Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
****
To,
The Principal Chief Commissioner/ Chief Commissioners/ Principal Commissioner/ Commissioner of Central Tax (All)/ The Principal Director Generals/ Director Generals (All)
Madam/ Sir,
Subject: Issues related to GST on monthly subscription/contribution charged by a Residential Welfare Association from its members- reg.
A number of issues have been raised regarding the GST payable on the amount charged by a Residential Welfare Association for providing services and goods for the common use of its members in a housing society or a residential complex. The same have been examined and are being clarified below.
RWA shall be required to pay GST on monthly subscription/ contribution charged from its members, only if such subscription is more than Rs. 7500/- per month per member and the annual aggregate turnover of RWA by way of supplying of services and goods is also Rs. 20 lakhs or more.
For example, if a person owns two residential apartments in a residential complex and pays Rs.15000/- per month as maintenance charges towards maintenance of each apartment to the RWA (Rs. 7500/- per month in respect of each residential apartment), the exemption from GST shall be available to each apartment.
2. Difficulty, if any, in implementation of the Circular may be brought to the notice of the Board.
22-07-2019
Susanta Kumar Mishra
Technical Officer (TRU-II)
Contact No: 011-23095558
e-mail: susanta.mishra87@gov.in