GST means 2.5% more tax on a flat's maintenance charge
Once theGST regimerolls in on July 1, apartment owners will have to pay about 2.5% additional tax on maintenance charges. The tax is applicable on flat owners who pay a maintenance charge of above Rs 5,000, excludingproperty tax,stamp duty, and electricity and water charges.
Under GST, the existing rate of 15.55% on maintenance charges will be replaced by 18%. The new rate is also applicable on housing societies that have an annual corpus or balance of more than Rs 20 lakh, again, excluding property tax, stamp duty, and electricity and water charges, and also maintenance charges gathered from apartment owners.