The central government has imposed an 18% Goods and Services Tax (GST) on maintenance charges of housing societies where monthly fees exceed ₹7,500 and the society’s annual turnover crosses ₹20 lakh. This new regulation means that many apartment owners in Pune will face significantly higher monthly expenses, intensifying the cost of living in the city.
Residents expressed their frustration, saying the government is "looting the public" by taxing essential maintenance services such as security, cleaning, and repairs. Many fear this additional financial burden will affect their daily lives and budgets, especially in high-rise societies where maintenance costs are already substantial.
GST at 18% applies if monthly maintenance charges per flat exceed ₹7,500 and the society’s annual turnover is above ₹20 lakh.
The tax is levied on the entire maintenance amount, not just the portion exceeding ₹7,500.
Services covered include common area cleaning, security, gardening, and repairs.
Resident Welfare Associations (RWAs) must register for GST and comply with tax filing and invoicing requirements.
Societies with turnover below ₹20 lakh are exempt from GST registration and tax collection.
This GST imposition is expected to increase monthly maintenance bills significantly, causing distress among flat owners. Many Pune citizens have voiced their concerns on social media and local forums, demanding government reconsideration or relief measures. The added tax is seen as an unfair burden on residents who already face rising housing and living costs.
The Ministry of Finance clarified that GST registration and tax collection are mandatory only for societies crossing the specified financial thresholds. RWAs can claim input tax credit (ITC) on GST paid for capital goods and services, which may somewhat offset the tax impact. However, the overall sentiment among Pune residents remains negative due to the immediate increase in out-of-pocket expenses.
