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

Last updated: 24 August 2021

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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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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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