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Home / Finance / Taxes / Is GST exemption not allowed when maintenance charges are collected by builder and not by RWA?
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Is GST exemption not allowed when maintenance charges are collected by builder and not by RWA?

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-1 2023-11-07T17:08:07+00:00

The exemption from GST on maintenance charges is generally allowed when they are collected by the Resident Welfare Association (RWA) and not by the builder or developer. If an RWA is registered under the GST, it can collect GST from its members on the maintenance charges and pay the GST to the government. 

Now, coming to your query: Is GST applicable on maintenance charges collected by builders? Yes, but builders or developers collect GST on the maintenance charges when the project is under construction and before the handover to the RWA. However, after the handover, the responsibility for collecting and paying GST on maintenance charges typically shifts to the RWA.

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