Your Resident Welfare Association (RWA) has to charge GST on your monthly maintenance only when TWO things are both true: your contribution is more than ₹7,500 per member per month, AND the RWA's total yearly turnover is above ₹20 lakh. If even one of these stays below the line, there is no GST on your maintenance. When both cross the line, GST at 18% applies. But there is a live dispute about whether the tax falls on the whole bill or only on the part above ₹7,500, and that question is not fully settled.
This guide explains both thresholds in plain words, shows you how to check if your society owes GST at all, and lays out the two competing views side by side so you know exactly where the argument stands.
GST on RWA maintenance is not automatic. Both of these conditions must be met at the same time:
If either box is unticked, you pay no GST. Only when both boxes are ticked does GST enter the picture. This two-part test comes from CBIC Circular No. 109/28/2019-GST dated 22 July 2019, which pulled together the earlier clarifications on RWA maintenance.
Note: Charges like property tax, electricity for your own meter, and water charges that the RWA collects only to pass on to the government or utility are treated separately and are generally not counted the same way as the maintenance contribution.
The ₹7,500 is an exemption limit, not a slab. Maintenance collected from a member up to ₹7,500 a month is exempt from GST. The figure was ₹5,000 earlier and was raised to ₹7,500 with effect from 25 January 2018 through Notification No. 2/2018-Central Tax Rate, which amended the main exemption Notification No. 12/2017.
It is per member, per month. If one person owns two flats in the same society and pays maintenance for both, the ₹7,500 limit is generally applied to each flat separately.
Here is where owners get confused, because the tax department and a High Court have said different things. Both views are set out below. Neither is a settled final answer for the whole country as of 2026.
| The CBIC / tax-department view | The Madras High Court view |
|---|---|
| Source: CBIC Circular No. 109/28/2019-GST dated 22 July 2019. | Source: Greenwood Owners Association v. Union of India, Madras High Court, WP 5518 and 1555 of 2020, judgment dated 1 July 2021. |
| Once the ₹7,500 line is crossed, GST is charged on the ENTIRE contribution, not just the part above ₹7,500. | GST is charged ONLY on the amount ABOVE ₹7,500, not the whole contribution. |
| Illustration in the circular: if maintenance is ₹9,000 a month, GST at 18% is payable on the full ₹9,000, not on the ₹1,500 excess. | On the same ₹9,000, GST would apply only to the ₹1,500 that sits above ₹7,500. |
| This circular is still in force and is what the department follows. | The single-judge order was stayed by a Division Bench of the Madras High Court on the department's appeal, so it cannot simply be relied on as final. |
The honest bottom line: The department follows its circular, which taxes the whole amount. A single judge of the Madras High Court took the taxpayer-friendly view that only the excess is taxed, but that relief was put on hold by a larger bench on appeal. So the question is genuinely unsettled, and the safe answer can differ depending on where you live and how the litigation stands when you read this. Do not treat “only the excess” as a guaranteed right.
Dr. Shrawan Kumar Pathak owns a flat in a large city society. His monthly maintenance is ₹9,000, and the society's yearly collection is well above ₹20 lakh. Both boxes are ticked, so GST applies.
Now the two views split:
That is a big monthly gap. Because the favourable view was stayed on appeal, Dr. Pathak's society plays it safe and follows the circular, but he keeps the paperwork and watches how the dispute develops. This is exactly the kind of situation where a quick word with a Chartered Accountant is worth it.
No. The exemption covers contributions up to ₹7,500 per member per month. GST only enters when the charge is more than ₹7,500, and even then only if the RWA's turnover also crosses ₹20 lakh.
This is the disputed point. The CBIC circular says GST is on the entire amount once ₹7,500 is crossed. The Madras High Court single judge said only the excess is taxable, but that order was stayed on appeal. The issue is unsettled, so check the current position for your area.
Where GST applies, the rate is 18%. This is charged only on the taxable portion as decided by the position your society follows.
If the RWA's aggregate annual turnover is ₹20 lakh or less, it is not required to register for GST, so no GST is charged on maintenance even if a flat pays more than ₹7,500.
Be careful. That order was stayed by a larger bench, so it is not a safe final ruling to act on alone. Pay as billed, keep records, and take professional advice rather than stopping payment on your own.
The core document is CBIC Circular No. 109/28/2019-GST dated 22 July 2019, along with Notification No. 2/2018-Central Tax Rate that fixed the ₹7,500 figure. Both are listed in Sources below.