Question : What are the provisions related to GST applicability on maintenance charges of Housing Societies ?
Answer: Provisions relating to GST applicability on maintenance charges of Housing Societies are being explained below.
Question: Whether GST is applicable to Housing Societies and Apartments ?
Answer: GST is not applicable to Housing Societies and Apartments if the Monthly Maintenance Charges collected by Residents Welfare Association (RWA) or Apartment Owners Association (AOA) is less than Rs.7500 per member.
Question: So if in any Society or Apartment, maintenance charges are more than Rs.7500/- per month per member, then the GST shall be applicable to such Society without any exception?
Answer: There is one exception to this applicability. GST shall not be applicable to any Housing Society even if the monthly Maintenance Charges are more than Rs.7500/- per month BUT the annual turnover of the RWA is less than 20 Lakh (Or Rs.10 Lakh in Special Category States)
Question: If the annual Turnover of the Society RWA is more than Rs.20 Lakhs ( Or Rs.10 Lakhs for Special Category States) but the monthly maintenance charges per month per member are less than Rs.7500, then what will be the applicability of GST ?
Answer: GST will not be applicable in this case, irrespective of the Annual Turnover because the per month per member maintenance charges are less than Rs.7500/-
In other words, GST shall be applicable to any Housing Society RWA only if the per member per month maintenance charges are more than Rs.7500/- AND the annual turnover of the RWA is more than the threshold limit of Rs.20 Lakh or Rs.10 Lakh.
Question: Is it advisable for any Housing Society RWA to go for the voluntary Registration under GST ?
Answer: Looking at the Receipts and Payments pattern of any Housing Society RWA, it will not be advisable for Housing Society RWA to go for the voluntary Registration under GST.
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