Regarding GST applicability on RWA

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This discussion clarifies when Resident Welfare Associations (RWAs) must charge Goods and Services Tax (GST) on maintenance fees. Generally, GST at 18% is applicable if the RWA's annual turnover exceeds Rs 20 lakh (or Rs 10 lakh in some states) AND individual monthly maintenance charges are over Rs 7,500. Even if the turnover dips below the threshold in subsequent years, GST compliance is required unless registration is cancelled. However, if monthly charges per member are Rs 7,500 or less, GST is not applicable, regardless of the total annual collection.

Jaswinder singh

Jaswinder singh (Querist)

05 August 2025 Respected Colleagues,
One of my client having Flat in a society where CAM Charges around 6800/- + GST(18%) and additionally others reimbursements, So total invoice he received complete 10,000/-
Now my ques Is whether RWA having 150 flats total in society and collects GST on Maintenance charges is valid (Turnover below 20 Lakhs)?
Please guide and refer any suitable website link and GST case law for related RWA for which i will debate with society president..

Regards...

Dhirajlal Rambhia online

Dhirajlal Rambhia

(Expert)

05 August 2025 GST at 18% rate also needs to be paid. Goods and Services Tax (GST) at 18% rate is required to be paid by all homeowners who are living in a housing society that has an annual turnover of more than Rs 20 lakh or Rs 10 lakh (in some states) and the monthly maintenance charges paid is more than Rs 7500. (by any member/s in the society)
Example a housing society/RWA collects Rs 10 lakh per year from its members but during the year due to an urgent building maintenance need, the housing society had to collect Rs 21 lakh. In this case the respective housing society/RWA needs to take GST registration. However, GST registration once taken means the respective housing society/RWA have to keep complying with the applicable GST provisions year on year even if its turnover is below Rs 20 lakh, unless they cancel their GST registration.

However, despite the society taking GST registration, if the monthly maintenance amount is Rs 7500 or less from each members, then there is no need to pay GST and it does not matter if the annual collection of the society is more than Rs 20 lakh.

Jaswinder singh

Jaswinder singh (Querist)

05 August 2025 Thanks a lot sir.........

Dhirajlal Rambhia online

Dhirajlal Rambhia

(Expert)

05 August 2025 You are welcome.

Dhirajlal Rambhia online

Dhirajlal Rambhia

(Expert)

24 September 2025 Good Luck...

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