Housing societies or Resident Welfare Associations (RWAs) charge maintenance fees for common services like security, housekeeping, and repairs. Whether GST on society maintenance charges are applicable or not depends on the total amount and the society’s annual turnover.
GST for Society Maintenance Charges are Applicable or Not?
As per the GST Act, RWAs are required to collect GST at 18% on maintenance charges in some circumstances.
The RWA’s annual turnover from maintenance charges exceeds Rs. 20 lakh. Societies with a turnover below this threshold are exempt from GST.
If the monthly maintenance charged per member exceeds Rs. 7,500. If the charges are below this limit, no GST is applicable, even if the RWA’s turnover exceeds Rs. 20 lakh.
In cases where the monthly maintenance exceeds Rs. 7,500 per member, GST is applicable only on the amount exceeding Rs. 7,500.
For example, if a society charges Rs. 10,000 per month as maintenance, GST will be levied on Rs. 2,500 (the difference).
It’s important to note that if the society’s annual turnover is below Rs. 20 lakh, it is not required to register for GST or charge GST on maintenance, even if the per-member fee exceeds Rs. 7,500.
I hope this answers your query, is GST applicable on society maintenance charges.
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Is GST Applicable on Society Maintenance Charges?
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2024-10-30T14:44:29+00:00 2024-10-30T14:44:30+00:00Comment
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