Flat owners will now have to pay 18 percent GST if their monthly maintenance fees to Resident Welfare Association (RWA) exceeds Rs 7,500, said the Finance Ministry on Monday. According to the PTI, the Finance Ministry in a circular clarified that exemption from GST is available only if the charges to RWA do not exceed Rs 7,500 per member. The statement explained, in case the charges exceed Rs 7,500 per month per member, the entire amount is taxable. For example, if the maintenance charges are Rs 9,000 per month per member, GST at 18 per cent shall be payable on the entire amount of Rs 9,000 and not on (Rs 9,000-Rs 7,500) = Rs 1,500.
For someone who owns two or more flats in a society will have to pay Rs 7,500 per month for each residential apartment has to be paid. For instance, if a person owns two apartments and pays Rs 15,000 per month (Rs 7,500 for each apartment) as maintenance charges to the RWA then the exemption from GST will be applied to each apartment separately.
