New GST on Maintenance Charges in Housing Societies
- GST on maintenance charges applies at 18% when monthly contribution exceeds ₹7,500 per member and the housing society’s annual aggregate turnover exceeds ₹20 lakh.
- If maintenance exceeds ₹7,500 per month per member, GST applies on the entire maintenance amount, not just the amount above ₹7,500.
- Water and electricity charges recovered separately from residents may remain outside GST depending on the nature of the recovery and applicable conditions.
- Housing societies paying GST may claim eligible Input Tax Credit (ITC) on goods, capital goods and input services, subject to normal GST conditions and restrictions.
- GST on society maintenance charges does not apply where the ₹7,500 monthly contribution exemption or ₹20 lakh turnover threshold conditions are satisfied.
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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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
There was no separate new GST on society maintenance introduced from 22 September 2025. The existing RWA maintenance rules continue to apply.
GST Applicability: When Is It Charged?
| Monthly Maintenance per Member | Annual Turnover of RWA | GST Applicable? |
|---|---|---|
| ₹7,500 or less | Any turnover | No |
| More than ₹7,500 | ₹20 lakh or less | No |
| More than ₹7,500 | More than ₹20 lakh | Yes, 18% |
Monthly Maintenance per Member
Annual Turnover of RWA
GST Applicable?
Monthly Maintenance per Member
Annual Turnover of RWA
GST Applicable?
Monthly Maintenance per Member
Annual Turnover of RWA
GST Applicable?
Where both conditions are met, 18% GST applies on the entire maintenance amount, not only on the amount above ₹7,500.
Issue Credit Notes for Disputed Maintenance Charge Bills
* No credit card required
New GST on Society Maintenance Charges: Rate and Details
| Type of Charge | GST Rate | Rate Before 22 Sep 2025 | HSN/SAC Code |
|---|---|---|---|
| General maintenance charges | 18%* | 18%* | 9995 |
| Security, cleaning and upkeep as part of society maintenance | 18%* | 18%* | 9995 |
| Repair and maintenance charges collected by the society from members | 18%* | 18%* | 9995 |
| Electricity recovered at actual cost from residents | Outside taxable value, subject to pure-agent conditions | Same treatment | — |
| Municipal water charges recovered at actual cost | Generally not taxable, subject to applicable conditions | Same treatment | — |
Type of Charge
GST Rate
Rate Before 22 Sep 2025
HSN/SAC Code
Type of Charge
GST Rate
Rate Before 22 Sep 2025
HSN/SAC Code
Type of Charge
GST Rate
Rate Before 22 Sep 2025
HSN/SAC Code
Type of Charge
GST Rate
Rate Before 22 Sep 2025
HSN/SAC Code
Type of Charge
GST Rate
Rate Before 22 Sep 2025
HSN/SAC Code
*18% applies where the RWA is taxable. The established rule is that when monthly contribution exceeds ₹7,500 per member and aggregate annual turnover exceeds ₹20 lakh, the entire contribution is taxable at 18%.
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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 .
