BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
If you live in a gated society or apartment complex, you probably pay monthly maintenance fees. But have you noticed GST on the invoice? That’s because gst on maintenance charges applies under certain conditions. This blog explains when GST is charged, who must pay it, and how much.
Yes, but only when certain criteria are met. The Goods and Services Tax (GST) is applicable on maintenance or service charges collected by:
However, GST is not charged in every case. Let’s understand the conditions.
| Condition | GST Applicable? |
|---|---|
| Monthly maintenance per member ≤ ₹7,500 | No |
| Monthly maintenance per member > ₹7,500 | Yes @18% |
| Annual turnover of RWA/society < ₹20 lakhs | No |
| Annual turnover of RWA/society > ₹20 lakhs | Yes |
So, gst on society maintenance is charged only when both these apply: monthly contribution exceeds ₹7,500 and the society’s turnover exceeds ₹20 lakhs.
Get a Free Trial – Best Accounting Software For Small Business
| Type of Charge | GST Rate | HSN/SAC Code |
|---|---|---|
| General maintenance charges | 18% | 9995 |
| Security, cleaning, upkeep | 18% | 9995 |
| Repairs, plumbing, civil work | 18% | 9954 |
| Water, electricity (charged at cost) | Exempt | – |
The gst on maintenance charges by builder is also 18% before handover, while utility reimbursements remain exempt.
Let’s say your monthly bill includes:
Total payable = ₹9,000
In this case:
Explore a Free Demo of – Best Inventory Management Software For Small Business
Always maintain GST-compliant records to claim Input Tax Credit when eligible.
Understanding the gst on maintenance charges ensures transparency for homeowners and compliance for housing societies and developers. Always check your bill for accurate breakup and GST application.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.