GST ON ANNUAL MAINTENANCE CHARGES COLLECTED FOR APARTMENT CONDOMINIUM

[Tushar Agrawal]

Is GST applicable on annual maintenance charges collected by apartment condominium? If yes, please provide the rate of GST. Is registered AOP can deny or instruct to it's members to pay GST directly to the government?

[Sadanand Bulbule]

Contribution up to an amount of Rs. 7500 per month per member for providing services and goods for the common use of its members in a housing society or a residential complex is exempt from GST.

Ref CBIC Circular No.109/28/2019-GST dated 22/07/2019.

[Ganeshan Kalyani]

It is the society's responsibility to pay GST if applicable. The members cannot be instructed to pay directly to the government.

[KASTURI SETHI]

CBIC Circular No.109/28/2019-GST dated 22/07/2019 is amply clear. No room for any doubt.

2021 (55) G.S.T.L. 529 (Mad.) - GREENWOOD OWNERS ASSOCIATION Versus UNION OF INDIA

 

[Shilpi Jain]

Association eligible for exemption. So if your charges are less than 7500, no liability

[Shilpi Jain]

*not more than Rs. 7500.

[Sadanand Bulbule]

Dear all

In today's leading national news papers and in the social media as well, grievance is aired on the levy of 18% GST on monthly maintenance charges paid to the Apartment Owners Society. If the society's annual turnover exceeds 20 lakhs, then it has to take registration and pay 18% GST on the entire amount, including the basic amount of Rs. 7500/- per month. Meaning there is no exemption up to Rs. 7500/-

So better to double check the issue before claiming exemption on Rs. 7500/-

AI Summary

GST exemption threshold for apartment maintenance affects society registration and shifts payment responsibility to the society.
Contributions up to the prescribed monthly threshold per member for common-use services are exempt from GST, while amounts exceeding that threshold are taxable. The association is the taxable person and must register and pay GST when its aggregate turnover crosses the registration threshold; members cannot be instructed to pay tax directly. Associations should verify applicability because some commentary contends that registration may render entire maintenance receipts taxable.