No GST on Housing Society Maintenance Below Limit: Govt Clarifies
If you are residing in a housing society, then you are required to pay a certain amount for the maintenance of the common areas and structures. If the monthly maintenance cost is less than the designated threshold, residents of an apartment complex managed by a resident welfare association (RWA) and registered society are exempt from paying the 18% goods and services tax (GST), the Ministry of Finance informed Parliament on Monday (July 28, 2025).
Responding to a question, the Ministry of Finance addressed key concerns raised by Members of Parliament regarding GST compliance for residents, the role of apartment associations, and the rationale behind the 18% GST levy on maintenance charges.
Members of Parliament asked several questions regarding the GST levied on apartment maintenance charges. ET Wealth online tells you the government's response regarding its efforts aimed at improving clarity, reducing confusion around GST status, and alleviating the compliance burden.
Manickam Tagore B and Suresh Kumar Shetkar, Members of Parliament, Lok Sabha, asked the following questions from the government about the GST on apartment maintenance charges:
The manner in which the government ensures that residents of smaller apartments with maintenance charges less than Rs 7,500 (per month) are not burdened by the GST compliance requirements.
The government in Parliament replied: GST rates and exemptions are prescribed on the recommendations of the GST Council, which is a constitutional body comprising both the Centre and states/UTs. No GST compliance requirements have been placed upon the residents, who are the service recipients in this case, irrespective of the amount of maintenance paid. Compliance requirements, if at all, are placed upon the apartment associations, who are the service providers. Moreover, as per the recommendations of the GST Council, services provided by an apartment association (an unincorporated body or a registered non-profit entity) to its own members against maintenance charges up to Rs 7,500/- per month per member are already exempt from GST.
The measures taken/to be taken by the Union government to address the concerns of residents who are unsure about their apartment's GST status and may need to obtain an official letter.
The government in Parliament replied: As stated above, no GST compliance requirements have been placed upon the residents, irrespective of the monthly maintenance amount paid. The compliance requirements are placed upon the suppliers, i.e., the apartment associations, who are required to register under GST if their aggregate turnover exceeds Rs 20 lakhs (Rs 10 lakhs in special category states) in a financial year. Such associations are required to pay GST only where the maintenance charged is more than Rs 7,500 per month per member.
