18% GST on flat owners on entire maintenance charge

A notification has been issued by Tamil Nadu Authority for Advance Ruling (AAR) had recently issued on the lack of clarity about the amount on which GST applicable on maintenance charges. It has been held that GST of 18% is applicable on the entire amount and not on the difference amount in case the amount collected by a registered housing society or a resident welfare association (RWA) exceeds Rs 7,500 per month per flat.

However, exemption of GST is applicable if the annual aggregate turnover of the resident welfare association is not more than Rs 20 lakh. It was further clarified that a person who owns two or more residential apartments in a housing society or a residential complex will be construed as a member of the RWA for each residential apartment separately. That is, the ceiling of Rs 7500 per month per member will be applied separately for each residential apartment.

RWAs are entitled to take Input Tax Credit of GST paid by them on input goods and services such as generators, water pumps, lawn furniture, taps, pipes, other sanitary/hardware fittings and repair and maintenance services.