Project & Payment
What are Maintenance Charges?
The bill that never stops. Over twenty years it can total more than the stamp duty — and almost nobody asks about it before they buy.
The short answer
Maintenance charges fund the day-to-day running of your building — security, lifts, cleaning, water, common lighting, the gardener, the generator.
Typically ₹2 to ₹6 per square foot per month. If your monthly charge exceeds ₹7,500, 18% GST applies — a threshold most buyers of larger flats cross without realising.
What maintenance charges cover
- Security — guards, CCTV, gate management. Usually the single biggest line.
- Housekeeping — cleaning of lobbies, corridors, staircases, basement.
- Lifts — annual maintenance contracts, repairs, licensing.
- Water — supply, pumping, tanker top-ups where the borewell doesn't cover it.
- Common electricity — lobby lights, lifts, pumps, street lighting.
- Diesel generator — the AMC, and the diesel.
- Sewage treatment plant — running and maintaining it. Mandatory in most large projects.
- Landscaping — gardeners, plants, irrigation.
- Clubhouse, gym, pool — staff, chemicals, equipment servicing.
- Property tax on common areas, insurance, audit and accounting fees.
What it costs
| Type of project | Per sq ft / month | On a 1,200 sq ft flat |
|---|---|---|
| Basic apartment, minimal amenities | ₹1.5 – ₹2.5 | ₹1,800 – ₹3,000 |
| Mid-segment gated community | ₹2.5 – ₹4 | ₹3,000 – ₹4,800 |
| Premium, full clubhouse and amenities | ₹4 – ₹6 | ₹4,800 – ₹7,200 |
| Luxury high-rise, concierge, extensive facilities | ₹6 – ₹12+ | ₹7,200 – ₹14,400+ |
Usually charged per square foot of SUPER BUILT-UP area, not carpet area — so the loading factor costs you every single month, for as long as you own the flat. That is worth pausing on.
₹4,800 a month feels manageable. Over 20 years, with inflation, it is well over ₹15 lakh.
That is more than the stamp duty on many flats. And unlike stamp duty, you pay it forever.
Ask what the maintenance charge is before you fall in love with the clubhouse. The clubhouse is what you'll be paying for.
The ₹7,500 GST threshold
If the maintenance charge for a flat exceeds ₹7,500 per member per month — and the society's annual turnover crosses the GST registration threshold — 18% GST applies.
Below ₹7,500, it's exempt.
So a large flat in an amenity-heavy project can quietly attract GST on its maintenance forever. On ₹9,000 a month, that's an extra ₹1,620 — roughly ₹19,000 a year, indefinitely.
Who collects it — and the handover problem
Initially, the builder maintains the building and collects the charges. They typically collect 12 to 24 months of maintenance in advance at possession.
Eventually, the building must be handed over to a residents' welfare association (or an apartment owners' association / co-operative society, depending on the state). At that point the association takes over maintenance — and the builder must hand over the corpus fund, with accrued interest.
“Has the corpus fund been transferred to the residents' association, and when?“
Builders routinely delay this handover for years. The corpus can run to crores across a large project, and the interest on it is not small.
It is one of the most common — and most winnable — disputes between residents and developers in India. Ask early.
What to check before you buy
- The rate per sq ft. And whether it's on carpet or super built-up area. (It's usually super built-up — so your loading factor bills you monthly, forever.)
- How much advance maintenance is collected at possession. 12–24 months is normal; more is worth questioning.
- Whether the amount crosses ₹7,500 a month — because then GST applies.
- Whether a sinking fund is being collected. If not, expect a large levy in fifteen years when the lifts need replacing.
- In a ready building: talk to residents. Are the charges rising sharply? Is the corpus handed over? Is the association functioning?
- Any outstanding dues on the flat. They can follow the property to you.
Maintenance vs corpus vs sinking fund
| Maintenance charges | Corpus fund | Sinking fund | |
|---|---|---|---|
| What it's for | Running the building day to day — security, lifts, cleaning, water, common lighting | A one-time reserve handed to the residents' association, usually invested; the interest supports running costs | Major repairs and replacement far in the future — the lift in 2040, the roof, repainting the tower |
| How often paid | Monthly (sometimes quarterly) | Once, at possession | Monthly or annually, alongside maintenance |
| Typical size | ₹2 – ₹6 per sq ft per month | ₹50 – ₹200 per sq ft, one time | Often ~0.25% of construction cost per year |
| Refundable? | No — it's a running cost | It belongs to the association, not to you individually. You don't get it back on sale; it transfers with the flat. | No — it belongs to the association |
| Who holds it | The builder until handover, then the residents' association | Must be transferred to the association at handover | The residents' association |
| The thing to check | GST applies at 18% if it exceeds ₹7,500 per member per month (and society turnover crosses the threshold) | Has the builder actually handed it over? This is a very common dispute. | Is one being collected at all? Many societies don't, and pay for it later with a shock levy. |
The corpus fund is the one to watch. Builders collect it from every buyer and are obliged to hand it to the residents' association — with the accrued interest. Many delay for years. Ask, at possession, whether it has been transferred.
Frequently asked questions
How much are apartment maintenance charges in India?
Typically Rs 2 to Rs 6 per square foot per month, depending on the amenities. On a 1,200 sq ft flat that's roughly Rs 3,000 to Rs 7,200 a month. Luxury projects with concierge and extensive facilities can run Rs 6-12 per sq ft or more.
Is GST applicable on maintenance charges?
Yes, at 18%, if the charge exceeds Rs 7,500 per member per month and the society's turnover crosses the GST registration threshold. Below Rs 7,500 it's exempt. Larger flats in amenity-heavy projects cross this line routinely, often without the buyer realising.
Are maintenance charges calculated on carpet area or super built-up area?
Usually super built-up area — which means your loading factor costs you every month, for as long as you own the flat. It's worth confirming in the agreement or the society bye-laws, because on a large flat the difference compounds over decades.
Who collects maintenance charges?
The builder initially, usually collecting 12-24 months in advance at possession. Eventually the building is handed to a residents' association, which takes over — and at that point the builder must transfer the corpus fund with accrued interest. Builders routinely delay that handover, and it's one of the most common disputes in Indian housing.
What's included in maintenance charges?
Security, housekeeping, lift maintenance, water, common electricity, the diesel generator, the sewage treatment plant, landscaping, clubhouse and pool upkeep, plus property tax on common areas, insurance and audit fees. Security is usually the single largest line.