residential property (Sec 54) or 54EC bonds saves tax.
Top 5 broker mistakes that trigger penalties: (1) Advertising a project without RERA number, (2) Collecting buyer money in personal account, (3) Not maintaining a deal register, (4) Missing GST filings, (5) Promising returns or guaranteed appreciation in writing.
Simple compliance stack: Register with RERA, get GSTIN, use a separate current account, keep a Google Sheet deal log, file GSTR monthly via a CA (₹1,500–3,000/month).
Doing this right doesn't just avoid fines — RERA-registered, GST-compliant brokers close 1.8x more premium deals because builders and buyers trust them with bigger tickets.