If you live in an apartment and pay more than ₹7,500 per month as maintenance charges, you might have to pay extra every month due to an 18% Goods and Services Tax (GST). This GST will be applicable on the entire amount, not just the portion above ₹7,500, but only if your housing society’s (RWA) annual income is more than ₹20 lakh. So, for example, if your monthly maintenance is ₹9,000, and your society earns more than ₹20 lakh in a year, you will be charged 18% GST on the full ₹9,000. That means ₹1,620 extra, making your monthly bill ₹10,620.
This rule is not new. The GST Council had earlier increased the exemption limit from ₹5,000 to ₹7,500 in January 2018 to provide relief to housing societies and residents. However, the exemption only applies if the society’s yearly income is ₹20 lakh or less. If the turnover crosses ₹20 lakh and maintenance crosses ₹7,500 per month per flat, then GST becomes applicable.
The Ministry of Finance has clarified that if a Resident Welfare Association’s (RWA’s) total income does not exceed ₹20 lakh in a financial year, it doesn’t have to register for GST or charge it from residents—even if some flat owners are paying more than ₹7,500 per month. It also explained that housing societies which do charge GST are eligible for Input Tax Credit (ITC). This means they can get refunds on the GST they pay while purchasing items like generators, water pumps, sanitary fittings, or while hiring repair and maintenance services. If these benefits are passed on to the residents, it could help reduce the overall burden.
For residents who own more than one flat, the ministry clarified that the ₹7,500 limit will be considered separately for each apartment. So, if someone owns two flats and pays ₹7,000 per flat, GST will not be charged because each unit falls below the threshold.
In summary, if your society is earning more than ₹20 lakh per year and you’re paying more than ₹7,500 monthly in maintenance, you will likely see an increase in your bill due to GST. Residents are advised to check whether their RWA is GST-registered, confirm the annual income of their society, and discuss whether the society is passing on any tax credit benefits to residents. This will help you understand how much extra you may be paying and if there’s a way to reduce it.
