--- title: "New GST On Maintenance Charges 2026 | Latest Rate, Price & Impact Guid" description: "Learn about the GST On Maintenance Charges, including input tax credit, and compliance guidelines under GST 2.0, effective from 22nd September 2025." canonical: "https://busy.in/gst-rates/maintenance-charges/" author: "Nishant" published: "2025-05-16T05:08:22.000Z" category: "GST Rates" --- - GST on maintenance charges applies when monthly fees exceed ₹7,500 and the society's turnover is above ₹20 lakhs. - The new GST rate for general maintenance, security, cleaning, and repairs is 18%. - Water and electricity charges are exempt from GST when billed at cost. - Resident Welfare Associations cannot claim Input Tax Credit, but builders can during the possession phase. - Check your bill for proper GST application to ensure transparency and compliance. # 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. ## 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 | Live Demo Available Today ## Issue Credit Notes for Disputed Maintenance Charge Bills Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## 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. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## 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. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## 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 **Explore a Free Demo of –** [**Best Inventory Management Software For Small Business**](https://busy.in/accounting-software/inventory-management/) ## 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**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) 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**](https://busy.in/gst/gst-returns/) . ## About the author **Nishant** 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. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)