Madras High Court Decision On Maintenance Charges In RWA And Housing Societies

Last updated: 24 August 2021
Quick Summary
The Madras High Court has ruled that Resident Welfare Associations (RWAs) and housing societies are only required to pay Goods and Services Tax (GST) on the portion of monthly maintenance charges that exceeds Rs 7,500 per member. This decision overturns previous interpretations where GST was levied on the entire amount if it surpassed the threshold. The court clarified that the term 'up to' in the exemption notification signifies an upper limit, meaning only contributions above Rs 7,500 are taxable.

Court :
Madras High Court

Brief :
Madras High Court in Greenwood (Greenwood Owners Association v. UOI), the RWAs are required to pay GST only on the differential amount collected from the member where the charges exceed Rs. 7,500.

Citation :
Greenwood Owners Association v. UOI

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