With apartments now the default mode of urban living, the government is tapping housing societies to impose 18 per cent GST on monthly maintenance. Experts estimate that around 50 lakh people live in apartments in Bengaluru, and at least another 40 lakh across cities like Mysuru, Mangaluru, Hubballi and Belagavi; and these are only the numbers for Karnataka.
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.
An tax expert says, “Apartment associations can claim input tax credit. But the moment you register, you must stay compliant, every single month. And even if your association isn’t registered with the Cooperative department, GST applies if you meet the criteria,” he said.
Those unsure if their apartment falls under GST can visit the local Commercial Tax office, pay Rs 500, and get an official letter confirming their status. With GST compliance no longer optional, apartment associations will have to get their financial books in order, or get trapped in red tape and penalties.
