GST on Apartment Maintenance: Rates, Rules & Applicability

GST on apartment maintenance is a tax introduced under the GST law in 2017, applicable when housing societies charge more than ₹7,500 per flat per month and have an annual turnover of over ₹20 lakh. The GST rate is 18% on services like security, repair, and facility management, while essentials like water, electricity, and municipal charges are exempt. The GST on maintenance charges rule helps create transparency, standardized billing, compliance, and better financial tracking, making housing management more structured, accountable, and resident-friendly. 

What Is GST on Apartment Maintenance? 

Apartment maintenance GST refers to the 18% GST applied to maintenance services when charges exceed ₹7,500 per flat per month. Introduced under the GST law 2017 , it ensures regulated billing and proper compliance for apartment associations and homeowners. [1]

How Much GST Do You Pay on Maintenance Charges?

GST on apartment maintenance charges is applicable when the monthly maintenance amount per flat exceeds ₹7,500, and the housing society's annual turnover exceeds ₹20 lakh.

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• If the monthly maintenance is below ₹7,500, no GST is applicable, and residents only pay the base maintenance amount without extra tax.
• When the maintenance charge exceeds ₹7,500, GST is charged at 18% only if the housing society’s annual turnover exceeds ₹20 lakh.[2]
• Essential payments like water bills, electricity charges, and property taxes are exempt from GST and don’t affect the total taxable maintenance cost.
• GST helps maintain transparency by regulating all transaction records, receipts, and billing practices, ensuring accountability and smoother societal administration.
• Housing societies that benefit from GST input credit may reduce overall costs over time, supporting structured management and long-term financial planning for residents.
• Calculating GST Example: Maintenance ₹9,000 + GST (18% OF ₹9,000 = ₹1.620) = ₹10,620 total payable.

Who Is Responsible for Paying GST on Apartment Maintenance?

The responsibility for GST on apartment maintenance depends on who occupies the property. The apartment GST rate applies when charges exceed ₹7,500 per month, and the conditions meet the GST rules. 

• RWA’s (Resident Welfare Associations) collect GST from residents and deposit it with the government while maintaining proper records and compliance.
• Owners pay GST on monthly bills issued by the housing society that exceed ₹ 7,500, provided the housing society's annual turnover exceeds ₹20 lakh.
• Tenants pay maintenance GST only if maintenance is included in the rent or billed separately by the owner or associations.

How GST Impacts Your Total Monthly Maintenance Bill?

GST affects your maintenance bill by increasing the payable amount if charges cross the ₹7,500 monthly limit. It applies only when both eligible conditions are met, making it important to understand GST on apartment maintenance charges clearly.

• Some essential components remain exempt, meaning not all items are taxed, helping balance total cost and preventing excessive maintenance expenses.
• Higher monthly payments result from 18% GST being added to the regular maintenance charge, increasing the final payable amount. 
• Billing becomes structured and detailed, clearly listing charges for services, repairs, and facilities, improving transparency and financial clarity.

Benefits of GST on Apartment Maintenance

GST on apartment maintenance creates a standardized billing system and ensures financial accountability within housing societies. It helps track expenses more clearly, reduces confusion, and supports transparent management practices for both residents and associations.

• Ensure clear and uniform billing for all residents.
• Improves financial transparency and record-keeping.
• Helps RWA’s claim input tax credit where applicable.
• Reduces the chances of hidden and unexplained charges.
• Supports better compliance with government regulations.

GST Rules for Small Housing Societies and Low-Maintenance Apartments 

GST rules for small housing societies and low-maintenance apartments are simple and structured. These guidelines ensure fairness, clarity, and compliance, especially when understanding apartment maintenance charges rules and regulations, and how GST applies based on thresholds.[3]

• RWAs must register under GST once they meet the required limits.
• No GST applies if the monthly maintenance per flat is below ₹7,500.
• Societies with an annual turnover of less than ₹20 lakh are exempt from GST.
• Essential utility payments, such as water and electricity, remain GST-free.
• GST applies only when both eligibility conditions are crossed.

Common Issues & What to Do If You’re Overcharged GST

Sometimes, residents face billing confusion or incorrect GST tax calculations for maintenance. If GST on flat maintenance charges by the builder or society appears incorrectly applied, understanding common issues and solutions helps ensure fair and accurate billing. [4]

• If the invoice is missing GSTIN or a proper breakup, then request a compliant tax invoice with GSTIN, rate, taxable amount, exemptions, and total payable as mentioned.
•  If GST is charged even when maintenance is below ₹7,500, request an updated invoice and remind the associate that GST is not applicable below this limit.
• Incorrect GST rate applied, ensure only 18% is charged, and ask for recalculation if the percentage differs from the official rate.
• GST added without meeting turnover criteria, ask for proof that the annual turnover exceeds ₹20 lakh; otherwise, request removal of GST from bills.
• Exempt items like water, electricity, or property tax included under GST, request a detailed bill showing taxable and non-taxable services separately.

Latest Government Updates on GST for Housing Societies

Recent government updates in 2025 focus on simplifying GST rules for housing societies and improving clarity on billing, tax limits, and compliance. These charges help residents understand when GST applies and prevent incorrect or excessive charges.

• The government clarified that if the maintenance per flat is ₹7,500 or below, GST is not applicable, protecting small societies and low-paying residents. [5]
• Societies must charge 18% GST on the full amount if the fees exceed ₹7,500 and turnover crosses ₹20 lakh annually; partial exemption no longer applies. [6]
• Compliance responsibility remains with the RWA or association, not individual flat owners, ensuring simple oversight and standardized billing for all residents. [7]

Frequently Asked Questions?

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