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What is the GST on Society Maintenance Charges?

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0 2024-11-27T18:28:01+00:00

My father is a builder and I can tell you is GST applicable on society maintenance charges. As far as I know, some aspects of society's maintenance fees are taxable under GST, while others are not. Besides individuals and corporations, housing societies are also subject to the GST Act. If the annual total income surpasses Rs. 20 lakhs and the monthly fees per member exceed Rs. 7,500, owners are required to pay 18% GST. Read on to know more about this.

What is GST on Maintenance Charges of Society?

If you stay in society, you must know the society maintenance charge is the money that residential societies collect to maintain and repair the common areas and facilities on their property. These fees cover a range of costs, including water bill, cleaning, gardening, and security. 

  • My father informed me according to the latest rule on GST on housing societies, residents who pay maintenance to the Resident Welfare Association (RWA) are excluded from paying GST on society maintenance fees as long as the monthly fee does not exceed INR 7,500 per member (the monthly cap was INR 5,000 prior to January 25, 2018). 

  • But, GST on commercial building maintenance fees is applicable to the entire amount invoiced. Flat owners who pay more than Rs 7,500 are subject to an 18% GST on society maintenance.

You can better understand GST for society maintenance charges from the below table.

Aggregate Annual Turnover

Maintenance Charge per member per month

GST Applicability

Up to Rs.20 lakh

Up to Rs.7500

Exempt

Up to Rs.20 lakh

More than Rs.7500

Exempt

More than Rs.20 Lakh

Up to Rs.7500

Exempt

More than Rs.20 Lakh

More than Rs.7500

Applicable

I hope this helps you understand what is the GST on society maintenance charges.

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