GST on Sinking Fund Collected by RWA Society

[deepak gulati]

Sir,

In case of a residential housing society, they are collecting Sinking Fund & Major Repair Maintenance Fund (MRF) on quarterly basis from its members.

Now the question is whether these Sinking Fund & MRF Fund will be included while calculating ₹ 7,500/- exemption limit for charging GST on monthly contribution from members for common use.

Thanks & Regards

AI Summary

Should Sinking Fund and MRF be included in the 7,500 GST exemption limit for housing society contributions? A residential housing society is collecting a Sinking Fund and Major Repair Maintenance Fund (MRF) quarterly from its members. The query is whether these funds should be included in calculating the 7,500 exemption limit for charging GST on monthly contributions from members for common use. The response refers to decisions by the Authority for Advance Ruling (AAR) and the Appellate Authority for Advance Ruling (AAAR) in Karnataka, which provide guidance on this issue, specifically mentioning the case of Vaishnavi Splendour Home Owners Welfare Association.