East Bengaluru buyer answers

Is GST charged on apartment maintenance in Bengaluru?

By Gaurav Mongia, acre&key · Published 17 Oct 2026 · Updated 17 Oct 2026

Direct answer: CBIC Circular No. 109/28/2019-GST clarifies that RWA maintenance contributions up to ₹7,500 per month per member can be exempt. GST applies only when that monthly contribution exceeds ₹7,500 and the RWA's annual aggregate turnover is ₹20 lakh or more. If the monthly amount exceeds the limit, the circular taxes the entire amount, not only the excess.

Disclosure: acre&key’s advice is free to buyers; we are an authorised sales partner for some projects and may be paid by the developer.

Verify with your lawyer: Builder-collected maintenance before association handover is governed by your agreement and the RERA Act. Have your own property lawyer read those clauses if you dispute a charge.

Verify with your CA: GST registration, invoices, and any dispute about slab versus full-amount taxation are tax facts for your association. This page summarises the CBIC circular and GST Council flyer; it is not a tax opinion for your society.

Monthly maintenance is often the first recurring bill a Bengaluru buyer notices after possession, and in larger complexes common-area power, the STP and security all feed into it. The question is not only "what is the rate?" It is "does GST even apply to my society this year?"

What does CBIC Circular 109 say?

Circular No. 109/28/2019-GST dated 22 July 2019 (Tax Research Unit, Department of Revenue) answers five practical issues on monthly subscription / contribution charged by a Residential Welfare Association (RWA). The circular is hosted on cbic-gst.gov.in.

Key clarifications, in plain language:

1. Exemption ceiling: Supply of service by an RWA (unincorporated body or a non-profit entity registered under any law) to its own members by way of reimbursement of charges or share of contribution up to ₹7,500 per month per member, for goods and services for common use in a housing society or residential complex, is exempt from GST. Before 25 January 2018 the ceiling was ₹5,000; from that date it became ₹7,500 (Notification No. 12/2017-Central Tax (Rate) as amended by Notification No. 2/2018-Central Tax (Rate)).

2. Registration / turnover test: If the RWA's aggregate turnover is ₹20 lakh or less in a financial year, it need not take registration and pay GST even if monthly maintenance exceeds ₹7,500 per member. GST on contributions is required only when monthly subscription is more than ₹7,500 per member and annual aggregate turnover is also ₹20 lakh or more.

3. Entire amount vs excess: The circular's example states that if maintenance is ₹9,000 per month per member, GST is payable on the entire ₹9,000, not only on ₹1,500. That is the CBIC position in Circular 109.

4. Multiple flats: The ₹7,500 ceiling is applied per residential apartment, not per person who owns several flats in the same complex (see the circular's Q4).

5. ITC: Where the RWA is taxable (above the ceiling and registered), the circular discusses entitlement to input tax credit on inputs and services used for supplies to members, a point for the association treasurer and its CA. This page does not go beyond what the circular says.

A GST Council e-flyer on housing societies repeats the same ₹7,500 / ₹20 lakh structure.

What rate applies when GST is payable?

Circular 109's worked example uses GST @ 18% on the full taxable contribution. Treat 18% as the rate used in that official example for RWA maintenance when taxable. If your association invoice shows a different rate, ask your CA to reconcile it against the current rate schedule. Do not rely on a rate from a blog.

There's no special Karnataka-only maintenance GST rate. GST on RWA services is a central framework clarified by CBIC; state SGST pairs with CGST in the usual way on a taxable invoice.

Builder-collected maintenance before association handover

Before the association takes over, the promoter may collect advance maintenance. Whether that collection is billed as a pure deposit, as a taxable supply, or under another invoice pattern is fact-specific. Ask for:

• GSTIN (if any) on the invoice
• HSN / SAC and rate
• Whether the amount is advance against future association dues

Corpus and sinking fund treatment can differ from monthly maintenance. Our page on corpus fund vs maintenance deposit explains who holds each, and hidden costs beyond the base price shows where they sit on a cost sheet. Keep corpus accounting separate in your file.

