Hyderabad Residents Grapple with Soaring Maintenance Costs and GST Impact
Thousands of residents living in gated communities across Hyderabad are confronting a significant financial challenge this year, as escalating maintenance expenses have forced many households into the 18% Goods and Services Tax (GST) bracket. This dual burden is placing immense pressure on monthly budgets, with families now paying substantially more for essential services.
Sharp Increase in Monthly Maintenance Charges
In the financial year 2026–27, monthly maintenance charges have surged dramatically, now ranging between Rs 8,000 and Rs 10,000 per household. This rise is primarily driven by higher costs for security staff salaries, electricity consumption, clubhouse maintenance, common amenities, and water systems. Previously, most residents were paying between Rs 6,000 and Rs 7,000 monthly, comfortably below the Rs 7,500 threshold that triggers GST application. The recent hike has fundamentally altered this financial landscape.
According to Resident Welfare Associations (RWAs), Hyderabad is home to nearly 200 gated communities and hundreds of high-rise complexes, housing over five lakh households. Of these, more than two lakh households are already subject to 18% GST on their maintenance charges. With the latest increase, an additional 50,000 households are expected to fall within the tax net, exacerbating the financial strain on a broader segment of the population.
Immediate Impact on Household Budgets
The effect on monthly finances has been both immediate and severe. Residents who previously paid around Rs 7,000 are now incurring an extra Rs 3,000 to Rs 4,000 per month. This increase comprises both the rise in base maintenance charges (Rs 1,000–Rs 2,000) and the additional GST component. For many, this added expense is squeezing already tight budgets, leaving little room for savings or discretionary spending.
In key residential hubs along the western corridor—such as Kokapet, Gachibowli, Khajaguda, Nanakramguda, Tellapur, Nallagandla, and Narsingi—maintenance charges typically range between Rs 4 and Rs 5 per square foot. This variation depends on the scale of amenities and the size of the housing project. Many residents have already received notifications via email and SMS about the revised charges, prompting concerns over affordability.
Resident Experiences and Community Disparities
Sathwika Reddy, a resident of Nanakramguda, shared her experience: "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." This sentiment is echoed by many who argue that the combined impact of inflation and taxation is overwhelming household finances.
RWAs highlight that the GST structure is creating inequities within communities. Since maintenance charges vary based on flat size, some residents remain below the Rs 7,500 threshold and are exempt from GST, while others must pay the tax on the entire amount. Sai Ravi Shankar, president of the Federation of Gated Communities, Cyberabad (FGCC), explained: "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."
Concerns Over Double Taxation and Regressive Effects
Associations further contend that most services—including security, housekeeping, and maintenance—are already outsourced, with vendors charging GST. Imposing an additional 18% on residents effectively results in double taxation, as households are taxed twice for the same services. VBJ Chelikani Rao, president of the Confederation of RWAs (CoRWA), emphasized the broader implications: "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."
This situation underscores a growing crisis in urban living costs, where essential community services are becoming increasingly unaffordable due to regulatory and economic pressures. As more households are drawn into the GST net, the call for policy review and relief measures is likely to intensify among Hyderabad's residents.
