GST on maintenance adds to cost of gated living Recurring costs in focus for urban homeowners

For many apartment owners in cities like Hyderabad, the cost of living in gated communities is increasingly shaped by recurring expenses rather than just property prices. Among these, maintenance charges — now subject to GST beyond a threshold — are emerging as a significant component of monthly outgo, raising concerns over affordability.

Under current GST norms, housing societies and Resident Welfare Associations (RWAs) are required to levy 18 per cent tax on maintenance charges if the monthly contribution per flat exceeds ₹7,500 and the society’s annual turnover crosses ₹20 lakh. If the monthly amount remains below ₹7,500, it is exempt. However, once the threshold is crossed, GST is applicable on the entire amount, not just the excess portion, increasing the financial burden on residents.

In cities such as Hyderabad, maintenance charges in gated communities have been rising steadily due to the wide range of amenities and services offered. Charges typically range between ₹3 and ₹10 per square foot, depending on the project. For a 2,500 to 3,000 sq. ft. apartment, this translates into a monthly expense of ₹8,000 to ₹12,000.

With the addition of 18 per cent GST, residents end up paying an extra ₹1,500 to ₹3,000 every month. This adds to the overall cost of homeownership, especially at a time when property prices and other living expenses are also on the rise.

The higher maintenance costs are linked to services such as 24/7 security, power backup, water management systems, clubhouses, gyms, landscaped areas and other shared facilities. RWAs collect these charges to manage and maintain the infrastructure within the community.

Residents and housing associations have raised concerns over the tax, arguing that maintenance charges are essential for upkeep of residential spaces and should not be treated as taxable services. The additional burden, they say, does not result in any direct benefit to homeowners.

The impact is particularly visible among middle-income buyers, some of whom are re-evaluating the affordability of gated community living due to rising recurring costs.  

• COST IMPACT

• GST applies if maintenance exceeds ₹7,500 monthly. 

• Applicable when society turnover crosses ₹20 lakh. 

• 18 per cent tax levied on total amount. 

• Monthly charges range ₹8,000 to ₹12,000. 

• GST adds ₹1,500 to ₹3,000 monthly. 

• Rising costs impacting affordability for homeowners.