Hello all,
I have query on GST against maintenance charges of housing societies. I've seen with govt circular that there are 2 criteria for GST to be eligible:
1. Total expenditure per annum crosses 20 lakhs.
2. Maintenance per month per flat crosses 7500/-.
I've query related to the 2nd aspect, as ours is definitely crossing the 20 lakh per annum mark. Currently there are 2 models of levying maintenance in apartments - per flat or per sft (and a hybrid). For a per flat model, it is easy to understand.
But if it is per sft model, would the average value be calculated when deciding the GST for the association, or is it per individual flat that is going to decide? For example, if there are some flats who have maintenance more than 7500/-, but many flats are hovering around 4000/-, with the average value coming to 5500/-:
1. Would the GST be applicable at all in the 1st place since the average is below 7500/-?
2. Will a single flat crossing 7500/- attract GST to all flats under the association, or is it applicable to only those flats?
My understanding from the govt circular is that
1. it is the average value that tells us whether GST would be applicable or not, and
2. if at all GST is attached to 1 flat, it has to be applied to all the flats.
Looking for guidance.
Thanks, Sasi.
CAclubindia