Why does the CA note matter here?

Some press and professional notes discuss High Court readings that treat the ₹7,500 figure more like a slab (tax only the excess). Circular 109's text taxes the entire amount once the ceiling is crossed. This page doesn't settle that dispute. If your society is in a fight with the department, or if a treasurer wants to follow a court reading, that is a CA / counsel decision with your facts and the latest binding materials, not something a buyer FAQ should settle.

What should East Bengaluru residents check?

In Whitefield, Sarjapur Road, ORR and KR Puram / Old Madras Road societies:

• Ask the committee for last year's aggregate turnover estimate before you assume GST must appear on every bill
• Check whether your flat's monthly contribution (including sinking-fund components if billed together) is being counted toward the ₹7,500 test, because how the bill is split matters
• Keep invoices; resale buyers and lenders sometimes ask for society dues proof
• Remember property tax and BESCOM power charges are separate from RWA GST

For under-construction versus ready-to-move purchase GST (a different topic), see under-construction vs ready-to-move.

What belongs in the monthly contribution figure?

Societies sometimes split the bill into maintenance, sinking fund, water, and special assessments. Circular 109 speaks of monthly subscription / contribution for common-use services. Whether your society counts sinking-fund lines inside the ₹7,500 test is an association accounting choice your CA should review against the circular and the invoices actually raised.

If you own two flats, remember the circular applies the ceiling per apartment. Do not assume one ₹7,500 umbrella covers both units.

What order should residents follow?

1. Read the monthly demand line by line (base maintenance, sinking fund, water) and work out what counts toward the ₹7,500 test.
2. Ask if the RWA is GST-registered and for its GSTIN.
3. If billed above ₹7,500 with GST on the full amount, match that to Circular 109's example; escalate mismatches to a CA.
4. At association handover from the builder, get clarity on who invoices maintenance next.
5. Do not pay large "GST on maintenance" cash to a personal account without a proper tax invoice.

Frequently asked questions

Is maintenance always GST-free below ₹7,500?

Under Circular 109, contributions up to ₹7,500 per month per member for common-use services can be exempt. Confirm your society's facts with a CA, especially if other taxable supplies exist.

What if my bill is ₹8,000 but the society's turnover is under ₹20 lakh?

Circular 109 says that if aggregate turnover does not exceed ₹20 lakh, the RWA need not register and pay GST even when monthly charges exceed ₹7,500. Turnover is an association-level fact; ask the treasurer for the basis.

Is GST only on the amount above ₹7,500?

CBIC Circular 109's example taxes the entire contribution once the ceiling is crossed. Some court discussions take a different view. Mark contested outcomes for CA advice; this page follows the circular's published example.

Does Bengaluru have a different rule from the rest of India?

Not on the face of Circular 109. The circular is a CBIC clarification for RWAs generally. SGST still appears on taxable invoices in Karnataka in the normal way.

Are builder advance-maintenance invoices the same as RWA invoices?

Not necessarily. Promoter billing before handover can differ from association billing after takeover. Keep both paper trails and have a CA read any large GST line before possession payment.

References

1. CBIC Circular No. 109/28/2019-GST (22 Jul 2019), GST on RWA monthly contribution: https://cbic-gst.gov.in/pdf/circular-cgst-109n.pdf, accessed 16 Oct 2026
2. Same circular mirrored on GST Council site: https://gstcouncil.gov.in/sites/default/files/2024-06/circular-cgst-109n.pdf, accessed 16 Oct 2026
3. GST Council flyer, GST on co-operative housing societies / RWAs: https://gstcouncil.gov.in/sites/default/files/e-version-gst-flyers/GST_ON_Co-operative_housing_Societies0509.pdf, accessed 16 Oct 2026

This page explains public rules and processes. It isn't legal or tax advice. acre&key gives buyers advice for free. We are an authorised sales partner for some projects and may be paid by the developer.