What do society maintenance charges actually include?

Society maintenance charges typically include lift AMC, generator diesel, common area electricity, security and housekeeping staff, water supply and pumping, and a contribution to a sinking fund for major repairs in the future. The requirement to pay these charges is outlined in Section 11(4)(g) of the Real Estate (Regulation and Development) Act, 2016, and Section 6 of the Maharashtra Ownership of Flats Act, 1963 (MOFA) for projects in Maharashtra. These charges apply whether or not the unit is occupied.

Why are maintenance charges higher in large townships?

Township charges are higher because they fund a larger range of shared infrastructure, including internal roads, landscaped gardens over several acres, a central clubhouse with pools and gyms, common utilities management, and security across multiple gates. The charge increases with the amount to be maintained, which is usually higher in a township than in a standalone building.

Are clubhouse and amenity maintenance charges mandatory?

In most RERA-registered projects, common-area and amenity maintenance is included in the overall maintenance charge that every resident is required to pay as part of ownership, regardless of how often they use the amenities. Buyers should confirm with the specific developer whether any additional facilities have separate charges.

How are maintenance charges calculated in residential projects?

Three common methods are used: per-square-foot (larger units pay more), equal division (every unit pays the same), and a hybrid model (a fixed base charge for shared costs, plus an area-based variable charge). RERA requires that the method used be transparent and disclosed to buyers before they purchase. Rates typically range from ₹2 to ₹25 per sq. ft per month, depending on amenities.

What is covered under common area maintenance?

Common area maintenance covers shared spaces and systems used by all residents. This includes lobbies, corridors, lifts, and common lighting. In a township, it also covers internal roads, landscaping, the clubhouse, shared utilities such as water treatment and waste management, and security at shared entry points.

What should homebuyers check before purchasing in a township?

Ask for an itemised maintenance breakdown rather than a single number. Clarify whether amenity maintenance is bundled or separate. Check whether the quoted rate is a pre-possession estimate or based on an operational phase. Understand the sinking fund structure. Finally, ask how charges may change as the township is delivered in phases and occupancy increases.

Why do luxury residential projects have higher maintenance fees?

Higher fees in luxury and amenity-rich projects directly reflect the cost of operating the amenities they offer. This includes pool maintenance and lifeguard staffing, gym equipment AMCs, larger landscaped areas that require horticulture teams, and more extensive security and housekeeping across bigger campuses. The fee represents the ongoing cost of the amenities that distinguish the project.

Does GST apply to society maintenance charges?

GST on society maintenance charges applies only when two conditions are met at the same time: (a) the society's total annual turnover exceeds ₹20 lakh, and (b) each member's monthly contribution exceeds ₹7,500. If both conditions are met, 18% GST is charged on the entire maintenance amount, not just the part above ₹7,500, as stated in CBIC Circular No. 109/28/2019-GST. For example, if maintenance is ₹9,000 per month, GST at 18% (₹1,620) applies on the full ₹9,000, not just on the ₹1,500 excess. If either condition is not met, no GST applies to maintenance charges.