GST on Housing Maintenance Charges: Rules, Court Rulings & What Owners Must Know
By Author | April 21, 2025
Category: GST News | Housing Society GST Update
What Triggered the GST Rule?
The Central Board of Indirect Taxes and Customs (CBIC) recently clarified that if a resident pays more than ₹7,500 per month and the society’s annual turnover exceeds ₹20 lakh, GST is charged on the full amount—not just the excess.
Many believed that only the amount exceeding ₹7,500 would be taxed. However, CBIC reaffirmed that once both thresholds are crossed, 18% GST applies to the entire monthly fee.
✅ When Does GST Apply to Housing Societies?
As per the July 22, 2019 notification, two conditions must be met for GST to apply:
- The monthly contribution per flat owner exceeds ₹7,500, and
- The society’s annual turnover exceeds ₹20 lakh
If both are true, the Resident Welfare Association (RWA) must collect and remit 18% GST on the full maintenance amount.
Kerala High Court Calls 2021 GST Amendment ‘Unconstitutional’
In a landmark judgment, the Kerala High Court struck down the 2021 GST amendment that taxed services between RWAs and their members. The court emphasized that a transaction between an association and its members violates the principle of mutuality.
Citing the Calcutta Club Supreme Court case (2019), the bench declared that such internal dealings aren’t considered “supply of services” under GST law.
This ruling has sparked debates across India.
What Experts Say About RWA GST Liability
Legal and tax professionals remain cautious. A senior tax advisor shared:
“While the Kerala judgment supports homeowners, the matter isn’t closed. Societies should wait for a Supreme Court verdict before changing billing norms.”
Until then, RWAs must stay compliant with existing GST rules to avoid penalties.
How Apartment Owners Are Reacting
Middle-class homeowners across cities like Mumbai, Bengaluru, and Noida are feeling the pinch.
“This 18% GST is unfair. It’s driving societies to accept cash payments,”
said a Borivali resident.
Anil Kalgi, President of the Bangalore City Flat Owners’ Welfare Association, added:
“Maintenance isn’t a business. It’s unfair to tax it like one.”
Others highlight operational costs. One Whitefield-based RWA spends ₹15 lakh monthly on water and power—items that are individually GST-exempt, but taxable as part of the society’s invoice.
Noida Residents Call for Tax Relief
The President of the Noida Federation of Apartment Owners Associations voiced concerns over poor infrastructure:
“We pay more but get less. Without basic amenities, this tax feels like exploitation.”
Residents argue that taxation must align with service delivery.
Conclusion: What Apartment Owners Should Watch Out For
While the Kerala High Court ruling gives hope, the final interpretation will come from the Supreme Court. Until then, housing societies
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