Background is an AOP in Kerala...an apartment complex and its residents association registered under Kerala Society Registration Act with 100 odd members. We had collected a lumpsum maintenance deposit before GST act. We collect monthly maintenance charges based on square feet of each apartment.
1) Is there any difference (benefits in GST payment) if maintenance charges are unitwise equal?
2) is there GST to be paid by AOP if only 2 or 3 members have a monthly maintenance charges more than 7500?
3) Is a GST account and filing of GST returns etc by AOP a viable/ tax efficient option if it is just for 2-3 members ?
Association Seeks Clarity on GST for Apartment Maintenance Fees; Conflicting Views on Exemption Thresholds and Application. An association of persons (AOP) in Kerala, managing an apartment complex, is seeking clarity on GST implications for maintenance charges. They collect monthly maintenance fees based on apartment size and are concerned about GST obligations if only a few members pay more than Rs. 7,500. Responses suggest that maintenance charges are exempt from GST up to Rs. 7,500 per month per member, but GST applies to the entire amount if exceeded, according to a CBIC circular. However, a Madras High Court judgment indicates GST should apply only to the excess amount. Registration is necessary if turnover exceeds certain thresholds. (AI Summary)
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