HYDERABAD: Residents in gated communities throughout the city are grappling with increased financial pressure this year, as surging maintenance costs have pushed many into the 18% GST tax bracket.
For the fiscal year 2026-27, monthly maintenance fees have escalated significantly, now falling between Rs 8,000 and Rs 10,000. This spike is attributed to rising expenses including security personnel salaries, electricity bills, clubhouse maintenance, common facilities, and water supply systems. Previously, many residents paid around Rs 6,000 to Rs 7,000 per month, comfortably below the Rs 7,500 threshold that triggers GST. However, the latest increase has altered the situation.
According to Resident Welfare Associations (RWAs), Hyderabad is home to nearly 200 gated communities and numerous high-rise buildings, accommodating over five lakh households. Of these, more than two lakh households are already subject to 18% GST on maintenance costs, and an additional 50,000 households are expected to join them following the recent hike.
The financial impact on monthly budgets has been both immediate and substantial. Residents used to paying around Rs 7,000 are now facing an extra Rs 3,000 to Rs 4,000 monthly, stemming from both the rise in maintenance charges (by Rs 1,000 to Rs 2,000) and the GST addition.
In key residential areas within the western corridor—such as Kokapet, Gachibowli, Khajaguda, Nanakramguda, Tellapur, Nallagandla, and Narsingi—maintenance fees typically vary between Rs 4 and Rs 5 per square foot, depending on amenities and project size. Many residents have already received notifications regarding the updated charges via email and SMS.
Residents express concern that the combined burden of inflation and taxation is straining their finances. Sathwika Reddy, a resident of Nanakramguda, stated, “My maintenance cost increased from Rs 3.20 per sq ft to Rs 4, which adds about Rs 1,500 monthly. On top of that, GST adds another Rs 1,400. I used to pay Rs 7,000—now my monthly expenses have increased by nearly Rs 3,000.”
RWAs also highlight that the GST structure creates inequality within communities; maintenance charges vary by flat size, resulting in some residents being exempt from GST while others are liable for the entire amount.
As Sai Ravi Shankar, president of the Federation of Gated Communities, Cyberabad (FGCC), noted, “For the same services, residents end up paying different amounts. This disparity arises because GST is levied on the full amount rather than just on the segment exceeding Rs 7,500, leading to discontent and conflicts within communities.”
Associations argue that most services, including security and maintenance, are outsourced, with vendors charging GST. Therefore, imposing an additional 18% charge on residents effectively means double taxation.
“With rising costs in education, healthcare, loans, and daily living, there’s little room for savings. GST on maintenance charges is regressive and disproportionately impacts middle-class families, seniors, and those living on fixed incomes. Residents already pay municipal taxes and statutory levies for many of these services,” commented VBJ Chelikani Rao, president of the Confederation of RWAs (CoRWA).
