What is maintenance charges?
Also called: society maintenance, maintenance fee, CAM charges, common area maintenance
Every owner pays maintenance charges, monthly or quarterly, to run the building: security, housekeeping, lifts, common electricity, water pumps, gardening and minor repairs. They are usually billed per sq ft of super or carpet area.
Rates vary more than buyers expect. A plain Pune society without a clubhouse might charge ₹2 to ₹3 per sq ft a month, while a Gurugram high-rise with a pool, a gym, full power backup and a large security team can run ₹5 to ₹8. On a 1,600 sq ft super-area flat, the gap between ₹3 and ₹7 is ₹6,400 a month. Over ten years that's more than most buyers pay as PLC.
Who collects the money changes over the life of a project. For the first year or two after possession, the builder or its facility management company runs the building and usually demands 12 to 24 months in advance at handover. Once the RWA, apartment owners' association or cooperative society takes over, the general body sets the rate. Section 11(4)(d) of the RERA Act makes the promoter responsible for providing essential services at reasonable charges until the association takes over maintenance.
GST catches many owners by surprise. An association's charges are exempt only up to ₹7,500 per member per month. If the monthly bill exceeds that and the association's annual turnover is above ₹20 lakh, 18% GST applies, and the GST department's 2019 clarification says it applies on the whole amount, not only the excess. Maharashtra housing societies split the bill differently again: service charges are shared equally per flat under the model bye-laws, while sinking fund, repair fund and property tax depend on area or construction cost.
Unpaid maintenance follows the flat. Before buying resale, get a no-dues certificate from the society, and check the date from which the builder will start charging you on a new flat. Many agreements start the meter 30 or 60 days after the offer of possession, whether or not you have collected the keys.
A 1,400 sq ft super-area flat in a Gurugram society billed at ₹6 per sq ft pays ₹8,400 a month. Because that crosses ₹7,500 and the society's turnover is above ₹20 lakh, 18% GST of ₹1,512 is added, taking the bill to ₹9,912.
Budgeting only for the EMI. In large NCR and Bengaluru projects, maintenance with power backup and GST can add ₹8,000 to ₹15,000 a month.
Questions people ask about maintenance charges
Is GST charged on society maintenance?
Only when the charge exceeds ₹7,500 per member per month and the association's annual turnover is above ₹20 lakh. Then 18% applies, on the full amount according to the GST department.
Can a builder charge maintenance before I take possession?
Yes, if the agreement says so. Most start charging from a fixed number of days after the offer of possession, so delaying key collection doesn't delay the bill.