Key Takeaways
- Maintenance charges up to Rs 7,500 per month per member are exempt from GST under Entry 77 of Notification 12/2017-Central Tax (Rate), provided the RWA's aggregate turnover is below Rs 20 lakh.
- If either threshold is breached, GST at 18% (SAC 9995) applies. The CBIC circular says it applies on the full amount, not just the excess above Rs 7,500.
- The Madras High Court (Greenwood Owners Association) has ruled that GST applies only on the excess above Rs 7,500 — binding in Tamil Nadu, persuasive elsewhere, but not yet confirmed by the Supreme Court.
- Sinking fund, repair fund, and non-occupancy charges are all part of the maintenance charge for the exemption calculation.
- Electricity and water collected at actual cost without markup are exempt. Any markup makes the entire utility charge taxable.
- Registered societies can claim ITC on security services, cleaning supplies, generator fuel, lift maintenance, and common area repair costs.
- The Rs 7,500 threshold applies per apartment — a member owning two flats gets the limit tested separately for each.
Is GST applicable on housing society maintenance charges? GST at 18% applies on maintenance charges collected by a Resident Welfare Association or housing society if the per-member monthly charge exceeds Rs 7,500 and the society's aggregate annual turnover exceeds Rs 20 lakh. Both conditions must be breached for GST to apply. The exemption is under Entry 77 of Notification 12/2017-Central Tax (Rate), SAC 9995.
Every apartment owner in India pays a monthly maintenance charge to their housing society or Resident Welfare Association. Whether that charge attracts GST depends on two thresholds that interact with each other, a CBIC circular that many treasurers misread, and a High Court ruling that contradicts the circular. This guide works through the exemption logic, the registration obligation, ITC mechanics, and the practical steps a society treasurer or managing committee must take.
Looking for expert help with GST on housing society maintenance charges RWA India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
The Two-Threshold Exemption
The exemption for housing society maintenance charges has two legs, and both must be satisfied simultaneously for the exemption to apply.
Threshold 1: Rs 7,500 Per Member Per Month
Entry 77 of Notification 12/2017-Central Tax (Rate) dated 28 June 2017 (as amended by Notification 2/2018 dated 25 January 2018) exempts:
"Service by an unincorporated body or a non-profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution — up to an amount of seven thousand five hundred rupees per month per member — for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex."
If the maintenance charge per member does not exceed Rs 7,500 per month, this leg is satisfied.
Threshold 2: Rs 20 Lakh Aggregate Turnover
Even if individual member charges exceed Rs 7,500, the society is not required to register under GST or pay GST if its aggregate annual turnover does not exceed Rs 20 lakh (Rs 10 lakh for special category states listed in the Fourth Schedule). Aggregate turnover includes all taxable, exempt, and zero-rated supplies made by the society, including maintenance charges, interest on deposits, rental income from common areas, and any other income.
How They Interact
| Per-member charge | Society turnover | GST applicable? |
|---|---|---|
| ≤ Rs 7,500/month | ≤ Rs 20 lakh | No — both thresholds satisfied |
| ≤ Rs 7,500/month | > Rs 20 lakh | No — Entry 77 exemption applies regardless of turnover |
| > Rs 7,500/month | ≤ Rs 20 lakh | No — no registration required, no GST payable |
| > Rs 7,500/month | > Rs 20 lakh | Yes — GST at 18% applies |
The important case is the fourth row: only when both thresholds are breached does GST become applicable. A small society with 20 members paying Rs 8,000 each (total annual turnover Rs 19.2 lakh) does not need to charge GST because turnover is below Rs 20 lakh. A large society with 200 members paying Rs 6,000 each (total annual turnover Rs 1.44 crore) does not charge GST because per-member charge is below Rs 7,500.
The Rs 7,500 Trap: Full Amount or Only the Excess?
This is the most contested question in housing society GST. If maintenance is Rs 9,000 per month per member, is GST charged on Rs 9,000 (the full amount) or on Rs 1,500 (the excess above Rs 7,500)?
CBIC Position: Full Amount
Circular 109/28/2019-GST dated 22 July 2019 states that if the maintenance charges exceed Rs 7,500 per month per member, GST is payable on the entire amount of Rs 9,000, not on the excess of Rs 1,500. The circular treats the Rs 7,500 as a threshold, not an exemption limit. Once you cross it, the entire amount becomes taxable.
