Getting Hit with 18% GST on Your Maintenance Bill? Here’s What You Need to Know
Have you been surprised to find an 18% GST tacked onto your apartment’s monthly maintenance bill? If your housing society is still under your builder’s management, there’s a good reason why — and it’s all about how GST law works.
Why You’re Paying 18% GST on Maintenance
When the builder continues to manage your apartment complex — handling services like security, cleaning, landscaping, and repairs — they are treated as a service provider under GST regulations. As a result, GST at 18% is charged on the full maintenance amount, regardless of how low the bill is.
Compare this to societies managed by their own residents through Resident Welfare Associations (RWAs) — they get a bit of a tax break under certain conditions.
Here’s a quick breakdown:
| Type of Management | Is GST Charged? | GST Rate |
|---|---|---|
| Builder-managed | Yes | 18% |
| RWA-managed, ₹7,500 or less | No | 0% |
| RWA-managed, above ₹7,500 | Yes | 18% |
So long as the builder runs the show, the society cannot claim any GST exemptions.
Can This Tax Be Avoided?
Yes — but only if you form an RWA or register as a cooperative housing society and follow a few key rules.
Conditions for GST Exemption:
- The monthly maintenance per flat must not exceed ₹7,500.
- The annual turnover of the RWA must be under ₹20 lakh.
If both conditions are met, GST is not applicable. But if either condition is breached, the full 18% tax comes back into play.
How to Form an RWA and Cut Down on Tax
Want to take control of your community’s finances and stop paying GST on maintenance? Here’s a basic roadmap:
- Get resident support – Gather a majority of homeowners willing to form an RWA.
- Register your society – Use the Societies Registration Act or similar applicable legislation.
- Get a PAN & bank account – These are essential for operating and maintaining finances.
- Take over from the builder – Officially inform them and assume maintenance responsibility.
Once your RWA is in charge and the GST conditions are met, you could start seeing savings almost immediately.
Did You Know?
In 2024 alone, over 12,000 Indian housing societies transitioned from builder control to RWA-led management — mainly to avoid GST and gain more autonomy.
In Conclusion
If your builder is still handling your society’s affairs, you’re likely stuck paying 18% GST on top of your maintenance dues. Transitioning to an RWA isn’t just a smart financial move — it’s also a step toward resident-led governance and better accountability.
The earlier your society makes the shift, the sooner you can stop paying unnecessary tax and start managing your home on your terms.
Disclaimer
This blog is for general awareness only. It doesn’t constitute legal or tax advice. Rules may change, and every housing society’s case is different. Always consult a qualified professional or refer to official government portals before making financial or legal decisions.
