If you live in a housing society or apartment complex, you’re probably paying monthly maintenance charges to a Resident Welfare Association (RWA). But one common confusion is — “Do I need to pay GST on maintenance charges by RWA?”
The Government of India issued a detailed clarification through Circular No. 109/28/2019-GST. In this blog, we’ll break it down for you in a simple “Issue & Clarification” format, so you know exactly what applies and when.
📌 Issue 1: Is GST applicable on maintenance charges collected by RWAs? Is there a limit?
✅ Clarification:
If the RWA charges ₹7,500 or less per month per flat, then NO GST is applicable.
But if the maintenance amount is more than ₹7,500, then GST @18% is applied on the entire amount, not just the extra part.
🔎 Example:
Maintenance fee is ₹7,000 → No GST
Maintenance fee is ₹9,000 → GST will be charged on ₹9,000 (not just on ₹1,500)
👉 Note: Before 25th Jan 2018, the exemption limit was ₹5,000, which was increased to ₹7,500.
📌 Issue 2: If RWA's total income is below ₹20 lakh annually, is GST registration required?
✅ Clarification:
NO, RWAs are not required to register for GST if their total income in a financial year is ₹20 lakh or less. This is true even if they charge more than ₹7,500 per month as maintenance.
GST is applicable only if both conditions are met:
RWA charges more than ₹7,500 per flat/month
RWA’s annual turnover is more than ₹20 lakh
| Annual Turnover | Monthly Charges per Flat | GST Applicable? |
|---|---|---|
| More than ₹20 lakh | More than ₹7,500 | Yes |
| More than ₹20 lakh | ₹7,500 or less | No |
| ₹20 lakh or less | More than ₹7,500 | No |
| ₹20 lakh or less | ₹7,500 or less | No |
📌 Issue 3: Can an RWA claim GST input credit on expenses like repairs, pumps, etc.?
✅ Clarification:
Yes! If the RWA is registered under GST and is charging it to residents, it can claim Input Tax Credit (ITC) on:
Capital Goods (generators, water pumps, furniture)
Goods (pipes, taps, sanitary fittings)
Input Services (repair and maintenance)
👉 This means RWAs can recover the GST they paid while purchasing these goods or services.
📌 Issue 4: If someone owns two or more flats, is the ₹7,500 limit applied per person or per flat?
✅ Clarification:
The ₹7,500 limit is applied per flat, not per person.
🔎 Example:
Mr. Sharma owns 2 flats.
He pays ₹7,500 for each flat = Total ₹15,000.
Since each flat is charged ₹7,500 → No GST is applicable.
If he pays ₹9,000 for each flat → GST is applicable separately on each ₹9,000.
📌 Issue 5: If maintenance charges exceed ₹7,500, is GST applied only on the excess amount?
✅ Clarification:
No, GST is not applied only on the amount above ₹7,500.
It is applied on the entire maintenance amount if it exceeds the limit.
🔎 Example:
Maintenance charge = ₹9,000
GST @18% will be applied on ₹9,000
NOT on just ₹1,500 (₹9,000 – ₹7,500)
This is a common misunderstanding that the tax is only on the extra amount—it’s actually on the full amount once the ₹7,500 limit is crossed.
📢 Final Note from Government
Any difficulty in implementing these guidelines can be reported to the GST Board. These clarifications aim to remove confusion and help both RWAs and residents stay compliant with GST laws.
📞 Need Help for GST on Maintenance Charges by RWA?
At CharteredHelp, we assist RWAs, housing societies, and businesses with:
- Accounting
GST Audit
ITR Filing
- Income Tax Notice Reply
👉 Contact us today for expert support for RWA related compliances.
+91- 92666-85656
CharteredHelp is a team of experienced professionals providing tax, accounting, auditing, and compliance services for businesses and individuals. With over 10+ years of experience, we assist clients with GST registration and filings, income tax returns, company registration, trademark services, accounting, auditing, and handling tax notices. Our focus is on providing practical, reliable, and timely support to help clients stay compliant and grow their businesses with confidence.
