Apt society maintenance bill to have 18% gst
government is tapping housing societies to impose 18 per cent GST on monthly maintenance. Some work around is needed so monthly maintenance bill is below 7500.
The GST catch in the 2025-26 Union Budget is the revised regulations for housing societies: If monthly maintenance for an apartment is Rs 7,500 or more, or if the society’s total annual collection exceeds Rs 20 lakh, then GST kicks in. Even if the society collects Rs 20 lakh in a financial year for occasional expenses like painting or replacing the lift, it comes under the GST bracket.
Little wonder that apartment dwellers are pushing panic buttons, having WhatsApp debates and holding meetings on whether they should register under GST. Once registered, it would mean two monthly returns -- on the 11th and 20th of the month -- and annual return.
There is also growing confusion over GST rates. Many assume it’s 5 per cent, but in reality, it’s 18 per cent, which means every apartment complex which touches Rs 20 lakh has to pay Rs 3.6 lakh GST annually, which adds up to Rs 36 lakh in 10 years. Add to it the compliance burden, which means Rs 1-2 lakh for the auditor to help file returns and other statutory compliances, an expert said. more
The GST catch in the 2025-26 Union Budget is the revised regulations for housing societies: If monthly maintenance for an apartment is Rs 7,500 or more, or if the society’s total annual collection exceeds Rs 20 lakh, then GST kicks in. Even if the society collects Rs 20 lakh in a financial year for occasional expenses like painting or replacing the lift, it comes under the GST bracket.
Little wonder that apartment dwellers are pushing panic buttons, having WhatsApp debates and holding meetings on whether they should register under GST. Once registered, it would mean two monthly returns -- on the 11th and 20th of the month -- and annual return.
There is also growing confusion over GST rates. Many assume it’s 5 per cent, but in reality, it’s 18 per cent, which means every apartment complex which touches Rs 20 lakh has to pay Rs 3.6 lakh GST annually, which adds up to Rs 36 lakh in 10 years. Add to it the compliance burden, which means Rs 1-2 lakh for the auditor to help file returns and other statutory compliances, an expert said. more
Viewed by 1440
Absolutely no justification of levying GST on such collections for essential expenses. Large GHS is the order of the day for more efficient management resulting in increased collection. 20 lakhs is too small a limit for such societies. more
Apr 12
