GST- Maintenance charges for apartments

[VIGNESH]

sir- maintenance charges collected is ₹ 3000/- per month totally 38 flats, but the apartment association is planning for renovation, so it collects ₹ 45,000/- per flat owner! so should they register for GST?

[KASTURI SETHI]

Renovation is taxable activity. See the definition of 'Construction' under CGST Act. Registration is required.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.

Further, maintenance upto ₹ 7,500/- per month, per member is exempt from GST.

[Shilpi Jain]

For future you could also consider taking a one time corpus fund if possible from the owners, the income from which can be used to cater to the capital expenses. The receipts to this fund would not be taxable.

For this specific transaction you could also check if pure agent conditions would satisfy for GST to be not liable.

[Ganeshan Kalyani]

In my view, threshold limit for registration applies to society as well.

AI Summary

Renovation taxable as construction - GST registration and threshold obligations apply to apartment associations and owners. Renovation of apartment common areas is taxable as construction and can trigger a requirement to obtain GST registration, since the registration threshold applies to societies; by contrast, routine maintenance up to exempt limits, one-time corpus fund receipts, or sums meeting pure agent criteria may not attract GST.