Apartments Maintenance To Have 18% GST

In Karnataka, lakhs of apartment residents are facing confusion and concern as the government begins enforcing 18% GST on apartment maintenance fees. According to rules, if an apartment’s monthly maintenance exceeds ₹7,500 or the annual collection of the housing society crosses ₹20 lakh, Goods and Services Tax (GST) will apply.

This move impacts around 50 lakh residents in Bengaluru alone, and another 40 lakh in cities like Mysuru, Mangaluru, Hubballi, and Belagavi. Even if the ₹20 lakh collection happens due to one-time expenses like lift replacement or building painting, the GST rule is still applicable.

Many residents are confused, thinking GST is 5%, but the actual rate is 18%. This could mean ₹3.6 lakh in GST annually for societies collecting ₹20 lakh — adding up to ₹36 lakh over 10 years. In addition, societies need to pay ₹1–2 lakh yearly for auditors and compliance help.

Once registered under GST, apartment associations must file monthly returns (on the 11th and 20th) and an annual return, increasing their compliance burden. Chartered Accountant Sanjay Dhariwal explained that while societies can claim input tax credit, they must maintain strict monthly compliance. Also, GST applies even if societies aren’t registered under the Cooperative Department, if they meet the threshold.

To check GST applicability, residents can visit the local Commercial Tax office, pay ₹500, and get an official confirmation letter. Experts urge societies to get their financial records in order to avoid penalties and red tape.