Paying more than Rs.7500 for Apartment Maintenance Fee? Get ready to face 18% GST

The government is working with housing societies to impose an 18% GST on monthly upkeep because apartments are now the standard form of urban dwelling. About 50 lakh people, according to experts, reside in flats in Bengaluru, and at least another 40 lakh do the same in areas like Mysuru, Mangaluru, Hubballi, and Belagavi. These figures only include Karnataka.

The updated rules for housing societies are the GST catch in the Union Budget for 2025–2026: GST becomes applicable if an apartment's monthly maintenance exceeds Rs 7,500 or if the society's total yearly revenue surpasses Rs. 20 lakh.

The GST bracket applies even if the society receives Rs. 20 lakh in a fiscal year for sporadic costs like painting or upgrading the elevator.

It is understandable why residents of apartments are triggering panic buttons, debating on WhatsApp, and convening meetings to decide whether or not to register for GST. After registration, there would be a yearly return in addition to two monthly returns on the eleventh and twentieth of each month.

Regarding GST rates, there is also increasing misunderstanding. Many people think it is only 5%, but it is actually 18%. This implies that any apartment complex that costs more than Rs. 20 lakh must pay Rs. 3.6 lakh in GST each year, which comes to Rs. 36 lakh over ten years.

According to an expert, add to that the weight of compliance, which amounts to Rs. 1-2 lakh for the auditor to assist with filing returns and other statutory compliances.