GST on Apartment Maintenance Charges- Rates and Applicability

Maintenance Charges are the contributions that apartment buildings or Resident Welfare Associations (RWAs) receive from the residents in order to fund the maintenance and oversight of shared facilities. These costs often cover cleaning, safety, and maintenance of common areas such as swimming pools, community halls, playgrounds, gyms, lifts, and other essential services that help in the seamless running of the housing society. On July 22, 2019, the government issued Circular No.109/28/2019-GST to address concerns about GST on annual maintenance charges demanded by RWAs to their members. The purpose of this circular was to provide clarity on the GST rules governing flat maintenance fees.

What Is Apartment Maintenance?

Maintenance of apartment buildings involves the process of managing and taking care of the residential building/housing society such that it remains hygienic, safe, and operational. The process encompasses activities such as cleaning of common areas, repairing elevators and electric systems, water management, payments made to security guards, and waste disposal among others. Typically, residents make payment on a monthly basis to cover all these costs.

Applicability of GST on Apartment Maintenance Charges

Under the earlier service tax system, housing societies had to register if maintenance charges exceeded ₹10 lakhs per year.

The Applicability of GST on Apartment Maintenance Charges are:

• Under the GST system, this limit has been increased to ₹20 lakhs per financial year.
• If a housing society’s total maintenance collection exceeds ₹20 lakhs annually, GST registration is mandatory.
• While calculating this ₹20 lakh threshold, all charges are included—even exempt items like property tax and electricity bill recoveries.
• If the total turnover crosses ₹20 lakhs, the society must register under GST and obtain a GST number.
• However, GST is not applicable on maintenance charges if the amount per flat is up to ₹7,500 per month.

Read Also: Apartment Maintenance Charges Rules and Regulations

Conditions of GST Applicable on Society Maintenance Charges

For the imposition of gst on housing society maintenance charges, the housing society must fulfil two criteria:

• The total of the fees collected by the society should surpass Rs 20 lakhs within a financial year, and
• The monthly maintenance fee for a specific flat or office should exceed Rs 7,500.

While the housing society can levy GST on bigger apartments, smaller apartments might be exempt based on maintenance charges.

If the monthly maintenance cost for a housing society exceeds Rs. 7500 per home, an 18% Goods and Services Tax (GST) is charged on the total sum.

For individuals owning more than one apartment, ₹7,500 becomes applicable per apartment individually.

GST on Maintenance Charges of Society- Applicability Overview

Note: 

Even if the GST on apartment maintenance charges surpasses INR 7,500 per month per member, the RWA is exempt from applying for GST registration or paying GST if its total income does not reach INR 20 lakhs in a single fiscal year.

Also Read: TDS on Maintenance Charges

Expenses That Are Included Under GST on Apartment Maintenance Charges 

1. Sinking Fund

As this service is provided to members, it’s taxable and should be factored into the limit of Rs. 7.5k.

2. Property Tax on Common Areas

This must be included in the society maintenance GST when determining the limit (Rs. 7.5 Thousand).

3. Shared Water Cost

If these fees are for regular water usage, they are taxable and included in the limit.

4. Maintenance Fees

These cover administrative expenses, security, and account audits, making them taxable under GST on apartment maintenance charges and subject to deduction from the limit.

5. Use of Shared Areas by Members or Visitors

GST on society maintenance charges has to be collected as these are taxable charges, and they are considered in the Rs. 7500 limit.

6. Standard Services

Facilities like the clubhouse and swimming pool are taxed and have a maximum limit of INR 7,500.

Also Check: 18% GST on Apartment Maintenance Above ₹7,500

Expenses That Are Excluded Under GST on Apartment Maintenance Charges 

1. Parking Fees

Paid by members for parking spaces, these are taxed and are not included in the 7,500 limit. They are charged one-on-one and are not meant for collective use.

2. Property Tax on Private Areas, Parking, and More

Since the society acts as an intermediary, it’s exempt from property tax and not bound by the Rs. 7.5 Thousand limit.

3. Fees for Share Transfers

These are for transfer of shares, particularly in real estate sales, and are taxed; but, because no outside entity is involved, they do not count towards the total limit of Rs. 7.5k.

4. Rental Income

These services, which are specialised and mainly for businesses, are taxable. If the society does not qualify for coverage under GST, it will be liable to rent control measures (RCM) beginning 1st April 2018.

5. Water Costs Collected by the Society for a Single Member

Water costs collected by the society for a single member are exempt from GST on maintenance charges of society, as they are charged to an individual member and do not exceed the ₹7,500 limit.

6. Interest on Default

Since interest on default is a fee for each instance, it’s taxable and not subject to the Rs. 7,500 Limit.

Also Read: GST on Apartments

Is GST Applicable on Maintenance Charges Collected by Builders?

GST on maintenance charges collected by builders on behalf of residents or housing societies. Understanding which charges attract GST helps avoid confusion and ensures compliance. 

The table below summarises the applicability of GST on maintenance charges collected by builders.

GST on Maintenance Charges of Commercial Building

GST on maintenance charges of commercial buildings is generally applicable at 18%, regardless of the amount collected. Commercial properties do not enjoy the ₹7,500 exemption available to residential societies.

Key points to remember:

• GST applies if the maintenance service is taxable and the provider is registered.
• Commercial units almost always attract GST on maintenance.
• Proper invoicing and GST compliance are essential for builders and facility managers.

Calculation of GST on Apartment Maintenance Charges

Resident Welfare Associations (RWAs) must follow specified procedures for calculating and submitting GST on apartment maintenance charges.

GST Rate on society maintenance charges is 18%, provided the monthly contribution exceeds ₹7,500 per member and the society’s annual turnover is above ₹20 lakhs 

Steps to Calculate GST on Maintenance Charges

Here a detailed instructions on how to calculate and submit GST on flat maintenance fees:

Step 1: Identifying Which Charges are Taxable: 

RWAs should first identify which parts of maintenance charges are taxable under GST and which are exempt. If a member’s monthly contribution is up to ₹7,500, there is no need to split charges. However, if it exceeds ₹7,500, charges must be clearly separated to calculate GST accurately.

Step 2: Filing and Submission of GST Returns

After calculating GST, the RWA must file and submit GST returns within the due dates. This includes providing details of taxable amounts, GST collected, and other required information.

Also Check: Apartment Maintenance Charges Calculation

GST on Society Maintenance- Filing Frequency and Compliance

A housing society is required to file 37 returns, with three returns per month that cover:

• Consolidated Return: 20th of the following month
• Expense Side: 15th of the following month
• Billing Side: 10th of the following month
• Annual Return GSTR 9 by the end of December following the current year

If a housing society deducts TDS, it must file GSTR7 by the 10th of the following month. Housing Societies are not part of the Composition Scheme.

Resident Welfare Associations are expected to maintain detailed records of all Supply and Expense reports for a period of 72 months for the purpose of audits.

Also Check: Guide to GST Invoicing for Housing Society

Apartment Maintenance with NoBrokerHood Accounting Software

NoBrokerHood Society Accounting Software is a digital financial management solution built for housing societies and RWAs. It simplifies all accounting, billing, expense tracking, transparency, and regulatory compliance tasks that are often difficult to manage manually.

All Solutions by NoBrokerHood:

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