GST of 18% applies to apartment maintenance only when two conditions are both met: your monthly maintenance is more than ₹7,500, and your residents’ association collects more than ₹20 lakh a year. If either is not met, no GST is charged.
The ₹7,500 per month rule
Maintenance paid to a residents’ welfare association is exempt if it is up to ₹7,500 per flat per month. If it is higher, GST of 18% applies to the full amount, not just the part above ₹7,500. So a flat paying ₹8,000 a month pays 18% on the whole ₹8,000.
The ₹20 lakh turnover limit
An association with an annual turnover of up to ₹20 lakh does not need to register for GST, so it charges no GST at all. Most large gated communities in Bengaluru cross this limit.
What is not counted as maintenance
- Property tax and electricity charges collected and paid on your behalf are usually left out of the ₹7,500 test.
- Water charges may be counted towards maintenance depending on how they are billed.
Corpus fund and club charges at handover
At handover, developers often collect a corpus or sinking fund and advance maintenance. Advance maintenance billed by the developer usually attracts 18% GST. Tax rulings on corpus funds have differed depending on whether the fund is a refundable deposit or a payment for services, so check how your agreement describes it.
Club membership charges billed separately also usually attract 18%. When you compare projects, add these handover costs to the price. Our guide to the 20:80 payment plan explains how payment stages work.
Frequently asked questions
Is GST charged on maintenance of ₹5,000 a month?
No. Maintenance up to ₹7,500 per flat per month is exempt.
If my maintenance is ₹9,000, is GST charged only on ₹1,500?
No. Once maintenance is above ₹7,500, GST of 18% applies to the full amount.
Does a small apartment association charge GST?
Not if its annual turnover is up to ₹20 lakh.
Is GST charged on advance maintenance at handover?
Usually yes, at 18%, when the developer bills it as a service.
