No GST on Maintenance Charges for Small Apartments Below ₹7,500: FM Clarifies

Graphic stating 'No GST on Maintenance Charges for Small Apartments Below ₹7,500: FM Clarifies' with illustrations of apartment buildings.

Union Finance Minister Nirmala Sitharaman has clarified that residents of smaller apartments, whose monthly maintenance charges do not exceed ₹7,500, are not liable to pay GST, nor are they subject to any GST compliance obligations.

This clarification was issued in response to a Lok Sabha question raised by Members of Parliament Manickam Tagore B and Suresh Kumar Shetkar.

The Finance Minister emphasised that any GST compliance responsibility rests solely with the apartment association, which is considered the service provider. The residents, being recipients of the service, are not required to obtain any GST registration or compliance documentation.

As per the applicable GST provisions:

  • Maintenance charges up to ₹7,500 per month per member are exempt from GST, as per recommendations of the GST Council.
  • The exemption limit was increased from ₹5,000 to ₹7,500 in the past, based on Council deliberations.

Further, apartment associations are required to register under GST only if their aggregate turnover exceeds ₹20 lakhs in a financial year (₹10 lakhs in special category states). Even if registered, they are liable to pay GST only on those units where the monthly charges exceed ₹7,500.

To provide clarity on these matters:

  • The Central Board of Indirect Taxes and Customs (CBIC) issued a circular dated July 22, 2019, explaining the GST treatment of such charges.
  • Additionally, the Ministry of Finance issued press releases on July 13, 2017, and February 7, 2018, outlining the same.

The Minister also clarified that no separate confirmation letter is required under CGST law for residents or associations to prove their GST status.

Regarding past liabilities, the government has extended relief through a notification dated October 8, 2024, whereby taxpayers, including apartment associations, who received notices or orders under Section 73 of the CGST Act for the period from July 1, 2017, to March 31, 2020, may pay only the tax amount due, without interest or penalty, if paid before March 31, 2025.