Gst on maintenance charges resident welfare association
This query is : Resolved
09 September 2018
Dear Sir/Madam,
I live in an apartment complex in Bangalore and the RWA is charging GST on the full amount when the the exemption limit is crossed instead of charging GST only on the amount in excess of the exemption limit as mentioned clearly in the flier on GST COUNCIL/CBEC web site. The relevant portion is quoted below as well as links to fliers and faqs.
The Consultant hired by the RWA claims that the Fliers and FAQS do not have legal validity and only the act and rules apply. Please therefore let me know what is the correct method... ie GST on Full Amount or only on the excess above the exemption limit.
Request you to clarify by return,
Quote from flier
As per clause (b) of the above exemption, exemption is available to housing societies for provision of carrying out any activity which is exempt from the levy of Goods and service Tax assuming that a housing society is a non-profit registered entity; and property tax and electricity is exempt from the levy of GST. Thus, charges, collected by the society on account of property tax, electricity charges and other statutory levies would be excluded while calculating the limit of Rs.5,000/-.
Further, the question would then arise that if the monthly bill is say Rs. 6,000/- (and the same is on account of services for common use of its members), will GST be applicable on Rs. 6,000/- or Rs.1,000/-. In such cases, exemption is available up to an amount of Rs. 5,000/ and GST would be applicable on the amount in excess of Rs.5,000/-
Unquote
http://gstcouncil.gov.in/sites/default/files/GST-Fliers/Excise_51%20GST_Flyer_1030-Corr-Binder.pdf
http://gstcouncil.gov.in/sites/default/files/faq/gst-faq-cooperative-society.pdf
http://gstcouncil.gov.in/sites/default/files/GST-Fliers/32-GST_ON_Co-operative_housing_Societies07032018.pdf
I live in an apartment complex in Bangalore and the RWA is charging GST on the full amount when the the exemption limit is crossed instead of charging GST only on the amount in excess of the exemption limit as mentioned clearly in the flier on GST COUNCIL/CBEC web site. The relevant portion is quoted below as well as links to fliers and faqs.
The Consultant hired by the RWA claims that the Fliers and FAQS do not have legal validity and only the act and rules apply. Please therefore let me know what is the correct method... ie GST on Full Amount or only on the excess above the exemption limit.
Request you to clarify by return,
Quote from flier
As per clause (b) of the above exemption, exemption is available to housing societies for provision of carrying out any activity which is exempt from the levy of Goods and service Tax assuming that a housing society is a non-profit registered entity; and property tax and electricity is exempt from the levy of GST. Thus, charges, collected by the society on account of property tax, electricity charges and other statutory levies would be excluded while calculating the limit of Rs.5,000/-.
Further, the question would then arise that if the monthly bill is say Rs. 6,000/- (and the same is on account of services for common use of its members), will GST be applicable on Rs. 6,000/- or Rs.1,000/-. In such cases, exemption is available up to an amount of Rs. 5,000/ and GST would be applicable on the amount in excess of Rs.5,000/-
Unquote
http://gstcouncil.gov.in/sites/default/files/GST-Fliers/Excise_51%20GST_Flyer_1030-Corr-Binder.pdf
http://gstcouncil.gov.in/sites/default/files/faq/gst-faq-cooperative-society.pdf
http://gstcouncil.gov.in/sites/default/files/GST-Fliers/32-GST_ON_Co-operative_housing_Societies07032018.pdf
09 September 2018
GST should only on balance amount ( maintenance amount minus Rs 7500/- ( as amended)) For calculating Rs 7500/- , exempted amount such as municipal taxes etc to be reduced .
No where in the Act and Rules its mentioned either way .
Still flier & FAQ are the guiding factors as long as it is not in contradiction of Act & Rules
No where in the Act and Rules its mentioned either way .
Still flier & FAQ are the guiding factors as long as it is not in contradiction of Act & Rules
Message likes :
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19 December 2018
In Service Tax Regime, there was a similar exemption in respect of housing societies (of up to Rs. 5000 per month per member). ST Circular no. 175/01/2014-ST says as follows:
If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification. Service tax would then be leviable on the aggregate amount of monthly contribution of such members.
In absence of any clarification to the contrary in respect of GST, we should follow the above clarification.
If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification. Service tax would then be leviable on the aggregate amount of monthly contribution of such members.
In absence of any clarification to the contrary in respect of GST, we should follow the above clarification.
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