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

Apartment Association Faces GST Dilemma on Renovation Fees; Experts Discuss Tax Implications and Registration Requirements An apartment association collecting monthly maintenance charges of 3,000 per flat is planning a renovation, requiring 45,000 from each flat owner. The question raised is whether GST registration is necessary. One expert states that renovation is taxable under the CGST Act, necessitating registration. Another agrees, noting maintenance charges up to 7,500 per month per member are GST-exempt. A third suggests considering a one-time corpus fund for capital expenses, which would not be taxable, and exploring pure agent conditions to possibly avoid GST. The threshold limit for GST registration applies to the society as well.