Now Taxed at 18%
A fresh wave of confusion has gripped apartment residents across India. The reason? A new Goods and Services Tax (GST) guideline that imposes 18% tax on flat maintenance charges exceeding ₹7,500 per month.
What’s the Rule?
If a resident pays more than ₹7,500 as monthly maintenance, GST at 18% will apply—provided the housing society or Resident Welfare Association (RWA) is registered under GST. The rule isn’t new, but recent clarifications have brought it back into the spotlight.
If the total annual turnover of the apartment association exceeds ₹20 lakh, GST registration becomes mandatory. Once registered, the society must levy 18% GST on any resident paying over ₹7,500 in monthly maintenance.
What Does It Mean for Residents?
- Residents in upscale or larger complexes often pay higher maintenance.
- These residents will now face increased monthly bills.
- Many are concerned about compliance, paperwork, and tax filings.
- Societies are unsure whether they should register or de-register.
This has sparked widespread confusion among RWAs and flat owners. Several associations fear legal implications and penalties if rules aren’t followed correctly.
Industry Reactions
Tax experts believe this rule will affect mid-to-premium housing projects the most. Many argue it’s unfair to treat maintenance charges like luxury services.
Others say it’s simply a compliance issue that can be managed with good systems. However, with no standardised approach and rising maintenance costs, RWAs feel the heat.
What Should You Do If You’re a Resident?
Check if your housing society is GST-registered.
If yes, and your maintenance exceeds ₹7,500, expect 18% GST.
Keep digital records of payments for clarity and tax filing.
Consider discussing with your RWA or consulting a CA.
Ongoing Demands
Resident groups across states have requested the GST Council to revisit this rule. They’ve asked for exemption limits to be revised or GST to be removed from essential maintenance charges altogether.
As the debate continues, residents are left juggling between taxes and day-to-day expenses.