Example under CBIC position:
- Monthly maintenance: Rs 9,000
- GST at 18%: Rs 1,620
- Total payable by member: Rs 10,620
Madras High Court: Only the Excess
In the Greenwood Owners Association v. Union of India case, the Madras High Court quashed the CBIC's interpretation. The Court held that the word "upto" in Entry 77 connotes an upper limit — it means any amount up to Rs 7,500 is exempt, and only the excess is taxable.
Example under Madras HC position:
- Monthly maintenance: Rs 9,000
- Exempt portion: Rs 7,500
- Taxable portion: Rs 1,500
- GST at 18%: Rs 270
- Total payable by member: Rs 9,270
Which Position Applies to You?
The Madras High Court ruling is binding in Tamil Nadu. Societies in Tamil Nadu can charge GST only on the excess above Rs 7,500, citing this judgment.
In all other states, the CBIC Circular 109/28/2019-GST is the prevailing administrative position. The government has not filed a Supreme Court appeal as of July 2026, but it has not withdrawn the circular either. Societies outside Tamil Nadu that follow the Madras HC position take a litigation risk if challenged by the department.
Practically, most CAs advise following the CBIC circular to avoid notices, while keeping the Madras HC judgment as a defence if a demand arises.
What Counts as "Maintenance Charges"
The Rs 7,500 threshold is tested against the total monthly charge per member, not just the line item labelled "maintenance." All of the following are included:
- Monthly maintenance fee (common area cleaning, security, gardening, lift maintenance)
- Sinking fund contribution (accumulated for major repairs)
- Repair and maintenance fund
- Parking charges (if bundled with maintenance)
- Non-occupancy charges (charged to members who have rented out their flat)
- Club house or amenity charges (if billed as part of monthly maintenance)
Excluded from the threshold calculation (billed separately at cost):
- Electricity charges collected at actual meter reading without markup
- Water charges collected at actual cost without markup
- Property tax reimbursement collected at actual amount
The GST Council's FAQ document on housing societies confirms that electricity and water collected on an actual-cost, reimbursement basis are not a "supply" for GST purposes. But the moment the society adds even a nominal administrative charge on top of the actual utility cost, the entire amount may be treated as a supply and included in the turnover calculation.
Per Apartment, Not Per Person
The Rs 7,500 threshold is tested per member, which in practice means per apartment. If Mr Sharma owns two flats in the same society and pays Rs 6,000 maintenance on each, the threshold is tested separately for each flat. Both are below Rs 7,500, so both are exempt.
If Mr Sharma owns one flat with maintenance of Rs 10,000, GST applies on that flat's maintenance (assuming the society's turnover exceeds Rs 20 lakh). It does not matter that his total payment across all flats is Rs 16,000 — each flat is tested independently.
GST Registration for Housing Societies
When Registration Is Mandatory
A society must register under GST if its aggregate annual turnover exceeds Rs 20 lakh (Rs 10 lakh in special category states). Aggregate turnover is calculated on a PAN basis, so it includes all income of the society, not just maintenance charges.
Common items that push turnover above Rs 20 lakh:
- Maintenance charges from all members
- Interest earned on fixed deposits and savings accounts
- Rent received from leasing common areas (community hall, terrace for cell towers, parking to non-members)
- Advertisement income (display boards in common areas)
- Transfer fee or membership fee charged on flat resale
Registration Process
The society's authorised signatory (usually the secretary or treasurer) applies for GST registration on the GST portal using Form REG-01. Documents required include the society registration certificate, PAN, address proof, and authorisation resolution from the managing committee. For a detailed walkthrough, see our GST registration process guide.
