Society Maintenance Charges: What You Pay and Why (2026)

Two flats of the same size in the same city can pay ₹1,500 and ₹9,000 a month in maintenance — and both can be perfectly fair. The difference is not overcharging; it is what the money runs. A walk-up building with a watchman and a sweeper costs little to keep; a gated township with lifts, a pool, a gym, landscaped gardens, standby generators and round-the-clock security costs a great deal, and every flat shares that cost. Maintenance is simply the running cost of everything a family owns in common with its neighbours, divided among the flats. Understanding how it is divided, what it buys, and when tax is added is how an owner judges whether a bill is reasonable.

What society maintenance covers

Maintenance is the pooled running cost of the shared parts of the building — the parts no single flat owns alone. The bill usually bundles several heads, and a well-run society shows them separately so owners can see where the money goes.

How the charge is calculated

There are three common methods, and the bye-laws or a general-body resolution decide which a society uses. The most common for apartments is the per-square-foot method: each flat pays a fixed rate multiplied by its area, so a larger flat pays more. The second is the equal method, where every flat pays the same amount regardless of size, often used for services everyone uses equally, such as security and a watchman. Many societies use a hybrid — area-based for most heads, and equal for a few — which is widely regarded as the fairest. Separately, a sinking fund (and sometimes a repair fund) is collected monthly and set aside for large, infrequent works — painting the building, repairing the lift, redoing waterproofing or plumbing years later — so that the society is not forced into a sudden large levy when a big repair falls due. Model bye-laws in several states set a minimum sinking-fund contribution as a small percentage of construction cost per year; the exact figure is fixed by the society's bye-laws and resolutions.

The GST rule: the ₹7,500 threshold

Goods and Services Tax is where owners are most often confused, so the rule is worth stating plainly. GST at 18 per cent applies to society maintenance only when two conditions are both met: the maintenance charge is more than ₹7,500 per month per flat, and the society's (or RWA's) total annual turnover is more than ₹20 lakh. If the per-flat charge is ₹7,500 a month or less, it is exempt from GST even if the society's turnover is large. If the charge crosses ₹7,500, GST is levied on the whole amount, not only on the part above ₹7,500 — so a charge of ₹8,000 attracts 18 per cent on the full ₹8,000. A flat owner who holds more than one flat in the same society is generally assessed per flat. These thresholds are set by government notification and can change, so confirm the current position with the society or a tax professional before relying on it.

Is your maintenance reasonable?

A maintenance charge is reasonable when it matches what the society actually runs, is divided by a method the bye-laws approve, and is shown head-wise so owners can see where the money goes. A high charge in an amenity-rich township is not overcharging; a low charge in a bare building is not a bargain if the lift is failing and no sinking fund has been built. The questions to ask are simple: what method is used, what does each head cost, how big is the sinking fund and what is it for, and is GST being applied correctly against the ₹7,500 threshold. A society that can answer those clearly is almost always being run well.

Frequently asked questions

How much is society maintenance per square foot in 2026?

Indicatively, about ₹2–5 per sq ft a month for a basic society, ₹5–8 for a mid-amenity one, and ₹8–12+ per sq ft for a premium society with a clubhouse, pool, gym and multiple lifts. These are broad 2026 ranges and vary a great deal by city and project — a large township with heavy amenities and standby power can sit above the top of this band, while a simple walk-up can be below the bottom. The charge should reflect what the society actually maintains, so ask for a head-wise break-up rather than comparing a bare per-sq-ft number with another society's.

When is GST charged on maintenance?

Only when both conditions are met: the maintenance is more than ₹7,500 per month per flat and the society's annual turnover is above ₹20 lakh. At ₹7,500 or less per flat it is exempt regardless of turnover. When it does apply, the 18 per cent GST is charged on the full amount, not just the part above ₹7,500. These thresholds are fixed by government notification and can change, so confirm the current rule with your society or a tax professional.

What is a sinking fund and is it extra?

A sinking fund is a monthly amount collected on top of the running maintenance and saved for large, infrequent works — external painting, lift replacement, waterproofing, major plumbing — so the society can pay for them from savings rather than hitting owners with a sudden large levy. It is a genuine protection, not a padding: a society with no sinking fund is one large repair away from an emergency collection. Model bye-laws in several states set a minimum contribution as a small percentage of construction cost per year, with the exact figure fixed by the society's own bye-laws and resolutions.

Does a bigger flat always pay more maintenance?

Under the per-square-foot method, yes — a larger flat pays more because the charge is its area times the rate. Under the equal method, every flat pays the same regardless of size, which some societies use for services everyone consumes equally, such as security. Many societies use a hybrid of the two, which is generally seen as the fairest. Which method applies is decided by the bye-laws or a general-body resolution, so check those to understand your own bill.