GST on Housing Society Maintenance in 2026: The Rs 7,500 per Month Rule, Rs 20 Lakh Limit, What Is Excluded and When to Register

GST on society maintenance applies only when a member pays more than Rs 7,500 a month and the society's turnover is above Rs 20 lakh a year.

A 120-flat society in Rajkot raised its monthly maintenance from Rs 6,500 to Rs 8,200 after adding a security agency and a lift maintenance contract. At the next general meeting, a member asked whether the society now has to charge GST. Nobody on the committee knew, and the society's accountant had never handled a GST registration.

Housing societies and apartment associations across Gujarat are crossing the Rs 7,500 line as costs rise. The rules are simple once you know them, and getting them wrong means tax, interest and penalty on years of bills. Here is how they work in 2026.

In short: Maintenance charges collected by a housing society or residents' association from its members are exempt from GST up to Rs 7,500 per month per member. If a member's charge is more than Rs 7,500, GST at 18% applies on the whole amount, not just the excess. A society whose total annual turnover is Rs 20 lakh or less does not have to register or charge GST at all. The limit applies separately to each flat, so an owner of two flats is tested flat by flat. Amounts the society only collects and passes on, such as property tax or statutory water and electricity dues, are left out. Income from outsiders, such as mobile tower rent or hall bookings, is taxable and counts towards turnover. A registered society can claim credit of GST paid on services like security, lift maintenance and repairs.

Our team handles GST registration, monthly returns, accounts, audit and TDS for housing societies. The details are at the end of this guide.

When does a society have to charge GST?

• Both tests must be met: the charge per member is more than Rs 7,500 a month, and the society's aggregate turnover is more than Rs 20 lakh a year. If either test is not met, no GST is payable.
• The whole amount: once the charge crosses Rs 7,500, GST at 18% applies on the full monthly charge. On Rs 8,200, that is Rs 1,476 a month per flat.
• Per flat: a member who owns two flats is tested separately for each flat.
• Any form of society: the rule applies to co-operative housing societies, apartment owners' associations and residents' welfare associations alike.

What is left out of the Rs 7,500

• Statutory dues passed on: property tax, and water or electricity charges that the society collects and pays to the authority on members' behalf, are excluded when the society acts only as a pure agent.
• Splitting does not help: breaking the regular maintenance into two bills to stay below Rs 7,500 does not change the total charge for common services.

Income from outsiders

• Taxable: rent from a mobile tower on the terrace, hall or garden bookings by non-members, and advertising hoardings are not covered by the members' exemption.
• Counts towards Rs 20 lakh: this income is added to the society's turnover when checking the registration limit.

Registration, invoices and returns

• Register: once turnover crosses Rs 20 lakh and some charges are taxable, apply for GST registration in the society's name and PAN. See do I need GST registration.
• Bill correctly: issue tax invoices to members, showing the taxable maintenance and any exempt or pass-through items separately.
• File returns: GSTR-1 and GSTR-3B, monthly or quarterly. See our GST return calendar.
• Claim credit: GST paid on security, lift maintenance, repairs, generators and pumps can be set off against the GST you charge, which reduces the cost to members.

Income tax and TDS for the society

• Members' contributions: are not the society's income, on the principle of mutuality.
• Taxable income: interest on bank deposits and income from outsiders is taxable, and the society files its own income tax return.
• TDS: a society paying a security agency, contractor or professional above the TDS limits must deduct TDS, which needs a TAN and quarterly TDS returns. See our guide to TDS returns.
• Co-operative societies: also have their accounts audited under the Gujarat co-operative law. See our guide on co-operative society audit and income tax.

Back to the Rajkot society. At Rs 8,200 a month, each flat's charge crosses Rs 7,500, and 120 flats paying Rs 8,200 for 12 months gives a turnover of about Rs 1.18 crore, well above Rs 20 lakh. The society registers for GST, bills 18% on the maintenance, and claims credit for the GST charged by the security agency and the lift contractor, which brings the net cost down. Mobile tower rent goes on a separate taxable invoice. The society also takes a TAN and deducts TDS on the security agency's bills.

How we help

• Check whether your society's charges cross the GST limits
• GST registration in the society's name, and invoice formats for members
• Monthly or quarterly GST returns, with credit on security, lift and repair bills
• TAN, TDS deduction and TDS returns
• Society accounts, audit and income tax return
• Replies to GST notices for past years

Gadhia Associate has been in practice since 2007 and has handled work for over 7,000 clients, with a 5.0 Google rating from more than 100 reviews. Housing societies and apartment associations from Junagadh, Rajkot, Jamnagar and Ahmedabad come to our Junagadh office, where same-day appointments are available. Work for societies elsewhere in Gujarat is handled online.

Society maintenance above Rs 7,500? Get the GST position checked before the next bill. Call or WhatsApp +91 82005 28355, or message us on WhatsApp. The first consultation is free.

Frequently asked questions

Is GST applicable on society maintenance charges?

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

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

On the full amount. If the monthly charge is Rs 8,200, GST at 18% applies on Rs 8,200.

Does the Rs 7,500 limit apply per flat or per member?

Per flat. An owner of two flats is tested separately for each.

Are property tax and water charges included in the Rs 7,500?

No, if the society only collects them and pays them to the authority on members' behalf.

Can a housing society claim input tax credit?

Yes, a registered society can claim credit of GST paid on services and goods used for common facilities, such as security, lift maintenance and repairs.

Is mobile tower rent received by a society taxable?

Yes. Income from outsiders is taxable under GST and counts towards the Rs 20 lakh limit, and it is taxable income for the society.

Position as of 16 October 2026, as per the GST exemption for residents' associations and CBIC Circular 109/28/2019-GST. Your society's position depends on its charges, members and other income, so take advice on your own facts.