GST on Maintenance Charges Above INR 7,500 What You Need to Know

Monthly maintenance fees in apartment complexes and gated communities cover essential services like cleaning, security, landscaping, and general upkeep.

Under India’s Goods and Services Tax (GST) framework, maintenance charges are taxable only if both of the following conditions are met:

• The maintenance fee per flat exceeds ₹7,500 per month
• The society’s total annual revenue exceeds ₹20 lakh

If either of these limits is not crossed, GST does not apply.

When GST Is Applicable

If both thresholds are exceeded, an 18% GST is levied on the entire maintenance amount, not just the excess over ₹7,500.

Example: If your monthly maintenance charge is ₹8,000, GST is charged on the full ₹8,000 — not just ₹500.

Housing Society Compliance Requirements

When a society is liable for GST, it must:

• Register under GST
• Issue tax invoices showing CGST and SGST separately
• File GST returns (monthly or quarterly)
• Maintain proper financial records

Following these rules ensures legal compliance and builds resident trust.

Input Tax Credit (ITC) Benefits

Registered housing societies can claim Input Tax Credit (ITC) on expenses such as:

• Security services
• Housekeeping contracts
• Repairs and maintenance supplies

This helps reduce the overall tax burden and can lead to cost savings for residents.

Important Notes for Residents

If your society’s maintenance fee is ₹7,500 or less per flat or the total income is below ₹20 lakh per year, GST is not applicable.

But if both thresholds are crossed, expect 18% GST on the entire maintenance charge.

Knowing these rules can help you avoid unexpected charges and ensure smooth compliance.

Key Takeaways

GST applies only if:

• Maintenance > ₹7,500/month per flat

-Annual turnover > ₹20 lakh

-Tax Rate: 18% on the full amount

• Societies can claim ITC to reduce their tax liability

-If either threshold is not met → No GST