New GST on Maintenance Charges in Housing Societies
- 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.
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
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 |
Condition
GST Applicable?
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GST Applicable?
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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 |
Condition
GST Applicable?
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GST Applicable?
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GST Applicable?
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GST Applicable?
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 | – |
Type of Charge
New GST Rate
HSN/SAC Code
Type of Charge
New GST Rate
HSN/SAC Code
Type of Charge
New GST Rate
HSN/SAC Code
Type of Charge
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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 .
