Clubhouse, swimming pool, gym, banquet hall and community hall charges raise a GST question that is distinct from ordinary maintenance. Where the society charges a member or an outsider for the use of a specific amenity, the charge is consideration for a supply of the right to use that amenity. It is not a contribution for common-use sourcing in the same way as monthly maintenance, and the ₹7,500 per-member monthly exemption does not automatically cover it. The amenity charge should be analysed on its own character, and the invoice should distinguish it from maintenance.
The Amenity Charge as a Separate Supply
A charge for the use of a clubhouse, swimming pool, gym or banquet hall is consideration for a specific service—the right to use the facility. Where the society is registered under GST, the charge attracts GST at the applicable rate. The supply is not a reimbursement of common maintenance; it is a separate facility-use service.
The characterisation applies whether the user is a member or an outsider. A member who books the clubhouse for a private event is receiving a service that is distinct from the member’s maintenance contribution. An outsider who books the banquet hall is receiving a service from the society. The invoice should describe the amenity use accurately and should not blend it with the maintenance charge.
The Maintenance Exemption Boundary
The ₹7,500 per-member monthly exemption under Entry 77 of Notification No. 12/2017 applies to contributions for sourcing goods or services from a third person for common use. A clubhouse or amenity charge is not a contribution for common-use sourcing; it is a charge for the use of a specific facility by a specific user. The exemption therefore does not automatically apply.
Where the society includes a small amenity component in the monthly maintenance charge, the characterisation depends on whether the component is a genuine common-use contribution or a disguised facility charge. The society should align the invoice description with the substance: if the amenity is available to all members as part of the common facilities, the cost may be part of maintenance; if the amenity is booked and charged per use, it is a separate supply.
Aggregate Turnover and Registration
The society’s aggregate turnover includes taxable supplies, exempt supplies and zero-rated supplies. Clubhouse and amenity charges form part of the turnover computation where they are consideration for a taxable supply. A society with maintenance charges below ₹7,500 per member per month may still cross the ₹20 lakh threshold because of amenity income.
A society that is not registered because its maintenance charge is below ₹7,500 should still compute its aggregate turnover, including amenity charges, to determine whether registration is required. The maintenance exemption and the registration threshold are separate tests.
Documentation and Consistency
The society should maintain the rules or resolutions that authorise the amenity charges, the rate card, the invoices or receipts that show the amenity charge separately, and the GST treatment adopted. Where the society treats the amenity charge as taxable, it should report it consistently. Where it treats a component as part of maintenance, it should be able to explain why the characterisation is appropriate.
What the Society Should Control
The society’s GST position on clubhouse and amenity charges depends on three variables: whether the charge is correctly characterised as a separate facility-use supply rather than maintenance; whether it is included in the aggregate turnover computation; and whether the invoice distinguishes it from the maintenance contribution. The society that controls these variables avoids under-reporting amenity income and misapplying the maintenance exemption.
Call to Action: We advise housing societies and RWAs on clubhouse and amenity charges, maintenance exemptions, aggregate turnover and invoice discipline. For a society-specific GST review, contact office@anujdesaiassociates.com, Ph No. 9619456656, Website https://anujdesaiassociates.com, LinkedIn linkedin.com/in/ca-anuj-desai-122547230.