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GST Query On Office Building Association

25 June 2017

The maintenance service of our office Building is providing by an Association formed for that. Is GST will Charged on maintenance charges of office building?

The said Association is raising invoice base on actual expenses incurred during the month Divided by total area of building and multiple by actual area occupied by the owner.

The expenses includes common area electricity charges(actual and supported by electricity company bill), Security Guard and Housekeeping and Manager salary and maintenance charges of lift, Property Tax, Water Tax Fire License etc.

The Total yearly maintenance bill of association would be Rs.36 lac.

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4 Replies

Lalit Nagpal (Assistant Manager) (541 Points)
Replied 25 June 2017

Yes association has to take registration

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Arup Ghosh (48 Points)
Replied 25 June 2017

for that what should be the valuation rules for Charging GST? Actually they are raise actually expenses bill not added any profit margin.. So is they should charge GST on the expenses which paid to Govt. like Property Tax, Water Tax, Fire License fee? Or charge GST Other than this expenses?

Lalit Nagpal (Assistant Manager) (541 Points)
Replied 25 June 2017

Collection from residents will be it's turnover and will collect GST on same that will be payable to govt. In addition to this it will incur some exp like security guard,housekeeping, maintenance it has to pay GST under RCM but can avail input credit while paying gst on collection from residents

Arup Ghosh (48 Points)
Replied 25 June 2017

Thanks sir,

basically they are doing transaction with all register dealer and presently the charged Service Tax and VAT .

Can you share me for Association which section we refer for GST purpose.