GST on Society Maintenance Above 20 Lakh Annual Collection
All homeowners who live in a housing society need to pay some money to the housing society/RWA for the maintenance and welfare of the building. But did you know that on this maintenance charges paid by the homeowner, GST at 18% rate also needs to be paid. Goods and Services Tax (GST) at 18% rate is required to be paid by all homeowners who are living in a housing society that has an annual turnover of more than Rs 20 lakh or Rs 10 lakh (in some states) and the monthly maintenance charges paid is ..
Say for example a housing society/RWA collects Rs 10 lakh per year from its members but during the year due to an urgent building maintenance need, the housing society had to collect Rs 21 lakh. In this case the respective housing society/RWA needs to take GST registration. However, GST registration once taken means the respective housing society/RWA have to keep complying with the applicable GST provisions year on year even if its turnover is below Rs 20 lakh, unless they cancel their GST registration.
However, despite the society taking GST registration, if the monthly maintenance amount is Rs 7500 or less from each members, then there is no need to pay GST and it does not matter if the annual collection of the society is more than Rs 20 lakh.
