GST ON CORPUS FUND FOR SPECIFIC PURPOSE IN A RESIDENT WELFARE aSSOCIATIN

[MANIVANNAN SHANMUGAM]

A Resident Welfare Association having an annual Turnover of Monthly Maintenance charges collected from its members - per month per flat is less than Rs.3000/- totalling to Rs.14,20,000/- . When a contribution of Rs.14.00 lacs is received for any Major Repairs like Lift Modernisation i.e New Lift, whether the Contribution for special purpose is also to be reckoned for Annual Turn Over.? Or that Fund is not to be included for determining the threshold limit for GST levying?

AI Summary

GST Threshold Calculation: One-Time Lift Modernization Contribution Counts Toward Aggregate Turnover Determination A Resident Welfare Association collected monthly maintenance charges totaling Rs. 14.20 lakhs and received a one-time contribution of Rs. 14 lakhs for lift modernization. The key issue is whether this special purpose contribution should be included in calculating the annual turnover for GST threshold determination. Based on legal interpretations, the one-time contribution is considered part of aggregate turnover, which would trigger mandatory GST registration since the total exceeds Rs. 20 lakhs.