Lok Sabha Question No. 109 (STARRED), answered on 2025-07-28
Subject: GST on Apartment Maintenance Charges
Ministry: FINANCE
Asked by: Shri Manickam Tagore B, Shri Suresh Kumar Shetkar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA STARRED QUESTION NO. *109

## TO BE ANSWERED ON MONDAY, JULY 28, 2025/ SRAVANA 6, 1947 (SAKA)

## GST ON APARTMENT MAINTENANCE CHARGES

*109. SHRI MANICKAM TAGORE B: SHRI SURESH KUMAR SHETKAR:

Will the Minister of FINANCE be pleased to state:

- (a) the manner in which the Government ensure that residents of smaller apartments with maintenance charges less than 7,500 are not burdened by the GST compliance requirements;
- (b) the measures taken/to be taken by the Government to address the concerns of residents who are unsure about their apartment's GST status and may need to obtain an official letter;
- (c)  the  manner  in  which  the  Government  ensure  that  apartment associations  are  equipped  to  handle  the  increased  compliance burden and paperwork requirements under GST;
- (d) the rationale behind imposing an 18% GST on apartment having maintenance charges of 7,500 or more, and how will this impact residents;
- (e)  the  manner  in  which  the  Government  provide  clarity  on  the process  for  apartment  associations  to  obtain  an  official  letter confirming their GST status, and the implications of not obtaining such a letter;
- (f)  the  manner in  which the Government address potential issues arising from penalties and fines imposed on apartment associations for non-compliance with GST regulation?

## ANSWER MINISTER OF FINANCE

## SHRIMATI NIRMALA SITHARAMAN

(a), (b), (c), (d), (e) & (f): A statement is placed on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  THE  LOK  SABHA  STARRED QUESTION  NO.  109  RAISED  BY  SHRI  MANICKAM  TAGORE  B  AND  SHRI SURESH KUMAR SHETKAR FOR 28 TH  JULY 2025 ON 'GST ON APARTMENT MAINTENANCE CHARGES'

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- (a): GST rates and exemptions are prescribed on the recommendations of the GST Council, which is a Constitutional body comprising of both the Centre  and  States/UTs.  No  GST  compliance  requirements  have  been placed  upon  the  residents  who  are  the  service  recipients  in  this  case, irrespective of the amount of maintenance paid. Compliance requirements, if at all, are placed upon the apartment associations, who are  the  service  providers.  Moreover,  as  per  the  recommendations  of  the GST Council, services provided by an apartment association (an unincorporated body or a registered non-profit entity) to its own members against maintenance charges up to Rs. 7,500/- per month per member are already exempt from GST.
- (b): As stated above, no GST compliance requirements have been placed upon the residents, irrespective of the monthly maintenance amount paid. The  compliance  requirements  are  placed  upon  the  suppliers,  i.e.  the apartment  associations  who  are  required  to  register  under  GST  if  their aggregate turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs in special category States)  in  a  Financial  Year.  Such  associations  are  required  to  pay  GST only where the maintenance charged is more than Rs. 7,500/- per month per member. On the recommendations of the GST Council, considering the importance  of  the  issue,  the  Central  Board  of  Excise  and  Customs  has issued Circular No.109/28/2019-GST dated 22.07.2019 wherein all relevant aspects pertaining to the issue have been clarified. Further, the Ministry of Finance  has  also  issued  two  press  releases  dated  13.07.2017  and 07.02.2018  to  inform  the  general  public.  This  has  been  done  to  provide clarity  to  the  general  public.  Events  like  Taxpayer  Samvad,  workshops, and  awareness  programs  are  regularly  being  organized  for  information dissemination  and  awareness  through  GST  facilitation  centers.  These initiatives  are  designed  to  help  taxpayers  accurately  assess  their  tax liability.  Further,  there  is  no  requirement  under  CGST  law  to  obtain  any official  letter  by  the  resident  or  apartment  associations  regarding  their apartment's GST status.
- (c): The  compliance  requirement  for  all  persons,  including  apartment associations, are the same under GST, once they cross the threshold for registration.  Apartment  associations  have  not  been  burdened  with  any additional  compliance  requirements  under  GST.  Initially,  services  by  an apartment association to its own resident members against maintenance charges up to Rs. 5,000/- per month were exempt. However, the exemption limit  was  enhanced to Rs.  7,500/-  per  month  per  member  in  accordance with the recommendations of the GST Council in its 25th meeting held on 18.01.2018. Apartment associations having maintenance charges up to Rs. 7,500/- per month per member or having aggregate turnover of goods and services below the threshold need not be registered under GST.

(d): GST rates and exemptions are prescribed on the recommendations of the GST Council, which is a Constitutional body comprising of both the Centre and States/UTs. The services by an apartment association to its own resident members, where the maintenance charges are greater than Rs. 7,500/- are taxed at the rate of 18% on the recommendations of the GST  Council. The  limit of Rs. 7,500/was  also  prescribed on the recommendations  of  the  GST  Council  in  its  25 th   meeting  in  which  a decision  was  taken  to  increase  the  limit  from  the  previous  level  of  Rs. 5,000/- per person per member. (e): Please refer (b) above. (f): If  any due tax has not been paid under the GST Act, the taxpayers are provided with an option to pay either no penalty or reduced penalty provided they are ready to pay the due tax within a specified time period. Furthermore, relief was also provided to those taxpayers vide Notification No.  21/2024-Central  Tax,  dated  8 th   October,  2024,  issued  under  Section 128A of the CGST Act, who have received notices or orders under section 73  of  the  CGST  Act  pertaining  to  the  period  from  1 st   July,  2017  to  31 st March,  2020,  so  as  to  make  payments  for  tax  payable  with  waiver  of interest  or  penalty  until  31 st   March,  2025.  Apartment  associations  who were  falling  in  such  category  were  eligible  to  avail  benefits  of  Section 128A.

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