GST on society maintenance
1 month ago
Hi, my society is 80%+ occupied and has not formed AOA till yet due to incomplete work (raised by residential). As per my understanding GST on maintenance amount less than 7500 are exempted. However, my society is charging GST on maintenance value RS 2088 +18%. What should I do
A.Dear Client,
Till the formation and registration of AOA under the State-specific Act, the maintenance of the housing complex remains with the Builder/Developer who renders the service to society for commercial gains and is required to deduct GST @ 18% on the maintenance charges. Exemption of GST on maintenance is available once an association is formed and registered and the builder hands over the charge of maintenance to the Association which is a non-profit making establishment and eligible for exemption of GST on maintenance charge subject to a certain limit based on turnover of the Association as revised and notified by the GST Council last in the year 2019.
Till the formation and registration of AOA under the State-specific Act, the maintenance of the housing complex remains with the Builder/Developer who renders the service to society for commercial gains and is required to deduct GST @ 18% on the maintenance charges. Exemption of GST on maintenance is available once an association is formed and registered and the builder hands over the charge of maintenance to the Association which is a non-profit making establishment and eligible for exemption of GST on maintenance charge subject to a certain limit based on turnover of the Association as revised and notified by the GST Council last in the year 2019.
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A.Dear client, If these charges exceed INR 7,500, GST on commercial building maintenance charges will be levied on the total amount charged. The GST on society maintenance is 18% for flat owners who pay more than Rs 7,500. Here it is below 7500 and can be exempted under GST.
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A.Dear Sir,
As per Entry 77 of the GST Exemption Notification, the maintenance charge paid by residents to the Resident Welfare Association (RWA) in a housing society is exempt from GST up to an amount of Rs. 7,500 per month per member. It implies that even if the turnover of the housing society is above Rs. 20 lakhs
As per Entry 77 of the GST Exemption Notification, the maintenance charge paid by residents to the Resident Welfare Association (RWA) in a housing society is exempt from GST up to an amount of Rs. 7,500 per month per member. It implies that even if the turnover of the housing society is above Rs. 20 lakhs
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