If you live in a gated community or an apartment complex, you’re probably familiar with monthly maintenance charges paid to the Resident Welfare Association (RWA).
Until now, if the monthly contribution per member exceeded ₹7,500, the entire amount was subject to 18% GST. But a new GST clarification issued in 2025 could relax the rules—and possibly save you money.
Let’s break down what’s changed, what hasn’t, and how it affects you.
Old Rule: ₹7,500 Limit for GST Exemption
Earlier, the GST Council ruled that:
Contributions up to ₹7,500 per month per member were exempt from GST.
If the amount exceeded ₹7,500, GST was applied on the full amount, not just the excess.
💡 Example: If you paid ₹8,000, you had to pay 18% GST on ₹8,000, not just the ₹500 excess.
What’s Changing in 2025?
As per the latest update discussed during the GST Council’s July 2025 meeting:
Only the excess amount over ₹7,500 may be taxed, not the entire amount.
There’s no GST on maintenance charges if the total turnover of the RWA is below ₹20 lakh annually.
The clarification aims to reduce confusion and ease the burden on smaller housing societies.
This could mean significant savings for apartment owners in large metros and small towns alike.
What Counts as Maintenance Charges?
GST applies to these common items under RWA invoices:
Security services
Lift repair & maintenance
Gardening & landscaping
Housekeeping & sanitation
Clubhouse/common area maintenance
✅ These charges may now qualify for full or partial exemption depending on the new GST rules.
Who Benefits Most?
✅ Apartment owners in societies:
Where monthly charges hover around ₹7,500–₹10,000
With less than ₹20 lakh in total collections
Who previously paid GST on the entire amount
❌ Who may still be taxed:
Premium societies with charges well above ₹7,500
RWAs with annual turnover exceeding ₹20 lakh
Builders collecting “maintenance” pre-handover
Expert Take
“This is a much-needed move to clarify ambiguities. Many RWAs were paying GST unnecessarily or passing the burden to residents. This brings relief and transparency.”
– Ankit Mehta, Chartered Accountant
What RWAs Should Do Now
Assess annual turnover: Below ₹20 lakh? You may qualify for complete exemption.
Break up invoices clearly: Mention GST-applicable and exempt components.
Consult a tax advisor: Especially if your society is borderline or deals with vendors directly.
Long-Term Impact
Lower monthly maintenance bills
Improved transparency in society accounting
Better compliance from RWAs and residents alike
Reduced disputes with vendors and tax officers
Frequently Asked Questions (FAQs)
Q1. Is GST now completely removed from apartment maintenance charges?
Not entirely. If your charges exceed ₹7,500 and your RWA turnover is above ₹20 lakh/year, GST may still apply.
Q2. Who is exempt from paying GST?
Residents paying ₹7,500 or less/month and societies with under ₹20 lakh in collections.
Q3. What’s the new change in GST application?
Only the amount exceeding ₹7,500 may be taxed, rather than the full amount as earlier.
Q4. Does this apply to builder-maintained apartments?
No. GST on pre-handover maintenance from builders still applies separately.
Q5. Do RWAs need GST registration?
Only if their annual collection exceeds ₹20 lakh. Below that, they’re exempt from GST registration.
Final Word
This 2025 GST update brings clarity and much-needed relief to millions of apartment dwellers across India. Whether you're a resident or an RWA member, now is the time to recheck your invoices and talk to your accountant—you might just save some tax!
Published on : 31st July
Published by : SMITA
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