If you’re living in a housing society and paying over ₹7,500 monthly as maintenance charges, get ready for an unpleasant surprise, an additional 18% GST will now apply to your bill. The government’s new decision is set to impact thousands of flat owners, especially in metro cities, by increasing the cost of urban living.
What’s Changing?
Under the updated GST rule, any monthly maintenance charge exceeding ₹7,500 will now attract an 18% Goods and Services Tax—a cost previously absorbed or avoided by many Resident Welfare Associations (RWAs).
So if your monthly bill is ₹9,000, expect to pay ₹10,620 going forward—₹1,620 more every month.
The Catch? It’s in the Fine Print
- GST applies only if your housing society’s annual turnover exceeds ₹20 lakh.
- If you own two or more flats and each pays ₹7,500 separately, GST will be levied on the total and not individually.
- This change was first hinted at during the 25th GST Council meeting in 2018, but it’s only now becoming widespread in enforcement.
The Real Impact
In cities like Mumbai, Bengaluru, and Gurugram, where maintenance fees often cross ₹10,000/month, this tax means an annual burden of over ₹19,000 extra per household.
For middle-class families already juggling EMIs, school fees, and inflation, this feels like a punch to the monthly budget.
What You Can Do
- Check your society’s GST registration status at your local commercial tax office.
- Maintain clear bills showing individual flat contributions if you own multiple units.
- For societies close to the ₹20 lakh limit, consider optimizing expenses to remain below the threshold (if legal and feasible).
Why Now?
The government’s move is aimed at formalizing all high-value residential maintenance collections, ensuring tax compliance and plugging revenue leaks. But for flat owners, it feels like another cost in an already expensive urban housing ecosystem.
Living in an apartment with premium amenities might now come with a premium tax tag too. For tenants and owners alike, it’s time to recalculate what “affordable housing” really means in 2025.
