When is GST applicable on housing society maintenance?

When maintenance per unit exceeds ₹7,500/month and society turnover is above ₹20 lakhs/year .

What is the GST rate on society maintenance?

The GST on society maintenance is 18% , under SAC 9995 .

Do I have to pay GST on water and electricity collected by society?

No, if charged at actual cost without markup, they are exempt from GST.

Is GST applicable on maintenance collected by builder?

Yes. GST on maintenance charges by builder is 18% , especially during the pre-handover phase.

Can the housing society claim Input Tax Credit?

Generally no , as RWAs are not involved in commercial activity.

New GST on Maintenance Charges in Housing Societies

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.

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GST Rates

Are Maintenance Charges Taxable Under GST?

Yes, but only when certain criteria are met. The Goods and Services Tax (GST) is applicable on maintenance or service charges collected by:

Resident Welfare Associations (RWAs)
Housing societies or cooperative societies
Builders during possession or handover

However, GST is not charged in every case. Let’s understand the conditions.

New GST Rate on Society Maintenance in India

The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rules for society (RWA) maintenance charges (no compensation cess).

New GST Applicability: When Is It Charged?

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

Old GST Applicability: When Is It Charged?

(Old GST Rates – Applicable Until 21st September)

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.

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New GST on Society Maintenance Charges: Rate and Details

Type of Charge	New 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	–

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.

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GST on Building Maintenance Charges: Examples

Let’s say your monthly bill includes:

₹8,000 as maintenance
₹1,000 for water supply (actuals)

Total payable = ₹9,000

In this case:

GST @18% is charged only on ₹8,000 = ₹1,440
Total invoice = ₹10,440

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Input Tax Credit for RWAs or Builders

RWAs: Cannot claim ITC as they don’t supply taxable goods or services
Builders: May claim ITC during possession phase if maintenance charges are billed

Always maintain GST-compliant records to claim Input Tax Credit when eligible.

Conclusion

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 .

Nishant

Chartered Accountant

MRN No.: 445516

City: Delhi

I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.

Frequently Asked Questions

When is GST applicable on housing society maintenance?

When maintenance per unit exceeds ₹7,500/month and society turnover is above ₹20 lakhs/year.
What is the GST rate on society maintenance?

The GST on society maintenance is 18%, under SAC 9995.
Do I have to pay GST on water and electricity collected by society?

No, if charged at actual cost without markup, they are exempt from GST.
Is GST applicable on maintenance collected by builder?

Yes. GST on maintenance charges by builder is 18%, especially during the pre-handover phase.
Can the housing society claim Input Tax Credit?

Generally no, as RWAs are not involved in commercial activity.

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