Voluntary Registration
A society below the Rs 20 lakh turnover threshold can voluntarily register under GST. This is rarely advisable because:
- Once registered, GST must be charged on all taxable supplies regardless of turnover
- Monthly or quarterly GSTR-1 and GSTR-3B filing becomes mandatory
- The compliance cost (CA fees, portal management) often exceeds any ITC benefit
Input Tax Credit for Registered Societies
A GST-registered society can claim ITC on GST paid on inputs used for providing maintenance services to members. Common ITC-eligible expenses:
| Expense | GST rate | ITC available? |
|---|---|---|
| Security agency services | 18% | Yes |
| Housekeeping / cleaning services | 18% | Yes |
| Lift / elevator maintenance (AMC) | 18% | Yes |
| Generator diesel | 5% | Yes |
| Electrical and plumbing supplies | 18% / 28% | Yes |
| Garden maintenance services | 18% | Yes |
| Common area furniture and fixtures | 18% / 28% | Yes (capital goods, ITC in one shot) |
| Professional fees (CA, legal) | 18% | Yes |
| Insurance premium on common property | 18% | Yes |
| Water supply (from municipal authority) | Exempt | No (exempt supply, no GST paid) |
| Electricity from DISCOM | Exempt | No (outside GST) |
Reverse Charge on Security Guards
If the society hires individual security guards directly (not through a security agency), the service is from an unregistered person. Under Section 9(4) of the CGST Act, RCM applies on security services received from any person other than a body corporate. The society must pay GST at 18% under reverse charge and can claim ITC on the same if it is registered and using the service for making taxable supplies.
If the society hires a security agency, the agency charges GST on its invoice. The society claims regular ITC.
Filing Obligations for GST-Registered Societies
Once registered, the society must file:
| Return | Frequency | Due date | Purpose |
|---|---|---|---|
| GSTR-1 | Monthly or quarterly (QRMP) | 11th / 13th of following month | Report maintenance charges billed to members |
| GSTR-3B | Monthly or quarterly | 20th / 22nd–24th of following month | Pay GST liability, claim ITC |
| GSTR-9 | Annual | 31 December | Annual return |
| GSTR-9C | Annual (if turnover > Rs 5 crore) | 31 December | Reconciliation statement |
Most housing societies qualify for the QRMP scheme (turnover up to Rs 5 crore in the previous year), which allows quarterly filing of GSTR-1 and GSTR-3B with monthly PMT-06 challan payments.
Invoicing
The society must issue a tax invoice to each member every month showing:
- Society name and GSTIN
- Member name and flat number
- SAC code 9995
- Maintenance charge amount
- GST at 18% (CGST 9% + SGST 9% for intra-state supply)
- Total amount payable
For a guide on invoice format requirements, see our GST invoice rules guide.
Builder-Managed Societies
In many new apartment complexes, the builder manages maintenance for the first one to three years before handing over to the RWA. During this period, the builder is the service provider, not the society.
Key differences:
- The builder's aggregate turnover (across all projects) almost certainly exceeds Rs 20 lakh, so GST applies regardless of per-member charge
- The Rs 7,500 exemption under Entry 77 applies only to unincorporated bodies or non-profit entities, not to commercial builders
- GST at 18% applies on the full maintenance charge collected by the builder, with no threshold exemption
- Once the RWA is formed and takes over, Entry 77 kicks in and the two-threshold test applies
Practical Checklist for Society Treasurers
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Calculate per-member monthly charge. Include maintenance, sinking fund, repair fund, parking, and any other recurring charge. Exclude electricity and water billed at cost.
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Calculate aggregate annual turnover. Sum all maintenance charges, interest income, rental income, and other receipts for the financial year. Compare against Rs 20 lakh.
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If both thresholds are breached: Register under GST (if not already registered), start issuing tax invoices with 18% GST, file GSTR-1 and GSTR-3B, and claim ITC on eligible inputs.
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If only per-member charge exceeds Rs 7,500 but turnover is below Rs 20 lakh: No GST registration or payment required. Reassess turnover every quarter.
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If turnover exceeds Rs 20 lakh but per-member charge is below Rs 7,500: Register if not already registered (mandatory), but the maintenance charges remain exempt under Entry 77. Other taxable supplies (rental income from common areas, etc.) will attract GST.
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Maintain separate ledgers for maintenance income, utility recharges, and non-maintenance income. This makes the threshold calculation clean and auditable.
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Keep the Madras HC ruling on file. Even if you follow the CBIC circular, the Greenwood judgment is a legitimate defence if the department raises a demand on the full amount.
This guide is based on Entry 77 of Notification 12/2017-Central Tax (Rate) as amended, Circular 109/28/2019-GST dated 22 July 2019, the GST Council's FAQ on housing societies, and the Madras High Court judgment in Greenwood Owners Association v. Union of India. GST rates and thresholds are current as of July 2026 under GST 2.0 (the 40% top slab replaced the 28% slab effective September 2025, but the 18% rate for SAC 9995 is unchanged). For society-specific GST compliance, consult a qualified GST practitioner or explore Tax Garden's managed compliance plans.