🏢 GST on Maintenance Charges Above ₹7,500: What Every Resident Must Know in 2025
GST on Maintenance Charges above ₹7500
📌 Overview
The application of GST on maintenance charges above ₹7,500 has been a topic of concern among residents of housing societies and RWA (Resident Welfare Associations). While many believe that all housing-related services are tax-free, the truth is more nuanced.
This blog explains the latest 2025 GST implications on maintenance bills, who it affects, how much is charged, and how IndiaFills can help you stay compliant.
🧾 What Are Maintenance Charges?
Maintenance charges are monthly contributions collected by residential complexes or societies to ensure the upkeep of common facilities like:
- Elevators
- Water tanks
- Electricity in common areas
- Security
- Cleaning staff
- General repairs
These charges are paid to the Resident Welfare Association (RWA) or housing society by each flat owner.
💰 GST Rule on ₹7,500 Maintenance Threshold
As per the GST law, if your housing society or RWA collects maintenance charges above ₹7,500 per member per month, and the annual turnover of the society exceeds ₹20 lakhs, then GST at 18% will be applicable on the entire amount, not just the portion exceeding ₹7,500.
👉 Key Highlights:
- Up to ₹7,500/month: Exempt from GST.
- Above ₹7,500/month: Entire amount taxable at 18% (if the society’s turnover crosses ₹20 lakhs annually).
🧮 Example to Understand the Calculation
Suppose Mr. Verma lives in a society where he pays ₹9,000/month as maintenance. If the society’s aggregate turnover > ₹20 lakhs/year, then:
- GST at 18% on ₹9,000 = ₹1,620
- Total Payable = ₹9,000 + ₹1,620 = ₹10,620/month
This extra burden of GST often leads to confusion and disputes, especially among salaried and retired residents.
⚖️ RWA or Society GST Registration Requirement
RWAs or Housing Societies must obtain GST registration if their total turnover exceeds ₹20 lakhs in a financial year, even if most of their income is from maintenance. This includes:
- Monthly maintenance collections
- Rentals from mobile towers
- Parking fees
- Penalties or late fees
🛑 Note: Societies below ₹20 lakh turnover are exempt from GST, regardless of the per-member amount.
❓Common Misconceptions Clarified
🔸 Myth: GST is applicable only on the amount above ₹7,500
Truth: If the charge exceeds ₹7,500/month/member and the RWA is registered under GST, then GST applies to the entire amount, not just the portion above ₹7,500.
🔸 Myth: Only commercial societies pay GST
Truth: Even residential societies must pay GST if they cross the prescribed limits.
🧠 What Should Flat Owners & RWAs Do?
- Check if your RWA is GST-registered
- Ask for a tax invoice with GSTIN mentioned
- Confirm the applicable GST rate on your monthly bill
- Review the turnover of the society annually to verify if registration is required
- Consult experts to file GST returns timely and correctly
👨💼 How IndiaFills Helps RWAs & Societies
IndiaFills.com offers end-to-end GST solutions for Housing Societies & RWAs, including:
✅ GST registration for RWAs
✅ Monthly GST return filing
✅ Preparation of invoices & reconciliation
✅ Advisory on compliance & exemptions
✅ Digital record maintenance
🔒 No hidden fees. Transparent pricing. Dedicated experts.
Whether you’re a resident or an RWA treasurer, IndiaFills simplifies GST filing and removes your burden with a professional approach.
📈 Final Thoughts
With GST compliance getting stricter, every housing society must take proactive steps to follow the law. Ignorance of rules on GST on maintenance charges above ₹7,500 can lead to notices, penalties, and disputes among members.
👉 Stay informed. Stay compliant. Let IndiaFills.com be your partner in navigating housing GST with ease.
✅ Need GST Assistance for Your Housing Society?
📲 Reach out today at indiafills@gmail.com or visit IndiaFills.com for expert support.
