In a significant relief for Resident Welfare Associations (RWAs) and apartment owners, the Kerala High Court recently struck down the 2021 amendment related to GST on apartment maintenance charges, calling it unconstitutional. The ruling is expected to reduce the financial burden on thousands of residential communities across India.
Earlier, housing societies collecting monthly maintenance charges above ₹7,500 per apartment were required to pay 18% GST on the entire amount. The court’s decision has now opened the door for RWAs to challenge excessive GST demands and seek greater clarity in tax implementation.
Legal experts believe the judgment will particularly benefit large gated communities and premium apartment societies where maintenance collections often exceed the prescribed threshold due to rising operational costs, security expenses, amenities, and infrastructure maintenance.
The ruling is also expected to improve transparency in apartment maintenance collections and reduce disputes between RWAs and residents over tax liabilities. Many RWAs across metro cities have welcomed the decision, stating that it will help lower maintenance costs for residents and ease the financial pressure on housing communities already struggling with rising expenses.