GST on Society Maintenance in Mumbai: When the Rs 7,500 Rule Applies, and on What Amount

Society maintenance attracts 18% GST only if your monthly charge per flat exceeds Rs 7,500 and the society's turnover exceeds Rs 20 lakh. Then it is on the full amount.

Landscaped pool deck between residential towers in Mumbai

Owners in larger Mumbai complexes are often surprised to see GST on the society bill. Others assume GST applies only above Rs 7,500 on the excess. Both reactions come from the same rule, which is simpler than it looks.

When does GST apply to society maintenance?

According to ClearTax, citing the CBIC circular of 22 July 2019, a housing society charges 18% GST on maintenance only when both are true:

the society's annual turnover is more than Rs 20 lakh, and
the maintenance charge is more than Rs 7,500 per member per month.

If either condition isn't met, there's no GST on maintenance.

Is GST charged on the full amount or only above Rs 7,500?

On the full amount. If your monthly maintenance is Rs 10,000, GST is 18% of Rs 10,000, which is Rs 1,800, not 18% of the Rs 2,500 above the limit.

What is left out of the Rs 7,500 calculation?

Amounts the society collects on behalf of the municipality, such as property tax and water charges, are excluded from both the Rs 7,500 test and the GST calculation.

What if I own two flats in the same society?

The Rs 7,500 limit applies per flat when maintenance is charged separately for each apartment.

Read your society bill line by line. Taxes collected for BMC shouldn't be counted when the society applies GST.

Who pays the GST on maintenance when a flat is rented?

The society bills the member, so the owner is responsible to the society. Between owner and tenant, it depends on what your leave and licence agreement says about maintenance. Many Mumbai agreements make the owner pay maintenance and the tenant pay utilities; write it down either way. Our guide on what a rented flat costs the owner covers the full list.

Can I claim maintenance or its GST against rental income?

No. Under income from house property, you get a standard 30% deduction after municipal taxes, not a deduction for actual maintenance.

What this means for you

Owners: check that property tax and water charges are excluded before GST is applied on your bill.
NRI owners: for flats we manage, society bills are tracked in the TND app so you can see what's been paid. See our NRI property management.
Committee members: keep the bill format clear, so members can see which parts attract GST.

Swimming pool and landscaped garden between residential towers in the Mumbai region — Bigger amenities usually mean bigger maintenance bills. See TND Care.

Frequently asked questions

Is GST applicable on society maintenance charges?

Only when the society's annual turnover exceeds Rs 20 lakh and the maintenance exceeds Rs 7,500 per member per month.

Is GST on maintenance charged only on the amount above Rs 7,500?

No. Once the limit is crossed, 18% GST applies to the full maintenance amount.

Is property tax included in the Rs 7,500 limit?

No. Amounts collected for the municipality, such as property tax and water charges, are excluded.

Related reading

Confused by a society bill? Book a video call or WhatsApp me.

Warmly,
Yanik

General information, not tax advice.

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