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LoansJagat Team

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25 Sep 2025

GST on Maintenance Charges – Updated Guide for Taxpayers

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Key Highlights

Under the latest GST amendments, there are no changes in the GST on maintenance charges. It is still charged at 18%.
If the total maintenance charges are up to ₹7,500/member per month and the total annual turnover is up to ₹20,00,000, then GST is levied.
Each service has a unique six-digit Sac code. This is important in GST filing and ITC.

Maintenance Charges are paid by residents living in common areas for shared amenities like security, cleaning, landscaping, elevators, repairs, etc. GST on maintenance charges remains at 18% with the same exemption limit (₹7,500/month per member).

For example, Meera pays ₹8,000 monthly maintenance. GST of ₹1,440 (18% of ₹8,000) is added, so she pays ₹9,440 in total.

Calculation:

GST = 18% of ₹8,000

= 1,44,000/100 = ₹1,440

Total Payment = ₹8,000 + ₹1,440

= ₹9,440

Since the total amount is more than ₹7,500, 18% GST is applied. If it were less than the set amount (₹7,500), 0% GST would be applied.

GST on maintenance charges were not changed by the government, but that does not make it a less important topic. So, let’s read about the exemptions, ITC impact and more in this blog.

Exemptions for GST on Maintenance Charges

As stated earlier, if the total maintenance charges are below ₹7,500, you don’t have to pay GST. Similarly, there are other thresholds and exemptions for GST on Maintenance charges. We have listed them in the table given below.

Point	Rule / Explanation
₹7,500 Monthly Exemption per Member	Services for security, cleaning, repairs, etc., are not liable to GST on the first ₹7,500/month per member. Earlier, the limit was ₹5,000, which was changed in January 2018.
Annual Turnover Threshold	If RWA (Residents’ Welfare Association) turnover is equal to or more than ₹20,00,000 (₹10,00,000 for special category states), no GST registration or levy, even if charges exceed ₹7,500.
Multiple Flats Rule	₹7,500 limit is per flat. So, the total will be ₹15,000 for 2 flats. And if maintenance charges are ₹7,000 each, no GST on either.
GST on Entire Amount	If maintenance charges exceed ₹7,500, GST applies to the full amount, not just the excess.
Exempt Components	Statutory levies like property tax, water/electricity charges are excluded from the ₹7,500 calculation.
Taxable Components	Contributions for sinking/repair fund, parking, clubhouse, and late fee interest are included in the ₹7,500 calculation.
No Certificate Needed	Exemption is automatic; no separate application or certificate required.

For calculating GST on maintenance charges, you have to remember the ₹7,500 monthly limit and the ₹20,00,000 turnover threshold. If either limit isn’t crossed, residents don’t owe a single rupee in GST.

For example, Ramesh lives in a housing society in Pune. His society’s annual turnover is ₹18,00,000. He pays ₹8,000/month in maintenance, including ₹2,000 of this is property tax (a statutory levy).

Let’s see if Ramesh has to pay GST with the help of the table given below:

Particulars	Amount (₹)	GST Applicability
Monthly maintenance charged	8,000	Considered for GST
Less: Statutory levy (property tax)	2,000	GST-exempt, excluded
Taxable amount	6,000	Below ₹7,500, no GST
Society's annual turnover	18,00,000	Below ₹20,00,000, no registration
Final GST payable	0	No GST due

Ramesh doesn’t pay GST because the taxable amount is under ₹7,500 and his society’s turnover is below ₹20,00,000.

SAC / Service Codes for Maintenance

Have you ever seen your maintenance bill? It has strange numbers like 998525 or 995419; those are SAC (Services Accounting Codes). It is a way of tagging every service so that they can be taxed accordingly.

In the following table, we have given SAC codes for different services, so that you can check your charges this month.

Service Type (Maintenance Item)	Typical SAC / Chapter	Notes
Building repairs/maintenance (general)	SAC 995419 (services involving repair, alterations, and maintenance of buildings)	Use the exact SAC from GST registration. RWAs/builders should update their service codes to cover building maintenance.
Cleaning / Housekeeping / Janitorial	Chapter 99 (Maintenance services), e.g. SAC 998531 to 998539 (various cleaning services)	Ensure vendor invoices use the correct SAC (e.g. general cleaning, window cleaning, etc.). All cleaning services attract 18% GST.
Security (guards, CCTV monitoring)	SAC 998525 (Guard services) (also 998523 for security systems)	Security services are taxable at 18%. Verify the SAC on invoices matches your registration (guard/security services). Vendors must issue GST invoices.
Facility management / Clubhouse services	Chapter 99 (e.g. facility management, community services SAC codes)	Clubhouse/facility charges are taxable if overall maintenance exceeds the threshold. Distinguish club membership fees (may be exempt) vs. service charges on invoices.

Chapter 99 means that we are stating the SAC codes for services. The next 2 digits show the major category of that service, and the last 2 digits give a more detailed breakdown.

For RWAs, builders, and vendors, using the right SAC codes is really important. They can charge the correct GST percentage, file returns easily, and help residents claim Input Tax Credit (ITC) without headaches.

Types of Maintenance & GST Applicability

Security, cleaning, repairs, and parking are taxable at 18% if both limits (₹7,500 and ₹20,00,000) are crossed. In this table, we have simplified whether a particular service is taxable or not.

