Builders Charge GST on Maintenance Despite Being Exempt

GST impact on the Maintenance Bill

Home buyers of Supertech Eco Village-1 are worried and feeling helpless as their builder has charged 18% GST on their maintenance bill. This is despite the fact that their monthly maintenance charges are barely Rs 2000 rupees a month. As per the Goods and Services Tax law, maintenance charges upto Rs 5000 a month are exempt from GST. Although the Finance Ministry has issued a clarification, this arbitrary calculation of GST done by the builder has left home owners like Sumeet Saxena confused.

Sumeet, a resident of Supertech Eco Village says, "Three or four societies in Greater Noida West have started charging 18% GST on maintenance charges. They have sent messages to us and have started deducting the money."

Deepal Diwedy of the same housing society says, "The builder Supertech is making undue profits. GST has caused a lot of confusion. We do not know where to go."


But the builder has his own explanation, M K Arora, CMD of Supertech says, "If the builder or any company appointed by the builder is taking care of the facilities and maintenance, all residents have to pay GST whether its Rs 2000 or Rs 5000."

Recently a clarification issued by the Finance Ministry reiterated that the supply of service by RWA, unincorporated body or a registered non- profit entity, to its own members by way of reimbursement of charges up to an amount of five thousand rupees per month per member for providing services and goods for the common use of its members in a housing society or a residential complex are exempt from GST. RWAs will have to pay GST on monthly contributions over than Rs. 5000 per member and if the annual turnover of RWA is over Rs. 20 lakhs. 

Suyash Pandey, resident of Stellar Jeevan in Greater Noida West says, "Exempt maintenance from GST. Just like Municipalities provide services to the people, societies are also providing services to the residents. Why charge GST from them?"

The confusion regarding the impact of GST on property prices is not over yet and now there is this added confusion of GST on maintenance charges. Despite the best efforts of the government and the GST masterclasses being organised by the Finance Ministry, the confusion regarding GST rates remians unresolved.


Leave a Reply

Your email address will not be published. Required fields are marked *

14 thoughts on “Builders Charge GST on Maintenance Despite Being Exempt

  1. What if no of flats are high, average flat size is small so does the maintenance charges, but annual turn over of the RWA society may shoot above 20 Lakhs? Then since they have to pay on whole 20L, therefore builders might have taken that. Need clarification from govt on small small issues, it high time Mr. Jatley and team.I am also a flat owner, not a builder

  2. Not sure if comments on these page are iven any importance, however, any housing society more than 100 units will defiently fall under GST ans annual collection will be more than 20L.It is illogical

  3. Skytech Builder is charging unjustified maintenance charges plus GST on that.As per GST policy GST is applicable on maintenance more than RS 5000. Please clarify is GST is applicatble if Builder is running the maintenance in society.

  4. Our builder has started charging GST on maintainance @18% from the month of July 2017. Monthly maintenance charges are below ₹2000/-. The builder does not mentioned GST registration number on the Demand Note.Kindly enlighten me from the existing rule position whether the builder in the above quoted example is correct.

  5. Our builder -Shriram Property' is providing building maintenance service from 2012 to till date and asking GST on monthly Rs.2300 maintenance charge. Also they applied GST on penalty charges.If we aksed the explanation they are saying builder is providing service and you have to pay every penny under GST.

    Do we have any rules how long builder can provide the maintenance services? This is already 7th years of the building, but they are not ready to leave.

  6. I am also confused because our builder Terhan Home Developers is also charging GST @ 18% on maintenance bill of amount 1500-2000 Per monthS K YadavHill View Garden Bhiwadi

  7. Our builder use to give us total bill if 2100 till 2 month back aa maintainence. Now he is bifurcated in water ,electricity , security n other items. Charged gst on security n other items. Total invoice was 2100 but it is 2208. Will h i have to pay gst 

  8. FINANCIAL BREAKTHROUGHLife indeed is GRACE, I'am Daan Sophia currently in California USA. I would like to share my experience with you guys on how I got a loan of $185,000.00 USD to clear my bank draft and start up a new business. It all started when i lost my home and belongings due to the bank draft I took to offset some bills and some personal needs. I became so desperate and began to seek for funds at all means. Luckily for me I heard a colleague of mine talking about this company, I got interested although i was scared of being scammed, I was compelled by my situation and had no choice than to seek advise from my friend regarding this very company and was given their contact number, getting intouch with them really made me skeptical due to my past experience with online lenders, little did i know this very Company "PROGRESSIVE LOAN INC. was a godsent to me and my family and the entire Internet World, this company has been of great help to me and some of my colleague and today am a proud owner of well organized business and responsibilities are well handled all thanks to Josef Lewis of ( So if really you are genuinely in need of a loan either to expand or start up your own business or in any form of financial difficulty, i advise you give Mr Josef Lewis of Progressive loan the opportunity of financial upliftment in your life  Email:  OR Call/Text +1(603) 786-7565  and not fall victim of online scam in the name of getting a loan. thanks

  9. Greetings..Attention! Attention!! Attention!!!,What is your situation? *Need 100% financing *Can't verify income *Can't verify employment *Recently self employed *Bankruptcy Collections *Credit issues *Accumulated Bills Settlement * Personal Investment Project or Company Investment Projects e.t.c. Apply for a quick and convenient loan to pay off bills and debts, start a new business or refinance your projects and expand your business  at the cheapest interest rate of %. For more details email us today via email( or call us now (803) 373-2162
    Please contact us for your secure and unsecured Loan at an Interest rate of 2% Is the difficulty of the economy affecting you this year, is your bank refuses to give you a loan for the christmas? If your answer is yes, then you need a loan.We offer safe and secure loans at an interest rate of 2%.* Are you financially squeezed?
    * Do you seek funds to pay off credits and debts?
    * Do you seek finance to set up your own business?
    * Are you in need of private or business loans for various purposes?
    * Do you seek loans to carry out large projects?If you have any of the above problems, we can be of assistance to you but I want you to understand that we give out loans at the interest rate of 2%.* Borrow anything up to $95,000,000 USD.
    * Choose between 1 to 20 years to repay.
    * Choose between Monthly and Annual repayments Plan.
    * Flexible Loan Terms.
    Please if you are interested check back with us through this email address: or call us now (803) 373-2162

    i'm here to testify about MR CLIFFORD blank atm cards which can withdraw money from any atm machines around the world. I was very poor before and have no job.I saw so many testimony about how CLIFFORD send them the ATM blank card and use it to collect money in any ATM machine and become rich. I email her also and he sent me the blank card. I have use it to get $80,000 dollars, withdraw the maximum of $10,000 daily. CLIFFORD is giving out the card just to help the poor. Hack and take money directly from any ATM Machine Vault with the use of ATM Programmed Card which runs in automatic mode. email ( on how to get it. He will gives out the card to anybody email CLIFFORD today and become rich….