GST Worries for Apartment Residents

Apartments have become the most common way of living in cities. Now, as per Reports the government is planning to collect 18% GST on monthly maintenance from housing societies. Experts say about 50 lakh people live in apartments in Bengaluru. Another 40 lakh live in cities like Mysuru, Mangaluru, Hubballi, and Belagavi. These numbers are just for Karnataka.

The 2025-26 Union Budget includes a new rule. If the monthly maintenance charge is Rs 7,500 or more, or if a housing society collects more than Rs 20 lakh in a year, GST will be applied. Even if the money is collected only once in a year for big jobs like painting or lift replacement, the society must pay GST.

Because of this, many apartment residents are worried. They are chatting on WhatsApp and holding meetings to decide if they should register for GST. If they register, they have to file two returns every month—one on the 11th and another on the 20th. They also have to file an annual return.

There is also confusion about the GST rate. Some think it is 5%, but it is actually 18%. So, if a housing society collects Rs 20 lakh, it will need to pay Rs 3.6 lakh in GST every year. Over 10 years, this adds up to Rs 36 lakh. On top of that, hiring an auditor for filing returns and other paperwork could cost another Rs 1 to 2 lakh a year, according to experts.