Maintenance Line-Item	Is GST Applied?
Security (guards, CCTV)	Yes (if taxable RWA/vendor)
Housekeeping / Cleaning	Yes (subject to threshold) (Taxable when RWA is registered (turnover > ₹20,00,000) and maintenance > ₹7,500. )
Repair & Replacement (materials + labour)	Yes
Sinking Fund / Corpus / Deposits	Typically No (Treated as capital contribution or security deposit, not payment for a service)
Statutory Pass-Throughs (property tax, municipal taxes, water charges)	No
Parking / Commercial amenity charges	Yes (if billed as service) (Considered part of maintenance service.)

Match the correct SAC codes with the services and check if the bill is right or not? ‘Grahak hai aap! Haq hai aapka!’

How does GST Impact Maintenance?

GST on maintenance charges affects everyone involved in the chain, including residents, RWAs, and vendors. Let’s explore this effect on each stakeholder in detail in this section.

Stakeholder	Impact	Example
Residents	Monthly maintenance charges rise by 18% GST. Extra budget needs to be allocated.	A ₹10,000 bill collects ₹1,800 GST. So, the total becomes ₹11,800. Also, the payments shift from simple fees to tax invoices.
Societies/RWAs	Here are the duties they need to perform: Must register for GST if both the thresholds are crossed (₹20,00,000 and ₹7,500). Issue tax invoices, file GSTR-1 & GSTR-3B, and manage ITC claims. Segregation of taxable/non-taxable charges is essential.	An RWA with 120 flats charging ₹9,000/month collects ₹10,80,000 monthly and ₹1,29,60,000 annually. So, the GST in a year will be: ₹23,32,800 (18%)
Vendors (security, cleaning, contractors)	Vendors must issue GST invoices, complete with SAC codes and GSTIN, for the services they supply	A cleaning contractor bills ₹1,00,000 with 18% GST added (₹18,000). The invoice becomes ₹1,18,000 total.
Market/Policy Updates	RWAs want extra. For example, in Gurgaon, RWAs are demanding a reduction from 18% to 5% GST on maintenance charges and raising the exemption threshold from ₹7,500 to ₹10,000/month because of essential service status.	If the exemption rose to ₹10,000/month, an owner paying ₹9,500/month would save ₹1,710/month (18% of ₹9,500). This is a huge relief for taxpayers.

GST on maintenance charges increase the overall cost. However, with policies and exemptions, most residents get relief from these costs.

Do you know that over 70,000 cooperative housing societies in Maharashtra exceed ₹20,00,000 turnover and thus fall under GST? This shows that many societies in India fall under the tax slab.

Also, there are approximately 50,000 cooperative housing societies in Karnataka, especially in Bengaluru and Mysuru, that may need GST registration if annual collections exceed ₹20 lakh.

Input Tax Credit (ITC) on Maintenance

Input Tax Credit (ITC) using credits from vendor payments to reduce tax liability for GST payers. When societies pay GST on services like security or cleaning, that amount becomes a claimable credit.

For example, a society collects ₹1,00,000 + ₹18,000 GST from members as maintenance charges. It pays vendors ₹40,000 + ₹7,200 GST for cleaning and security services. The ₹7,200 GST becomes ITC. So, the society pays only ₹10,800 to the government, not the entire ₹18,000.

In the table below, we have shown who can claim ITC and who cannot.

Subheading	Explanation	Key Points
Who can claim ITC	Registered and taxable RWAs/societies can claim ITC on GST.	Must be GST-registered. Only GST on valid vendor invoices with GSTIN & SAC is claimable. Inputs should directly relate to taxable supplies.
What cannot be claimed?	ITC is not available for exempt supplies (e.g., contributions up to ₹7,500 per member per month) or statutory charges like property tax and municipal water charges.	Exempt receipts require ITC reversal/apportionment. No ITC on property tax, water bills. Mixed supplies require proportionate ITC reversal.

If you are a registered member, you can collect ITC if the total service cost is more than ₹7,500. This is after excluding property taxes and other statutory amounts.

Conclusion

GST on maintenance charges remains at 18%. There were no changes as per the new tax regime introduced on 3rd September, 2025. However, if your monthly service per member is more than ₹7,500 and the society’s annual turnover exceeds ₹20,00,000, statutory levies are excluded and GST is applicable. Societies must register, issue tax invoices, and manage ITC as per the SAC codes to avoid compliance issues and penalties.

Frequently Asked Questions

1. What happens if a society misses GST filing deadlines?

If a society misses GST filing deadlines, it must pay a late fee of ₹50 per day (₹25 CGST plus ₹25 SGST) up to ₹10,000, along with interest at 18% per annum.

2. Is GST payable on advance maintenance or advance collections?

For service advances, GST becomes due when payment is received or service is provided, whichever is earlier.

3. Are capital works (major repairs/renovation) treated differently?

Capital works attract GST separately on both construction goods and service components, depending on their classification.

4. How is GST handled for non-resident or out-of-state members?

The place of supply rule determines tax, and cross-state services may attract IGST based on location.

5. Is interest or late-payment charge included in the ₹7,500/month threshold for GST on society maintenance, or is it outside the limit?

Interest/late-payment charges are taxable under GST, but are not counted in the ₹7,500/month exemption threshold.

6. What about the reverse charge mechanism (RCM) for vendors?

RCM does not usually apply to society vendor services unless specified in government notifications.

7. Do RWAs have an option to use the composition scheme?

RWAs generally cannot use the composition scheme because their services are usually taxable under the regular GST regime.

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.