GST regime will roll out from July 1, apartment owners have to pay about 2.5% additional tax on maintenance charges. That tax is applicable on flat owners who pay a maintenance charge of above Rs 5,000, excluding property tax, stamp duty, and electricity and water charges.
According to new GST rules, the existing rate of 15.55% on maintenance charges will be replaced by 18%. The new rate is applicable on housing societies that have an annual corpus or balance of more than Rs 20 lakh, excluding property tax, stamp duty, and electricity and water charges, and also maintenance charges gathered from apartment owners.
Another exception in this is if material, such as cement, steel or paint, is bought for the repair, renovation or maintenance of flats or society’s premises, the tax paid on such material will be deducted from the overall tax paid under GST. An expert said to avail of the adjustment, first GST needs to be paid, and then a credit claimed.

Another exception in this is if material, such as cement, steel or paint, is bought for the repair, renovation or maintenance of flats or society’s premises, the tax paid on such material will be deducted from the overall tax paid under GST. An expert said to avail of the adjustment, first GST needs to be paid, and then a credit claimed.
Under GST there will be a flat 18% tax, under outgoing regime the division was 15% service tax, 0.5% Swachh Bharat tax, and 0.05% non-agriculture tax, totaling 15.55%. Another difference is that while one annual return needed to be filed under the outgoing regime, at least 37 need to be filed under GST.

Under GST there will be a flat 18% tax, under outgoing regime the division was 15% service tax, 0.5% Swachh Bharat tax, and 0.05% non-agriculture tax, totaling 15.55%. Another difference is that while one annual return needed to be filed under the outgoing regime, at least 37 need to be filed under GST.

Housing societies say GST’s main effect will be felt on society corpuses. Additional taxation works out to a net amount that societies stand to lose. The new burden will create further pressure on a society’s corpus.”