GST leviable on amount paid by members of RWA in excess of Rs 7500/- Per Month

Last updated: 13 August 2021

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Quick Summary

The Madras High Court has ruled that Goods and Services Tax (GST) is applicable only to the portion of monthly contributions made by members to a Resident Welfare Association (RWA) that exceeds £7500. Previously, the interpretation was that if contributions surpassed this threshold, the entire amount would be subject to GST. This ruling clarifies that the exemption applies up to £7500, with tax only due on the excess amount.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in Greenwood Owners Association v. Union of India [W.P. Nos. 5518 and 1555 of 2020 dated July 01, 2021] held that contribution by the members of the Resident Welfare Association ('the RWA') only in excess of Rs. 7500/- per month per member would be taxable under the Goods and Services Tax Act, 2017('the GST Act').

Citation :
W.P. Nos. 5518 and 1555 of 2020 dated July 01, 2021

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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