Residential maintenance up to ₹7,500 per member per month is fully exempt from GST. It becomes taxable at 18% only when BOTH fail — the per-member charge exceeds ₹7,500 and the society's aggregate turnover exceeds ₹20 lakh. When taxable, the 18% applies to the entire charge, not just the excess. Commercial complex (CAM) maintenance has no exemption — 18% always.
GST on Maintenance — Decision Table
Every common society / RWA charge, with the GST position and whether Input Tax Credit flows through.
| Charge / Scenario | GST | ITC to Society | Notes |
|---|---|---|---|
| Residential maintenance ≤ ₹7,500/member/mo | Nil | No | Exempt supply — Entry 77 |
| Residential maintenance > ₹7,500/member/mo * | 18% | Yes | On the full amount, not just excess |
| Commercial complex maintenance (CAM) | 18% | Yes | No exemption threshold |
| Parking (bundled within ₹7,500 limit) | Nil | — | Part of maintenance consideration |
| Clubhouse / hall let to outsiders | 18% | Yes | Service to non-members always taxable |
| Sinking / corpus fund | 18% | — | Taxable if for future services & society registered |
| Contractor bills to society (lift, security) | 18% | Yes* | ITC only if outward supply is taxable |
| Municipal property tax / water bill collected | Nil | — | Pure agent reimbursement — no GST |
* Only if the society is also over the ₹20 lakh turnover threshold. Maintenance is a service (SAC 9995) — the GST 2.0 rationalisation effective 22 September 2025 did not change these rules. Confirm on the GST portal before invoicing.
Two Tests Decide the GST
A residential society charges GST only when it fails both conditions. Clear either one and it stays exempt.
Exempt — either test passes
- Per-member charge is ₹7,500/month or less, OR
- Society aggregate turnover ≤ ₹20 lakh/year
- Bundled parking & common-area upkeep
- No GST on the maintenance bill
- No ITC on contractor expenses
Taxable — both tests fail
- Any member pays more than ₹7,500/month, AND
- Society turnover exceeds ₹20 lakh/year
- 18% on the full amount, not just the excess
- Applies member-by-member, not society average
- ITC on contractor bills now available
It is not a society-wide average and not per flat. A 200-flat society where every member pays ≤ ₹7,500 is fully exempt no matter how large the total collection. But if one member pays ₹7,500.01, GST applies to that member's entire charge — and if turnover also crosses ₹20 lakh, the society must register.
Not sure whether your society should be charging GST?
Get My GST Position →How GST Adds Up — Two Flats
When maintenance crosses ₹7,500, the 18% hits the entire amount — so a small increase can add a disproportionate tax, a common flashpoint at AGMs.
Nil Flat at ₹7,500/month
18% Flat at ₹8,000/month
The ₹500 higher maintenance triggers ₹1,440 of GST — because 18% applies to the whole ₹8,000, not to the ₹500 above the limit. This only bites once the society is also above ₹20 lakh aggregate turnover.
- 1Charge per memberCheck the ₹7,500/month line
- 2TurnoverCheck aggregate > ₹20 lakh
- 3Both fail?18% on the full charge
- 4Register & fileGSTIN, GSTR-1 & 3B
Planning a maintenance hike? Model the GST impact before the AGM.
Talk to a GST Expert →ITC for Housing Societies
A GST-registered society pays 18% on contractor bills — lift AMC, security, housekeeping, gardening, water tankers, repairs. It can claim that as Input Tax Credit, but only to the extent its outward maintenance supply is taxable.
| Society position | ITC on contractor GST? | Reason |
|---|---|---|
| Charges ≤ ₹7,500/member (exempt) | No | Inputs used for an exempt supply |
| Taxable maintenance (both tests failed) | Yes | Inputs used for taxable outward supply |
| Commercial complex CAM | Yes | Always a taxable supply |
| Mixed — some members above, some below | Partly | Proportionate ITC on the taxable portion |
A society charging exempt maintenance absorbs the 18% contractor GST as a cost — it cannot be recovered.
Corpus / Sinking Fund
There is no blanket exemption for corpus or sinking-fund contributions. If the society is GST-registered and the contribution is consideration for future maintenance services, it is generally taxable at 18%. One-time large collections should be evaluated individually.
Treat a sinking / corpus fund as an advance for future services: if the society is registered, 18% typically applies. Genuine capital reimbursements and pure-agent collections (municipal tax, electricity, water passed through at cost) stay outside GST.
Society GST Compliance Checklist
Registration becomes mandatory once any member is billed over ₹7,500/month and aggregate turnover crosses ₹20 lakh (₹10 lakh in special-category states). Turnover counts maintenance, parking, hall rent and every other receipt.
- GST registration (GSTIN) when required
- Per-member ₹7,500 test tracked monthly
- Aggregate turnover monitored vs ₹20 lakh
- Correct exempt / taxable classification
- Tax invoice or bill of supply to members
- ITC eligibility on contractor bills
- Pure-agent treatment of municipal charges
- GSTR-1 (outward supplies)
- GSTR-3B (monthly / quarterly)
- Corpus / sinking-fund GST review
- GSTR-9 annual return
- Books & vendor-invoice upkeep
Many RWAs register unnecessarily or, worse, collect above ₹7,500 without registering. Get the ₹7,500 and ₹20-lakh tests checked once a year — it decides whether you charge GST at all and whether contractor ITC is even claimable.
Managing a society or RWA? Get its GST position and returns handled end-to-end.
Get Society GST Help →- Exemption & notifications: gst.gov.in
- CBIC: cbic-gst.gov.in
- RWA exemption: Entry 77, Notification 12/2017-CT(R)
- ₹7,500 clarification: Circular 109/28/2019-GST (22 Jul 2019)
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.