GST Jolt for Karnataka Apartments: 18% Tax on Maintenance Fees Sparks Outrage

Last updated: 14 April 2025

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Apartment dwellers in Karnataka are facing a significant new financial burden as the 2025-26 Union Budget mandates an 18% GST on monthly maintenance fees. This tax applies if housing societies collect over Rs 20 lakh annually or charge individual residents Rs 7,500 or more per month. The move is causing widespread concern among millions of apartment residents, particularly in Bengaluru, with associations scrambling to understand and comply with the new regulations, which could lead to substantial additional costs and administrative hassle.

As apartments become the cornerstone of urban living in Karnataka, a new financial burden looms large for residents. The 2025-26 Union Budget has introduced a game-changer: housing societies must now impose an 18% GST on monthly maintenance fees if collections exceed Rs 20 lakh annually or if individual maintenance charges are Rs 7,500 or more. With an estimated 50 lakh apartment dwellers in Bengaluru and another 40 lakh across Mysuru, Mangaluru, Hubballi and Belagavi, the policy is sparking wid

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1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

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4499

(Excl. of GST ₹809)

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FAQ :

Housing societies in Karnataka must now impose an 18% GST on monthly maintenance fees if their annual collections exceed Rs 20 lakh or if individual maintenance charges are Rs 7,500 or more.

Apartment dwellers across Karnataka, including an estimated 50 lakh in Bengaluru and 40 lakh in other cities like Mysuru and Mangaluru, will be affected.

No, even one-time expenses like painting or lift replacement that push a society's annual collection past Rs 20 lakh will trigger the 18% GST.

A society collecting Rs 20 lakh yearly could face Rs 3.6 lakh in GST annually, plus an estimated Rs 1-2 lakh in auditing costs for compliance.

Societies need to register for GST, file two monthly returns and one annual return, and maintain proper financial records. Even unregistered associations are liable if they meet the criteria.

Residents can visit their local Commercial Tax office and pay Rs 500 to get an official confirmation of their society's GST status.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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