Factor Apartment Maintenance Costs and GST into Financial Planning
As of February 2026, GST at 18% applies to apartment maintenance if monthly charges exceed ₹7,500 per member and the society's annual turnover is above ₹20 lakh.
The Goods and Services Tax (GST) on apartment maintenance charges remains a crucial consideration for homeowners and Resident Welfare Associations (RWAs). As of February 2026, the rule states that GST is applicable at 18% on maintenance fees if the monthly charge exceeds ₹7,500 per member and the RWA's annual turnover is greater than ₹20 lakh. This levy encompasses services such as security, cleaning, repairs, and upkeep of common areas. RWAs must register under GST if their turnover surpasses the ₹20 lakh threshold. Understanding these conditions is essential for proper financial planning and compliance, ensuring that residents are aware of the tax implications on their monthly maintenance bills. Failure to comply can lead to penalties and increased scrutiny from tax authorities.
Section 9 of the CGST Act, 2017, empowers the government to levy GST on the supply of services, which includes maintenance services provided by RWAs. The legal issue arises in determining whether the RWA meets the threshold for GST applicability, creating a compliance risk if these thresholds are not accurately assessed.
Aggressive tax authorities might argue that splitting maintenance bills into separate heads to avoid GST is not permissible if the total monthly contribution per member exceeds ₹7,500. RWAs should maintain meticulous records and seek professional advice to defend against potential disputes.
This impacts CAs and CFOs by requiring them to ensure housing societies correctly calculate and collect GST, file returns accurately, and understand the implications for residents' maintenance costs. Proper compliance avoids penalties and maintains financial transparency.