Gst on rwa
This query is : Open
09 October 2018
Sir/Madam
The Facts of the case is that there is a Owners Welfare Association in Chennai, which has been registered under Societies Act. It has been migrated to GST from Service tax last year. The maintenance charges and its over all turnover is below the threshold exemption. Its income includes Maintenance charges collected from members and rent received from shops let out inside the premises.As it was not liable to GST, it was just filing NIL GST Return monthly.
Now the Statutory Auditor of the Association is of the opinion that since it has GSTIN, it has to pay GST only on Commercial rent received. It has not surrendered the Registration as many vendors are asking for GSTIN.
Now I require expert advice for the following questions:
1. If we go with the opinion of the Statutory Auditor, then whether maintenance charges collected by them will also be subject to GST liability?
2. If GST is payable only on commercial rent received, then how ITC has to be apportioned?
3. If the Association wants to keep its GST Registration, then what would be its GST Compliances?
Your advice is this regard would be highly appreciable.
Thanks in advance
CA Sheela Sreeram.
The Facts of the case is that there is a Owners Welfare Association in Chennai, which has been registered under Societies Act. It has been migrated to GST from Service tax last year. The maintenance charges and its over all turnover is below the threshold exemption. Its income includes Maintenance charges collected from members and rent received from shops let out inside the premises.As it was not liable to GST, it was just filing NIL GST Return monthly.
Now the Statutory Auditor of the Association is of the opinion that since it has GSTIN, it has to pay GST only on Commercial rent received. It has not surrendered the Registration as many vendors are asking for GSTIN.
Now I require expert advice for the following questions:
1. If we go with the opinion of the Statutory Auditor, then whether maintenance charges collected by them will also be subject to GST liability?
2. If GST is payable only on commercial rent received, then how ITC has to be apportioned?
3. If the Association wants to keep its GST Registration, then what would be its GST Compliances?
Your advice is this regard would be highly appreciable.
Thanks in advance
CA Sheela Sreeram.
09 October 2018
1 Maintenance charges received from each person is not exceed Rs 7,500 per month no GST payable.
2 Annual rent of commercial property exceed 20 Lacs only GST payable.
3 File nil return.
2 Annual rent of commercial property exceed 20 Lacs only GST payable.
3 File nil return.
09 October 2018
Thanks for your Reply sir.
10 October 2018
The opinion of the statutory audit is correct. You are releived from GST on maintainance charges if the same are less than Rs 7,500 per month per member. However the disclosure of the same is necessary.
However, irrespective the turnover is less than Rs 20 lakhs, since the society is holding a GST registration, GST is to be charged on the commercial rent and paid regulary.
with respect to ITC, if there is any common credit, proportionate reversal will have to be made and which would have less probability. ITC only with respect to renting will be allowed.
However, irrespective the turnover is less than Rs 20 lakhs, since the society is holding a GST registration, GST is to be charged on the commercial rent and paid regulary.
with respect to ITC, if there is any common credit, proportionate reversal will have to be made and which would have less probability. ITC only with respect to renting will be allowed.
10 October 2018
Thanks for your opinion sir.
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