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Friday, January 28, 2022

Now GST will also be applicable on the maintenance charge of the flat, know the changed rules regarding this

GST on maintenance charges: Maharashtra Authority for Advance Ruling said in its order that if a co-operative housing society collects more than 7500 maintenance charges monthly, then GST of 18 percent will be levied.

GST will be levied on more than 7500 maintenance.

GST on maintenance charges: Maharashtra Authority for Advance Rulings (AAR) has issued a new order regarding maintenance charges. Advance Ruling said in its order that if any co-operative housing society collects maintenance charges from its members every month. If he collects more than Rs 7500, then Goods and Services Tax will be levied on it.

This rule will be implemented from July 1, 2017 under the retrospective amendment. According to the Finance Act 2021, the co-operative housing society and its members have been given the status of a distinct entity. This is the first order of its kind since the Amendment. Therefore, now the CHS will also have to collect and pay the GST.

No GST if annual turnover is less than 20 lakhs

According to the circular of the Finance Ministry, the cooperative housing society has to collect GST at the rate of 18 percent on the maintenance charge. However, the only condition is that this amount should be more than Rs 7500. With this, one more thing has to be kept in mind that if the annual turnover of a housing society is less than 20 lakhs, then this rule will not apply to it. Such a society does not have to fill or collect GST.

GST will be charged at 18%

In the GST of 18 percent, there is 9 percent Central GST while 9 percent is the State GST. It does not contain IGST. Let us inform that according to the circular of the Finance Ministry dated 22 July 2019, when the maintenance charge paid to RWA (Residents Welfare Association) for any housing society is more than Rs 7500 per month, then GST is applicable on it. Before 25 January 2015, this limit was only 5000 rupees which was increased to 7500 rupees.

RWA has to collect and pay tax

It was clearly stated in this circular that if the maintenance charge for a society is more than Rs 7500, then GST of 18 per cent will be levied on the entire charge. Suppose the maintenance charge of your society is 10 thousand rupees, then the GST amount will be 1800 rupees at the rate of 18 percent. It is not that after 7500, you have to deposit GST only on the amount of 2500.

Also read, SBI issued notice to its customers, do this work quickly to continue banking service without interruption

Also read, Invest this much today and after 20 years get 1.5 lakhs every month, 40 thousand now will be equal to 1.5 lakhs at that time


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