No GST is not aplicable in Housing association or RWA when service charges exceeds Rs 5000/- per month or the total charges of the society exceeds 20 lakhs per annum. This exemption is given only when Cooperative socity is rendering services to its members. In this case, as your builder is renderng services it is liable to GST.
GST on maintenance charges by builder
I purchased a flat in Navi Mumbai and got possession in 2003. So far the builder has not formed the society. The maintenance is looked after by the builder and is charging aRs 2000/- per month. Now the builder is charging 18 % GST on the maitnenance charges with retrospective effect (from June 2017). It is learnt that GST is applicable if the service charges exceeds Rs 5000/- per month or the total charges of the society exceeds 20 lakhs per annum. My flat is not satisfying either of these conditions.When enquired with the builder, his explanation is that this rule is applicable when the society is formed and since the maintenance is looked after by the builder the flat owners has to pay. Please give an advice that whether GST is applicable and if applicable who has to pay?. Even after three years the builder has not formed the society under the pretext that the none of the owners are showing any interest to form the society
Asked 7 years ago in GST
The flat owner has to pay GST because of delay in forming the society by the builder. How the flat owner can get relief from this extra burden?
Asked 7 years ago
They can firm the association. That is the only relief
The builder's opinion is absolutely correct. Such rule applies to housing societies. Go forward with formation of a society or pay GST.
Moreover, GST shall apply from July 2017 and not June 2017.
Hi,
The builders explanation seems to be reasonable. The rule is applicable to a housing society and not to builder.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CA B.Com
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