This message is very relevant for you if you reside in a flat or an apartment. An enormous modification in GST rules related to housing society maintenance revenue has been notified by the government, affecting lakhs of residents in India.
According to the new provision, an 18% GST is applicable on maintenance charges exceeding ₹75,000 per month or ₹20 lakh in a year for the society. Therefore, many flat owners have to shell out more money now for maintenance.
Who Will Be Affected by the New GST?
Not every apartment will fall under this new method of taxation. The 18% GST on maintenance charges will only apply if:
- The monthly maintenance cost of an individual flat exceeds ₹75,000, OR
- The total annual maintenance expenditure of the society crosses ₹20 lakh.
Meaning Bangaloreans and others could see quite a big hit financially for cities that house lakhs in apartments like Bangalore, Mysore, Mangaluru, Hubli, and Belgaum. If you’re still unsure whether your flat or the society comes under this income tax, you would have to get it certified at the local commercial tax office by paying a nominal fee of ₹500.
Will GST Apply to All Flats?
Whopping No, the 18% GST on maintenance is not pan-India. It will only impact high-value properties and luxury societies meeting the threshold. If your maintenance charges do not rise above ₹75,000 in a month, then you are unlikely to be troubled by entering this additional tax.
What Other Important Info Should Flat Owners Know on Registration for GST and Return Filing?
The societies coming under the new GST rule have additional compliance requirements as follows:
- GST Registration – Mandatory for societies above the threshold.
- Monthly Return Filing – Payment of GST requires the filing of two returns per month, by the 11th and the 20th.
- Annual Return – Filing of GST returns for the previous financial year is necessary.
This will potentially create another burden, estimated at ₹1-2 lakh for residents, making it essential for the affected flat owners to plan their finances accordingly.
What You Should Do Next?
- Look at Your Maintenance Bill; Check That Your Monthly Bill Exceeds ₹75,000.
- Check With Your Housing Society; Confirm whether the total Maintenance Charges Of Your Society cross ₹20 Lakhs per annum.
- Go to the Tax Office If You Are Skeptical; A Quick Call Will Prevent a Surprise Taxation Emergence