HYDERABAD: Thousands of residents in gated communities across Hyderabad are facing a double financial burden in FY 2026-27 as rising maintenance charges have pushed many households into the 18% GST bracket.
Monthly maintenance fees in several complexes have increased to ₹8,000-₹10,000, up from ₹6,000-₹7,000 earlier. The hike is driven by higher spending on security staff salaries, electricity, clubhouse upkeep, common amenities and water systems. Once the ₹7,500 threshold is crossed, 18% GST is applied on the entire amount as reported by TOI.
Resident Welfare Associations (RWAs) estimate that Hyderabad has nearly 200 gated communities and hundreds of high-rise complexes housing over five lakh households. More than two lakh households are already paying GST on maintenance charges. With the latest hike, another 50,000 households are expected to fall under the tax net.
Monthly household budgets under pressure
The impact on monthly budgets has been immediate. Residents who earlier paid around ₹7,000 now spend an additional ₹3,000-₹4,000 a month, including both higher maintenance charges and GST.
Across western corridor hubs, Kokapet, Gachibowli, Khajaguda, Nanakramguda, Tellapur, Nallagandla and Narsingi, maintenance charges typically range between ₹4 and ₹5 per sq ft, depending on amenities and project size. Many residents said they received revised charge notifications via email and SMS.
"My maintenance cost increased from ₹3.20 per sq ft to ₹4, adding about ₹1,500 per month. On top of that, GST adds another ₹1,400. Earlier, I paid ₹7,000 - now my monthly expense has gone up by nearly ₹3,000," said by a resident of Nanakramguda.
RWAs flag disparity and 'double taxation' concerns
RWAs said the GST structure is creating disparities within the same communities. Maintenance charges vary based on flat size, leaving some residents below the ₹7,500 threshold while others pay GST on the full 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 ₹7,500. It leads to dissatisfaction and disputes within communities," said Sai Ravi Shankar, president of the Federation of Gated Communities, Cyberabad.
Associations also argued that most services such as security, housekeeping and maintenance are outsourced, with vendors already charging GST. Imposing another 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.