NEW DELHI :
The finance ministry on Monday clarified that goods and services tax (GST) is applicable on the entire maintenance charge levied by taxable residential welfare associations if such charge is above ₹7,500 a month for a member of the body.
In a circular issued to clarify the applicability of GST on building maintenance charges, the ministry said that in case the charges exceed Rs. 7,500 a month per member, the entire amount is subject to 18% GST, not just the amount in excess of ₹7,500.
The circular also said that GST is applicable only in cases where the residential welfare association has annual turnover more than ₹20 lakh and the maintenance charged is more than ₹7,500. The clarification also said if a person owns more than one house and pays more than ₹7,500 maintenance for both the houses together, but less than this threshold individually, it is exempt from GST.