GST on Housing Society Maintenance Charges 2026-27

Updated: 3 June 2026

Short answer: Monthly maintenance charges of ₹7,500 or less per member are exempt from GST. If a member pays more than ₹7,500/month, 18% GST applies on the full amount (not just the excess). Commercial society maintenance has no exemption — 18% GST always applies.

₹7,500

The GST exemption threshold is per member per month — not per flat, not per society. A society with 200 flats where all members pay ≤₹7,500/month is fully exempt, regardless of total collection.

GST Exemption Rule for Housing Societies / RWAs

Under the GST framework, Residential Welfare Associations (RWAs) and housing societies providing services to their members benefit from an exemption under Entry 77 of the GST Exemption Notification. The conditions are:

The services are provided by the RWA/society to its own members
Monthly contribution per member does not exceed ₹7,500
The services relate to maintenance of the residential complex (common area maintenance, security, housekeeping, etc.)

If even one member's monthly contribution exceeds ₹7,500, GST at 18% applies on the entire amount charged to that member — not just the amount above ₹7,500.

GST Registration Threshold for Housing Societies

A housing society must register for GST if:

Any member pays more than ₹7,500/month in maintenance, OR
The society's aggregate annual turnover from all services exceeds ₹20 lakh (₹10 lakh for specified states)

Total annual turnover includes maintenance collections, parking charges, clubhouse fees, event hall rent, and any other services provided to members or outsiders. Even if all individual members pay ≤₹7,500, a large society may still need to register purely due to the ₹20 lakh turnover threshold.

GST Rate by Payment Type — Housing Society

Payment Type	GST Rate	Condition
Monthly maintenance (residential) — per member ≤₹7,500/month	Exempt	Society for residential complex
Monthly maintenance (residential) — per member >₹7,500/month	18% on full amount	Entire charge taxable, not just excess
Monthly maintenance (commercial complex)	18% — no exemption	Commercial property — no threshold
Parking charges (residential)	Exempt (if bundled within ₹7,500 limit)	Part of maintenance consideration
Sinking fund / corpus fund	Taxable if society is GST registered	May be treated as advance for services
Clubhouse / event hall rental to outsiders	18%	Services to non-members always taxable
Contractor charges to society (repairs, lift, etc.)	18%	Contractor charges GST to society; society can claim ITC

GST on Specific Maintenance Services

Service	Who Charges GST	GST Rate	ITC Available to Society?
Lift maintenance (AMC)	Lift contractor to society	18%	Yes — if society is registered
Security / manpower services	Security agency to society	18%	Yes — if society is registered
Gardening and landscaping	Landscaping contractor to society	18%	Yes — if society is registered
Water supply / tanker	Water supplier to society	18%	Yes — if society is registered
Housekeeping / cleaning	Cleaning agency to society	18%	Yes — if society is registered
Building repair and painting	Contractor to society	18%	Yes — if society is registered
Society to residential member (≤₹7,500/mo)	Society to member	Exempt	N/A — exempt supply

Input Tax Credit (ITC) for Housing Societies

A GST-registered housing society can claim ITC on GST paid to vendors and contractors for services related to common area maintenance. This is a significant benefit — ITC directly reduces the GST payable by the society on taxable maintenance charges.

ITC LIMIT

ITC is available only on inputs used for taxable supplies. If the society charges members ≤₹7,500/month (exempt supply), it cannot claim ITC on the corresponding contractor expenses. ITC is only available when the society is making taxable supplies (members paying >₹7,500/month or commercial maintenance).

Commercial vs Residential — Key Difference

Feature	Residential Society / RWA	Commercial Complex (CAM)
GST exemption threshold	₹7,500/member/month	No exemption
GST rate if applicable	18%	18%
Mandatory registration	Only if >₹7,500/member or turnover >₹20L	Always (taxable supply)
ITC on contractor charges	Yes (if registered and taxable supply)	Yes

Frequently Asked Questions

What does ₹7,500 per member per month mean for GST exemption?

The GST exemption threshold of ₹7,500 is applied per member per month. If a flat owner pays ₹7,500 or less in total monthly maintenance to the housing society/RWA, the entire amount is exempt from GST — regardless of how many flats are in the society. However, if even one member pays ₹7,500.01 or more per month, GST at 18% applies on the entire amount (not just the excess). This threshold is evaluated member by member, not as a society-wide average.

What if the housing society is not GST registered but charges exceed ₹7,500?

If a housing society crosses the GST registration threshold — either because any member pays more than ₹7,500/month OR the society's annual aggregate turnover from maintenance and other services exceeds ₹20 lakh — it is legally required to register for GST. Collecting maintenance above ₹7,500/month without GST registration is non-compliant. Members could face issues claiming ITC, and the society could be liable for back taxes, interest, and penalties under the GST law.

Can a housing society claim Input Tax Credit (ITC) on repairs and construction?

Yes — a GST-registered housing society can claim Input Tax Credit on GST paid for services and goods used for common area maintenance. This includes contractor charges for lifts, electrical work, plumbing, security services, and building repairs. ITC reduces the GST liability of the society. However, ITC cannot be claimed on goods and services used for personal/member-specific purposes. The society must maintain proper GST invoices from vendors to support ITC claims.

Is GST applicable on commercial complex maintenance charges?

Yes — maintenance charges for commercial complexes (offices, malls, commercial buildings) attract 18% GST without any exemption threshold. The ₹7,500 exemption is specifically for Residential Welfare Associations (RWAs) and housing societies for residential purposes. Common Area Maintenance (CAM) charges billed to commercial tenants or owners are fully taxable at 18% GST. Commercial societies must register for GST regardless of the per-member monthly amount.

Is GST applicable on housing society corpus fund / one-time sinking fund?

The GST treatment of corpus fund (capital works fund / sinking fund) contributions depends on their nature. One-time advance corpus contributions are generally treated as consideration for services to be rendered in future — and if the housing society is GST registered, these may be subject to GST at 18%. The GST Council has not provided a blanket exemption for corpus funds. Each contribution must be evaluated — if it is for future maintenance services, it may be taxable. Societies should seek specific legal advice for large corpus fund collections.

GST Registration GST Return Filing Input Tax Credit GST on Rent GST Audit

◆ Available in 71 Cities

Gst On Maintenance Near You

Expert CA/CS assistance for gst on maintenance across India. Click your city for local details.

→ New Delhi → Mumbai → Bengaluru (Bangalore) → Hyderabad → Chennai → Kolkata → Pune → Ahmedabad → Noida (UP) → Gurgaon (Gurugram) → Jaipur → Lucknow → Chandigarh → Surat → Kochi (Cochin) → Faridabad → Ghaziabad → Greater Noida → Panipat → Sonipat → Manesar (IMT) → Dharuhera → Mathura → Palwal → Agra → Kosi Kalan → Aligarh → Khair → Jewar (Noida International Airport) → Kanpur → Varanasi (Kashi) → Prayagraj (Allahabad) → Meerut → Bareilly → Moradabad → Gorakhpur → Firozabad → Saharanpur → Muzaffarnagar → Bulandshahr → Hapur → Karnal → Kurukshetra → Ambala → Hisar → Rohtak → Yamunanagar → Rewari → Bhiwani → Jodhpur → Udaipur → Kota → Ajmer → Bikaner → Ludhiana → Amritsar → Jalandhar → Patiala → Mohali (SAS Nagar) → Bathinda → Dehradun → Haridwar → Rudrapur → Shimla → Solan (Baddi-Barotiwala-Nalagarh) → Bhopal → Indore → Gwalior → Jammu → Srinagar → Panchkula

Ask Veda