TaxTMI 
TaxTMI 
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?
GST ON CORPUS FUND FOR SPECIFIC PURPOSE IN A RESIDENT WELFARE aSSOCIATIN
17 Apr 2025 
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Aggregate turnover: inclusion of special corpus contributions can trigger mandatory GST registration and tax liability.
Special contributions collected by a Resident Welfare Association for specific capital or repair purposes constitute consideration and are to be included in aggregate turnover for GST threshold determination. Notification exemptions for per member maintenance do not prevent inclusion of lump sum project receipts; inclusion can trigger mandatory GST registration and consequent tax and compliance obligations. Associations should segregate exempt and taxable components and follow CBIC guidance and advance rulings when treating corpus or project funds. (AI Summary)
Special contributions collected by a Resident Welfare Association for specific capital or repair purposes constitute consideration and are to be included in aggregate turnover for GST threshold determination. Notification exemptions for per member maintenance do not prevent inclusion of lump sum project receipts; inclusion can trigger mandatory GST registration and consequent tax and compliance obligations. Associations should segregate exempt and taxable components and follow CBIC guidance and advance rulings when treating corpus or project funds. (AI Summary)