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TMI BlogIssues related to GST on monthly subscription / contribution charged by a Residential Welfare Association from its members.X X X X Extracts X X X X X X X X Extracts X X X X ..... n for providing services and goods for the common use of its members in a housing society or a residential complex. The same have been examined and are being clarified below. Sl.No Issue Clarification 1. Are the maintenance charges paid by residents to the Resident Welfare Association (RWA) in a housing society exempt from GST and if yes, is there an upper limit on the amount of such charges for the exemption to be available? Supply of service by RWA (unincorporated body or a non- profit entity registered under any law) to its own members by way of reimbursement of charges or share of contribution up to an amount of ₹ 7500 per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods is also ₹ 20 lakhs or more. Annual turnover of RWA Monthly maintenance charge Whether exempt? More than ₹ 20 lakhs More than ₹ 7500/- No 7500/- or less Yes ₹ 20 lakhs or less More than ₹ 7500/- Yes 7500/or less Yes 3. Is the RWA entitled to take input tax cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . How should the RWA calculate GST payable where the maintenance charges exceed ₹ 7500/- per month per member? Is the GST payable only on the amount exceeding ₹ 7500/- or on the entire amount of maintenance charges? The exemption from GST on maintenance charges charged by a RWA from residents is available only if such charges do not exceed ₹ 7500/- per month per member. In case the charges exceed ₹ 7500/- per month per member, the entire amount is taxable. For example, if the maintenance charges are ₹ 9000/per month per member, GST @18% shall be payable on the entire amount of ₹ 9000/- and not on [₹ 9000 - ₹ 7500] = ₹ 1500/-. Sd/-T.V.Soma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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