New

Published on:

April 16, 2025

Udeetta Sarma

Blog |

Explore GST

GST FAQs

GST on Housing Society Maintenance Charges in India

The Goods and Services Tax in India, after being implemented from July 2017 onwards, had brought about major changes across all sectors in India, including the recently added residential housing societies.

Due to this sudden implementation of GST on housing society maintenance, many homeowners and Resident Welfare Associations (RWAs) are unsure about how these changes will impact their monthly charges.

This blog simplifies the entire subject, explaining when GST is applicable to maintenance charges, what rates apply, how exemptions work, and the steps societies must take to stay compliant.

What Is GST on Maintenance Charges?

The maintenance charges levied by Resident Welfare Associations (RWAs) are collected to provide services inside the society such as security, cleaning, lighting, repairs and upkeep of facilities. Such services are to be deemed as a type of “supply of service” and thus become liable for tax under GST.

GST Applicability Criteria

Dual Conditions for GST Levy

For GST to be applicable on maintenance charges, two specific conditions must be met:

Monthly Maintenance Charge per Member Exceeds ₹7,500
Annual Aggregate Turnover of the RWA Exceeds ₹20 Lakh

The RWA is only liable to register under GST and charge it on maintenance bill when both the criteria are met.

Examples for Clarity

If 30 Lakhs of monthly turnover is collected but at a monthly rate of Rs. 6000, GST is not applicable
If the yearly turnover collected is Rs. 18 Lakhs but with a monthly rate of Rs. 8000, GST is not applicable.
However, if the annual turnover is Rs. 35 Lakhs at Rs 9,000 per month, GST is applicable on the full Rs. 9,000

GST Rate on Maintenance Charges

The applicable GST rate on maintenance charges is 18%, which includes 9% Central GST (CGST) and 9% State GST (SGST).
If GST is applicable, the entire amount is taxed and not just the amount above Rs. 7,500

Madras High Court Controversy

Unexpectedly, in 2021 a Judgement by Madras High Court ruled GT shall be applied only on the amount exceeding Rs. 7,500 and NOT to the full amount. However, until 2025, the government will still consider GST on the whole amount once the respective criteria are met.

GST Registration Requirements for RWAs

If the annual turnover of the RWA exceeds ₹20 lakh, it must:

Register under GST
File monthly and annual returns
Charge 18% GST on maintenance bills
Issue GST-compliant invoices

RWAs that do not meet the ₹20 lakh turnover need not register, even if individual monthly charges exceed ₹7,500.

Input Tax Credit (ITC) for RWAs

RWAs registered under GST can claim Input Tax Credit (ITC) on various expenses related to society maintenance, including:

Capital goods like water pumps, gym equipment, and generators
Sanitary fittings like taps, pipes, and other hardware
Service charges from contractors, maintenance vendors, and repair services

This helps offset their GST liability and reduce overall costs.

Special Cases and Clarifications

Owning Multiple Flats

In case a person has as many as one than flat himself/herself in a society, whether GST is implement is consider based on each flat separately. So pay ₹6,000 for each of your two flats, and you remain under the ₹7,500 threshold—no GST.

Commercial Usage of Flats

Even if the flat is used for commercial purposes, the exemption remains as long as the owner is a member of the RWA. Usage doesn't affect GST liability.

Summary Table

Annual Turnover	Monthly Charge > ₹7,500	GST Required?
No	No	No
Yes	No	No
No	Yes	No
Yes	Yes	Yes

Impact on Residents

For Homeowners

1. If GST applies, you’ll notice an 18% tax on your monthly invoice

2. Your association needs to issue proper GST invoice

3. As a resident, you cannot claim any ITC

For Tenants

If you are paying the landlord maintenance charges, then they may load the GST element on to you

Compliance Tips for RWAs

1. Track Annual Collections
Estimate turnover to assess whether GST registration is required.

2. Use Accounting Software
Tools like ClearTax or MyGate make GST invoicing and return filing easier.

3. Claim ITC Smartly
Make sure you’re documenting expenses where you’re eligible for input credit.

4. Issue GST-Compliant Invoices
Include GSTIN, HSN Code, tax breakdowns, and total invoice value.

5. Hire a Tax Consultant
Given the complexity, professional help ensures compliance and cost savings.

Real-Life Concerns

Some RWAs, especially in large cities like Bangalore and Mumbai, are now facing audits due to non-compliance. Many societies that crossed the turnover threshold in FY 2023–24 were unaware they needed GST registration. The compliance burden has grown, especially with the increasing digitization and tracking of society accounts.

Key Takeaways

GST is not applicable unless both the ₹7,500 per month and ₹20 lakh turnover conditions are met.
If applicable, GST is charged on the entire monthly fee, not just the excess.
RWAs can benefit by claiming ITC and managing GST effectively.
Homeowners and tenants must review invoices carefully and ask RWAs for transparency.

Be it your business or managing GST for your housing society, Swipe is a versatile GST billing tool that helps you stay compliant and avoid legal problems in the future

FAQs

What is the GST rate on housing society maintenance?

The GST rate on housing society maintenance is 18%, where 9% of CSGT and 9% of SGST

Is GST applicable if I pay ₹8,000 per month, but the RWA's turnover is ₹15 lakh?

No, GST is only applicable if the annual turnover exceeds Rs. 20 Lakhs and Rs. 7,500 monthly. Both these criteria should be met for GST to be applicable.

Can RWAs claim GST input credits?

Yes, GST input credits can be claimed by RWAs on goods and services that are eligible for it.

Do tenants have to pay GST on maintenance?

Yes, tenants might have to pay maintenance on GST as the landlords pass the extra cost on to the tenants.

Is GST charged on each flat owned by a single person?

Yes, if the threshold of Rs. 7,500 is exceeded, each flat is treated separately.

Featured Posts

GST Rates and HSN Code 306 for Crustaceans

GST Rates and HSN Code for Sheets for Veneering Plywood: Complete Guide

Buyer Not Responsible for Non-Payment of GST by Seller

GST Rates and SAC Code 9995 for Membership Organization Services

Scope and Ambit of the Term 'Proceeding' Under GST Law: A Detailed Analysis

HSN Code & GST Rate on Agriculture Equipment

Section 10 of Income Tax (IT) Act: Exemptions and Allowances

GST Rates & SAC Code 9986 for Agriculture Support Services

Featured Posts

Related Blog Posts

Time Limit for Issue of Invoice under GST (Rule 47)

How to Get GST Number for Online Selling: Quick Guide for Sellers

Exemptions for Charitable Trusts - Section 11 of the Income Tax Act

Circular No. 171/03/2022-GST: Made Easy Guide to Fake Invoicing and Its Implications

How to Open a Bookstore in India

GST Rates and HSN Code 4203: Apparel, Clothing, and Leather Accessories Explained

Looking for a billing software?

Quick Links

Learn More

Testimonials