Few topics generate more confusion in committee meetings than GST on maintenance. The rules are actually compact; the confusion comes from how the two thresholds interact. Here is the working version every treasurer should know, with the caveat that your CA has the final word for your society's facts.
The two thresholds
GST touches a housing society only when both of these are crossed:
- The society's aggregate turnover exceeds the GST registration threshold (₹20 lakh a year for services in most states). Below it, the society need not register and GST does not arise at all.
- A member's monthly maintenance contribution exceeds ₹7,500. Contributions up to ₹7,500 per member per month are exempt even for a registered society.
So a small society with modest charges usually stays entirely outside GST. A large society with high charges usually registers and taxes the flats above the line.
The part that surprises people
Once a member's contribution crosses ₹7,500 a month, GST at 18% applies to the entire amount, not just the portion above ₹7,500. At ₹7,600, tax is charged on ₹7,600.
This cliff behaviour comes from the way the exemption is worded and has been backed by tax authority clarifications and advance rulings. It also means a society hovering near the line should model both outcomes before revising charges: a ₹200 increase can cost a member ₹1,400 in tax.
What counts toward the ₹7,500?
Broadly, the recurring maintenance-type charges collected from members count. Property tax and water charges collected purely as a pass-through on actuals are generally treated as outside the calculation, while items like sinking fund and repair fund contributions have nuances your CA should confirm. Keep the heads separate on the invoice; a single lump sum makes every one of these questions harder.
Worked example
| Flat | Monthly charges | GST (18%) | Invoice total |
|---|---|---|---|
| 2 BHK, 900 sq ft | ₹5,920 | ₹0 (under ₹7,500) | ₹5,920 |
| 3 BHK, 1,480 sq ft | ₹8,880 | ₹1,598.40 (on the full amount) | ₹10,478.40 |
Same society, same per sq ft rate, different outcomes per flat: which is why GST must be computed per member, per month, never on the society's total collection.
Treasurer's checklist
- Know your aggregate turnover, including non-member income like tower rent and hall bookings.
- Show each charge head separately on invoices; identify pure pass-throughs.
- Apply the exemption per member per month; watch flats near the ₹7,500 line.
- If registered: file returns on time and pass input credit where eligible.
- Re-check the math whenever the general body revises rates.
GST behaviour in Basaira comes from your society's configuration, not from a hard-coded assumption. Charge heads carry their taxability, the per-member exemption logic is applied at invoice time, and every invoice shows the math: charges, the GST line, the total. When you preview an invoice run, you see exactly which flats cross the line before anything is issued.
Common questions
Our society collects ₹6,000 per flat but our turnover is ₹35 lakh. GST?
Registration may be required because of turnover, but member contributions of ₹6,000 stay exempt under the ₹7,500 rule. Non-member income (hall rentals to outsiders, telecom tower rent) is taxable once registered.
Two flats owned by one member?
The ₹7,500 exemption is generally applied per flat, per authority clarifications. Confirm with your CA.
Can we split the bill to stay under ₹7,500?
Artificial splitting invites trouble in an assessment. Structure charges honestly and let the math be what it is.