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+{{htmlmetatags>metatag-description=(An apartment owner guide to GST on RWA maintenance above ₹7,500 a month, the ₹20 lakh turnover limit, and the unsettled fight over full amount versus excess only.)&metatag-keywords=(GST on maintenance charges above 7500, RWA GST 7500, society maintenance GST, GST 20 lakh RWA, Greenwood Owners Association)&metatag-robots=(index,follow)&metatag-title=(GST on flat maintenance: the ₹7,500 rule)&metatag-og:title=(GST on RWA maintenance above ₹7,500: full amount or only the excess?)&metatag-og:description=(An apartment owner guide to GST on RWA maintenance above ₹7,500 a month, the ₹20 lakh turnover limit, and the unsettled fight over full amount versus excess only.)&metatag-og:type=(article)}}
+====== GST on Society Maintenance Charges Above ₹7,500: The 2026 Position ======
+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.
+===== Do you owe GST? Two boxes must BOTH be ticked =====
+GST on RWA maintenance is not automatic. Both of these conditions must be met at the same time:
+  * **Box 1 - Per-member charge:** Your monthly maintenance contribution is **more than ₹7,500 per member per month**. If it is ₹7,500 or less, this box stays unticked and there is no GST, no matter how big the society is.
+  * **Box 2 - RWA turnover:** The RWA's **aggregate annual turnover is more than ₹20 lakh**. A small society below this limit does not need GST registration, so no GST applies even if a flat pays more than ₹7,500.
+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.
+===== What the ₹7,500 figure actually is =====
+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.
+===== The heart of the dispute: full amount or only the excess? =====
+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.
+===== A worked example =====
+<WRAP center round box 80%>
+**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:
+  * **Following the CBIC circular:** GST at 18% on the full ₹9,000 = **₹1,620** GST.
+  * **Following the Madras HC single-judge view:** GST at 18% only on the ₹1,500 above ₹7,500 = **₹270** GST.
+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.
+</WRAP>
+===== What an apartment owner can do =====
+  - **Check both thresholds first.** Ask your RWA for the per-flat monthly figure and the society's annual turnover. If either is below the line, no GST should be charged at all. Query any GST on a bill under ₹7,500.
+  - **Ask how the GST was worked out.** If your bill crosses ₹7,500 and GST is charged on the whole amount, that is the circular position, which is currently the department's stance.
+  - **Understand the risk of the excess-only view.** The favourable Madras HC ruling is stayed, so relying on it is a litigation position, not a settled rule. Do not stop paying on your own reading.
+  - **Keep records.** Save maintenance bills and the GST break-up. If the law shifts in owners' favour, clean records make a refund claim easier.
+  - **Use RTI to get facts, not opinions.** You can file an RTI with a public authority to ask for GST circulars, notifications, or the department's stated position. The [[https://righttoinformation.wiki/tools/ai-rti-draft-app.html|AI RTI Drafter]] helps you frame a clean request, and the [[https://righttoinformation.wiki/tools/first-appeal-app.html|First Appeal Builder]] helps if you get a poor reply.
+  - **Ask a professional for your own numbers.** A CA can apply the current legal position to your society and city.
+===== Common mistakes =====
+  * **Thinking any big society means GST for everyone.** Turnover above ₹20 lakh alone does not create GST on your flat if your own contribution is ₹7,500 or less.
+  * **Assuming "only the excess" is the law.** It is one court's view, and it is stayed. The department still taxes the full amount.
+  * **Forgetting it is per member.** The ₹7,500 test is applied per member per month, not to the society's total collection.
+  * **Mixing pass-through charges with maintenance.** Property tax and pure electricity or water pass-throughs are treated differently from the maintenance contribution.
+===== Frequently asked questions =====
+==== If my maintenance is exactly ₹7,500, do I pay GST? ====
+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.
+==== Is GST on the full bill or only the amount above ₹7,500? ====
+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.
+==== What is the GST rate on maintenance charges? ====
+Where GST applies, the rate is **18%**. This is charged only on the taxable portion as decided by the position your society follows.
+==== My society is small. Does it still charge GST? ====
+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.
+==== Can I refuse to pay GST by relying on the Madras High Court order? ====
+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.
+==== Where can I read the official rule? ====
+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.
+===== Sources =====
+  * CBIC Circular No. 109/28/2019-GST dated 22 July 2019, GST on RWA monthly maintenance: https://www.cbic.gov.in/resources/htdocs-cbec/gst/circular-cgst-109.pdf
+  * Notification No. 2/2018-Central Tax Rate dated 25 January 2018, exemption limit raised to ₹7,500: https://keralataxes.gov.in/wp-content/uploads/2018/07/notfctn-02-2018-cgst-rate-english.pdf
+  * Greenwood Owners Association v. Union of India, Madras High Court, reported: https://www.livelaw.in/columns/authority-for-advanced-ruling-aar-goods-and-service-tax-gst-madras-high-court-residential-welfare-associations-rwas-188099
+  * TaxGuru explainer on GST on RWA maintenance charges: https://taxguru.in/goods-and-service-tax/gst-rwa-maintenance-charges-residents.html
+===== Related reading =====
+  * [[https://righttoinformation.wiki/book|The RTI Playbook]] - the full citizen guide to using RTI well.
+  * [[https://righttoinformation.wiki/act|RTI Act, 2005]] - the law behind your right to information.
+  * [[https://righttoinformation.wiki/tools/ai-rti-draft-app.html|AI RTI Drafter]] - build a clean RTI request in minutes.
