Apartment Maintenance Charges in Bangalore: How CAM, GST and the Sinking Fund Work
Monthly maintenance is the one cost of an apartment that never ends, yet it rarely features in a price discussion. This guide explains what common area maintenance (CAM) pays for in a Bangalore apartment and how the bill is worked out. It also covers when GST is added, how the sinking fund differs, and what to check before booking.
What Monthly Maintenance Pays For
CAM is the charge each owner pays towards running the shared parts of the project. The flat itself is the owner's to maintain, and everything outside the front door is paid for jointly. A typical budget covers these heads:
- Security and housekeeping staff
- Electricity for lifts, pumps, corridors, basements and street lights
- Diesel and servicing for the backup generators
- Water, including tanker supply, and the running of the sewage treatment plant
- Service contracts for lifts, fire systems and other equipment
- Gardens, the swimming pool, the gym and the clubhouse
- Insurance, audit fees and the association's office costs
Staff and power are usually the two largest heads. A project with several pools, a large clubhouse and wide landscaped areas has more to staff, light and repair, so its monthly bill is higher. The amenity list in a brochure is, in effect, a list of future running costs.
How the Bill Is Worked Out
Most Bangalore projects charge maintenance at a rate per sq ft of super built-up area. A larger flat pays more, in line with its share of the building. Some smaller buildings charge the same amount for each flat, and some use a mix of the two.
The arithmetic is simple. At a rate of Rs. 4 per sq ft, a flat of 1,500 sq ft pays Rs. 6,000 a month, or Rs. 72,000 a year. The same flat at Rs. 5.50 per sq ft pays Rs. 8,250 a month, which also takes it past the GST limit described below.
Karnataka law backs the area-based method. Under the Karnataka Apartment Ownership Act, 1972, common expenses are shared in proportion to each flat's undivided interest in the common areas. The Karnataka Apartment (Ownership and Management) Bill, 2026 asks for charges broadly in proportion to super built-up area. It also bars unequal charges on flats of the same area and use.
When GST Applies to Maintenance
GST on maintenance depends on two limits, and both must be crossed before any tax is due. The rules are these:
- Maintenance of up to Rs. 7,500 a month per flat is exempt
- An association with an annual turnover of up to Rs. 20 Lakhs is outside GST, whatever the charge per flat
- When both limits are crossed, GST of 18% applies to the full monthly charge and not only to the part above Rs. 7,500
- An owner of two flats is tested against the Rs. 7,500 limit separately for each flat
These points were set out in a circular issued by the Central Board of Indirect Taxes and Customs on 22 July 2019. The effect at the margin is sharp. A flat paying Rs. 7,400 a month pays no tax, while a flat paying Rs. 8,000 pays Rs. 1,440 more, for a bill of Rs. 9,440.
Builder Phase and Association Phase
In the first months after possession, the builder or its facility management company runs the project and sets the rate. Under the RERA Act, the promoter must keep essential services running at a reasonable charge until the owners' association takes over. Many builders collect one or two years of maintenance in advance at possession.
The rate often changes once the association takes charge. A launch rate set while the project is half occupied may not match the real cost of a full building. A careful association can also bring costs down by renegotiating contracts. The first audited budget under the association is the most reliable guide to the long-term bill.
CAM, Corpus and Sinking Fund
Three different amounts are often mixed up. Monthly maintenance pays for day-to-day running. The corpus is a one-time deposit collected at possession and held as a reserve for the building. A sinking fund is built up through regular contributions to pay for large, infrequent works such as repainting, waterproofing or replacing a lift.
A low monthly rate with an empty reserve is not a saving. When a large repair falls due, owners in such a building face a one-time demand. Asking for the reserve balance along with the monthly rate gives the full picture.
Unpaid Dues and Resale
Maintenance arrears follow the flat. Associations normally ask for all dues to be cleared before they issue a no-dues letter for a sale. The 2026 Bill writes this into law: unpaid common expenses become a charge on the apartment, and the buyer is jointly liable with the seller for arrears up to the date of transfer.
The Bill also sets limits on the association. A penalty for late payment cannot exceed one month's maintenance charge. Essential services such as water, electricity, lifts and access to the flat cannot be withheld from a defaulter. The new law takes effect from a date the state government notifies.
Checks Before Booking
A few questions asked early show what a flat will cost to hold. These are the ones that matter most:
- Ask for the current rate per sq ft and work out the monthly bill on the flat's super built-up area.
- See whether that bill falls above or below Rs. 7,500, and add 18% GST if it is above.
- Ask whether the rate is the builder's opening rate or one set by the association from real costs.
- Ask how much advance maintenance and corpus is collected at possession.
- In an occupied project, read the latest audited accounts and note the reserve balance.
- On a resale, take a no-dues letter from the association before paying the seller.
- Ask how the rate has moved over the last three years.
Maintenance belongs in the monthly budget next to the loan instalment. The EMI calculator gives the instalment, and adding the maintenance bill to it shows the true monthly cost of owning the home.