Rising maintenance costs, GST charge hit gated communities hard

Hyderabad: Thousands of residents in gated communities across the city are facing a double financial strain this year, as rising maintenance costs have pushed many households into the 18% GST bracket.In the FY 2026–27, monthly maintenance charges have risen sharply, now ranging between Rs 8,000 and Rs 10,000. This increase is driven by higher expenditure on security staff salaries, electricity, clubhouse upkeep, common amenities, and water systems. Until recently, most residents were paying between Rs 6,000 and Rs 7,000 per month—comfortably below the Rs 7,500 threshold that attracts GST. The latest hike has changed that equation. According to Resident Welfare Associations (RWAs), Hyderabad has nearly 200 gated communities and hundreds of high-rise complexes, housing over five lakh households. Of these, more than two lakh households are already paying 18% GST on maintenance charges. With the recent increase, an additional 50,000 households are expected to fall within the tax net.The impact on monthly budgets has been immediate and significant. Residents who were earlier paying around Rs 7,000 are now spending an additional Rs 3,000 to Rs 4,000 per month, accounting for both the rise in maintenance charges (Rs 1,000–Rs 2,000) and the GST component.Across key residential hubs in the western corridor—including Kokapet, Gachibowli, Khajaguda, Nanakramguda, Tellapur, Nallagandla, and Narsingi—maintenance charges typically range between Rs 4 and Rs 5 per square foot, depending on the scale of amenities and the size of the project. Many residents have already received notifications via email and SMS regarding the revised charges. Residents argue that the combined effect of inflation and taxation is placing considerable pressure on household finances. "My maintenance cost increased from Rs 3.20 per sq ft to Rs 4, adding about Rs 1,500 per month. On top of that, GST adds another Rs 1,400. Earlier, I paid Rs 7,000—now my monthly expense has gone up by nearly Rs 3,000," said Sathwika Reddy, a resident of Nanakramguda.RWAs also point out that the GST structure is creating disparities within communities. Since maintenance charges vary based on flat size, some residents remain below the Rs 7,500 threshold and are exempt, while others must pay GST on the entire amount."For the same services, residents end up paying different amounts. This disparity increases because GST is applied to the full amount rather than only the portion above Rs 7,500. It leads to dissatisfaction and disputes within communities," said Sai Ravi Shankar, president of the Federation of Gated Communities, Cyberabad (FGCC).Associations further argue that most services—such as security, housekeeping, and maintenance—are already outsourced, with vendors charging GST. Imposing an additional 18% on residents effectively results in double taxation."With rising expenses on education, healthcare, loans, and daily living, there is little room for savings. GST on maintenance charges is regressive and disproportionately affects middle-class families, senior citizens, and those on fixed incomes. Residents already pay municipal taxes and statutory levies for many of these services," said VBJ Chelikani Rao, president of the Confederation of RWAs (CoRWA).