18% GST on Apartment Maintenance Above Rs. 7,500: Triggers Compliance Worries Among Residents

As more people are living in apartments in cities, the government has decided to charge 18% GST on monthly maintenance fees. In Karnataka, around 50 lakh people live in Bengaluru apartments, with 40 lakh more in cities like Mysuru, Mangaluru, Hubballi, and Belagavi.

GST will be applicable in case the monthly maintenance is over Rs. 7,500 or if the total annual maintenance collection is more than Rs. 20 lakh. Even for one-time costs like painting or lift replacement, GST will still apply.

This has triggered the apartment residents, and they are wondering whether they should go for GST registration. If the societies are registered under GST for once, they will need to file two returns every month (on the 11th and 20th), along with an annual return.

Many people assume that the GST rate is 5%; however, in reality, it is 18%. Therefore, every society must pay Rs. 3.6 lakh GST annually if their maintenance touches Rs. 20 lakh. This will add a tax burden on the residents.

As per an expert, apartment associations can claim ITC, but once registered, they must follow GST rules every month. Also, GST will apply in case the criteria are met, even if the association isn’t registered with the Cooperative Department.

If you are confused about whether your apartment falls under GST, you can visit the local commercial Tax office and get an official letter confirming your status after paying Rs. 500. Since GST compliance is now mandatory, apartment associations must maintain proper financial records to avoid penalties.