Flat owners who pay monthly maintenance fees of more than 7,500 rupees to the Resident Welfare Association (RWA), will now have to pay 18 percent of the goods and services tax (GST). The Finance Ministry said this on Monday. According to the rules, if the monthly charge per flat is more than Rs. 7,500 and the RWA’s annual turnover is more than Rs. 20 lakhs through the supply of services and goods, then RW will have to collect GST from its members.
The Ministry of Finance has issued circular for the field offices to calculate how RWA can calculate GST if the maintenance fee is more than Rs. 7,500 per member. The Ministry of Finance has clarified that GST will be exempted in the monthly maintenance fee whereas this per member is less than Rs. 7,500.
The Ministry said that if this fee is more than Rs. 7,500 then it will be GST on the entire amount. If a person has two or more flat in the housing society or residential premises then the limit of Rs. 7,500 will be according to the flat rate. For instance, a person with two flats charges a monthly maintenance fee of Rs 7,500-7,500 for a total of Rs 15,000, so he will not have to give any GST according to each flat.