Quick Summary
In response to mounting confusion among apartment dwellers and Resident Welfare Associations (RWAs) over GST applicability on monthly maintenance charges, the Ministry of Finance and Corporate Affairs has issued a detailed clarification. Following a report titled "GST shadow looms over apartment complexes" published on April 11, the Press Relations and Information Division, under the Director General (MC), stepped in to address concerns that have left many housing society members and management
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FAQ :
GST is applicable only if an RWA's aggregate annual turnover exceeds £20 lakh AND the monthly maintenance charges collected per member exceed £7,500. If both conditions are met, GST at 18% applies to the entire maintenance amount.
Not necessarily. GST is only applicable if your RWA's annual turnover also exceeds £20 lakh. If the turnover is below this limit, no GST is payable, even if charges exceed £7,500.
Yes, the £7,500 threshold applies on a per-apartment basis. This means the limit is considered separately for each residential unit owned by an individual.
Yes, RWAs are eligible to claim Input Tax Credit (ITC) on capital goods, goods, and services used for maintenance, which was not available under the previous VAT regime.
If both the turnover and monthly maintenance thresholds are met, the GST rate applicable is 18% on the entire maintenance amount collected.
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