A Bengaluru buyer comparing two flats often studies the price, the loan and the stamp duty, then ignores the monthly line that quietly adds up over decades, the maintenance charge. In a large project with a clubhouse, lifts and landscaped commons, that charge can be high enough to attract a tax most buyers do not expect. Goods and services tax on maintenance is real, but it only applies past specific thresholds, and knowing them tells you whether your monthly outgo carries an extra 18 percent or not.

The short answer. Under the Central Board of Indirect Taxes and Customs circular 109 of 2019, dated 22 July 2019, GST on apartment maintenance applies only when two conditions are both met, the association annual turnover exceeds 20 lakh rupees and the monthly maintenance per member exceeds 7,500 rupees. When both are crossed, the circular position is that 18 percent GST applies to the entire maintenance amount, not merely the part above 7,500. The trade off buyers should note is that a Madras High Court ruling took a softer view for Tamil Nadu, so the harsher full amount reading is the cautious default in Karnataka.

The number to remember is 7,500 rupees a month per member. Below it, maintenance is exempt regardless of the association size. Above it, the tax question opens, and the size of the bill matters.

When does GST actually apply to maintenance charges?

GST bites only when both thresholds are crossed together. If the resident welfare association or apartment association has an annual turnover of 20 lakh rupees or less, maintenance is exempt no matter how high the per member charge. If the monthly maintenance per member is 7,500 rupees or less, it is exempt no matter how large the association turnover. The tax applies only when the association turnover is above 20 lakh and the per member monthly charge is above 7,500. This is why small associations rarely charge GST while large, amenity heavy projects often do. The governing clarification is the CBIC circular 109 of 2019, which a buyer can read directly rather than relying on a builder summary.

Is GST charged on the full amount or only the excess above 7,500?

This is the contested question, and the honest answer is that it depends on which reading applies. The CBIC circular states that once maintenance crosses 7,500 rupees per member, GST is charged on the entire amount, so a charge of 9,000 rupees would attract tax on the whole 9,000, not just the 1,500 above the threshold. However, the Madras High Court in the Greenwood Owners Association case held that only the amount exceeding 7,500 should be taxed. That ruling gives relief in Tamil Nadu, but it has not been adopted as the position everywhere, so a Karnataka buyer should plan for the harsher full amount interpretation and treat the softer reading as a possibility, not a guarantee.

How much can GST add to a Bengaluru maintenance bill?

Where it applies at 18 percent on the full amount, the effect is not trivial. A monthly maintenance of around 9,000 rupees would carry roughly 1,620 rupees of GST on the full amount reading, which is close to 19,000 rupees a year on top of the maintenance itself. Over the years you hold the flat, that is a real cost that belongs in your affordability calculation, especially in premium projects where maintenance is high precisely because the amenities are extensive. When you compare two homes, compare the maintenance and its tax, not just the ticket price, because a lower priced flat with a heavy amenity load can carry a heavier monthly tax than you expected.

Does owning more than one flat change the threshold?

Yes, and this is a point multi flat owners get wrong. The 7,500 threshold is applied per apartment, so if a person owns two flats in the same project and pays maintenance separately for each, the exemption limit is considered for each apartment rather than added together across the owner. That means owning two flats does not automatically push you over the limit through aggregation. The practical takeaway is to confirm how your association bills multiple units, because the treatment of the threshold per apartment can decide whether tax applies to a second unit at all.

What should a buyer verify about maintenance and GST before booking?

Ask for the current monthly maintenance per square foot and the total per member charge, then check it against the 7,500 threshold. Ask whether the association turnover is above 20 lakh, which in a large project it usually is. Ask whether GST is currently being charged and on what base, the full amount or the excess. For an under construction project, remember that the builder may collect maintenance for an initial period, and the tax treatment during that phase can differ from the association run phase later. The related tax you pay on the purchase itself, on an under construction home, is covered in our guide to GST on under construction property, and the handover of common areas ties into our note on deemed conveyance and apartment land title.

When maintenance GST applies, and when it does not

Seven point maintenance and GST checklist

1. Ask for the exact monthly maintenance per member and compare it against 7,500 rupees.
2. Confirm whether the association annual turnover exceeds 20 lakh rupees.
3. Ask whether GST is currently charged and whether it is on the full amount or the excess.
4. Add the tax into your long term monthly outgo when comparing two homes.
5. For multiple flats, check whether the threshold is applied per apartment.
6. Clarify the maintenance and tax treatment during the builder run initial period.
7. Read the CBIC circular yourself rather than relying on a sales desk summary.

Frequently asked questions

At what maintenance amount does GST start applying?

GST applies only when the monthly maintenance per member exceeds 7,500 rupees and the association annual turnover exceeds 20 lakh rupees. If either condition is not met, the maintenance is exempt. Both thresholds must be crossed together for the 18 percent tax to apply.

Is GST charged on the whole maintenance or only the part above 7,500?

Under the CBIC circular of 2019, once the charge crosses 7,500 rupees per member, GST applies to the entire amount, not just the excess. A Madras High Court ruling held that only the excess is taxable, but that relief applies in Tamil Nadu, so Karnataka buyers should plan for the full amount reading.

Does owning two flats push me over the GST threshold?

Not automatically. The 7,500 rupee exemption is considered per apartment when maintenance is billed separately for each unit, rather than added together across the owner. Confirm with your association how multiple units are billed, since that decides whether tax applies to a second flat.

Should maintenance GST affect which flat I buy?

It should factor into your comparison. A premium project with heavy amenities often carries high maintenance that attracts GST, adding to your monthly cost for as long as you own the flat. Comparing homes on maintenance and its tax, not just the purchase price, gives a truer picture of affordability.

Last updated 2026-07-03. PropNewz Team.