Hyderabad Flat Owners Struck with Higher GST Rates

Hyderabad Flat Owners: Luxury living has its advantages, but it also has its price. With the Goods and Services Tax (GST) now being charged on flat maintenance over ₹7,500 per month, the residents of high-end apartments in Hyderabad are now paying more. The GST rate on apartment maintenance is currently 18%, which affects both tenants and owners.

GST Effect on Bigger Flats

Hyderabad is famous for its large houses, which tend to be bigger than those found in cities such as Bengaluru and Mumbai. As per Anuragg Jhanwar, Co-founder & Partner at Upwisery Advisors LLP, the GST impact will be more in Hyderabad because of the presence of bigger apartments and integrated townships.

According to Anarock Research, about 70% of the new launches in Q1 2025 were in the luxury and ultra-luxury segments, aggregating to 7,225 units. Houses priced between ₹1.5 crore and ₹2.5 crore comprised a large percentage of these sales.

For Whom Does the GST Burden Lie?

GST on maintenance can be either passed on to tenants or absorbed as part of the rent. When added in the rental agreement, tenants may not experience a direct cost burden. For owners, though, the cost of ownership increases, impacting savings in the long term.

Collection and deposit of GST by the Resident Welfare Association (RWA) or housing society is to be done with the government, facilitating tax compliance.

GST Policy for Housing Societies

Introduced in 2017, the GST on maintenance applies to the entire amount, not just the excess over ₹7,500. This rule was clarified by the Central Board of Indirect Taxes and Customs (CBIC) in 2019. Additionally, if a housing society’s annual maintenance collection exceeds ₹20 lakh, GST becomes mandatory.

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Exemptions for Smaller Complexes

For residents of smaller apartments, GST may not be applicable. Housing societies with a yearly turnover of less than ₹20 lakh are exempt, providing relief to residents in non-luxury properties.

As Hyderabad goes on to build its luxury real estate market further, the extra GST charges imposed on flat maintenance will continue to be a money matter for owners and renters both.