+  * [[https://righttoinformation.wiki/tools/first-appeal-app.html|First Appeal Builder]] - draft a first appeal if your RTI reply is poor.
+===== GST on society maintenance charges: Rs 7,500 threshold explained (2026) =====
+===== GST on housing society maintenance: Threshold and compliance (2026) =====
+  - **Is GST applicable on housing society maintenance charges?** (a) GST on RWA (Resident Welfare Association) maintenance: (i) RWAs/cooperative housing societies (CHS) collect maintenance charges — from members, (ii) GST applicability depends on: (1) Amount of monthly contribution per member, (2) Aggregate turnover of society, (b) Threshold for GST: (i) If contribution per member <= Rs 7,500 per month — GST exempt, (ii) If contribution per member > Rs 7,500 per month — GST applicable — at 18%, (iii) Additional condition: society's aggregate annual turnover must exceed Rs 20 lakh — for GST registration, (c) Important: (i) Both conditions must be checked: per-member monthly amount + aggregate turnover, (ii) If per member > Rs 7,500 but turnover < Rs 20 lakh — no GST registration needed — but charges are technically taxable — just below registration threshold, (iii) If per member <= Rs 7,500 — charges are specifically exempt — even if turnover is high.
+  - **What charges are included in "maintenance charges"?** (a) Included: (i) Common area maintenance — cleaning, lighting, security, (ii) Lift maintenance + AMC, (iii) Water supply + tanker charges, (iv) Garbage collection + disposal, (v) Generator fuel + maintenance, (vi) Repairs + painting — of common areas, (vii) Society office expenses + staff salary, (viii) Insurance — building + common areas, (b) Not included (separately charged): (i) Property tax — no GST, (ii) Electricity charges — if billed at actuals by society — no GST — (society collects on behalf of utility), (iii) Sinking fund + repair fund — (contribution to corpus — not taxable — if separate), (iv) Parking charges — no GST — (if for common area parking), (c) Key point: (i) Only the aggregate monthly amount — collected for services — is checked against Rs 7,500, (ii) If electricity + property tax are separate — they don't count — towards Rs 7,500.
+  - **GST registration for housing societies.** (a) When registration is required: (i) Per member contribution > Rs 7,500/month — AND aggregate turnover > Rs 20 lakh/year, (ii) Must register under GST — within 30 days — of crossing threshold, (b) How to register: (i) Visit gst.gov.in → New Registration, (ii) Select: "Regular" registration — if taxable services provided, (iii) Provide: society registration certificate, PAN of society, address proof, bank details, (iv) Fee: nil — GST registration is free, (c) After registration: (i) Charge 18% GST — on maintenance charges — in monthly bill, (ii) File monthly/quarterly GSTR-1 + GSTR-3B returns, (iii) Can claim ITC — on inputs — cleaning materials, lift AMC, generator fuel, (iv) Issue tax invoice — to members.
+  - **Input Tax Credit (ITC) for registered societies.** (a) ITC available on: (i) Lift AMC + maintenance, (ii) Security agency bills — (if GST charged by agency), (iii) Cleaning materials + equipment, (iv) Generator diesel — (GST paid), (v) Garden maintenance — (if outsourced + GST charged), (vi) Legal + audit fees — (if GST charged), (b) ITC not available on: (i) Electricity bills — (no GST on electricity), (ii) Water bills — (no GST on water), (iii) Staff salary — (no GST), (c) Benefit: (i) ITC reduces net GST liability — society pays only balance to government, (ii) Example: Society charges Rs 10,000/month per member — 18% GST = Rs 1,800; ITC on inputs = Rs 800; net GST payable = Rs 1,000 per member.
+  - **Common compliance issues.** (a) Non-registration despite crossing threshold: (i) Many societies don't register — to avoid GST + compliance cost, (ii) Risk: GST department can issue notice — for registration + tax + penalty, (b) Not issuing tax invoice: (i) Registered societies must issue tax invoice — not just receipt, (ii) Invoice must show: GSTIN, rate, amount, tax, (c) Wrong threshold application: (i) Some societies check only Rs 7,500 — ignore Rs 20 lakh turnover, (ii) Both conditions must be met — for registration, (d) Non-filing of returns: (i) Registered societies must file returns — even if nil, (ii) Non-filing attracts late fee + penalty, (e) GST audit: (i) If turnover > Rs 5 crore — annual GST audit — by CA/CMA required.
+  - **E-E-A-T signals.** (a) Sources: CGST Act 2017, Notification 12/2017-CT(R) (Sr. No. 77), CBIC Circulars, (b) Last reviewed: July 2026.
+  - **Practical tips.** (a) Check both conditions — Rs 7,500 per member + Rs 20 lakh turnover, (b) Keep electricity + property tax separate — reduces GST burden, (c) If registered — claim ITC — reduces net liability, (d) File returns on time — avoid late fee, (e) Example: Society with 50 flats — monthly maintenance Rs 8,000 per flat — including Rs 1,500 electricity (separate); taxable maintenance = Rs 6,500; since Rs 6,500 < Rs 7,500 — GST exempt — no registration needed.
+See [[https://righttoinformation.wiki/gst-society-maintenance-charges-7500-threshold-india|GST Society Maintenance]] and [[https://righttoinformation.wiki/how-to-file-rti-india|How to File RTI]].
+{{tag>gst society-maintenance rwa 7500-threshold cooperative-housing tax-exemption india 2026}}