Photo: Mint
Photo: Mint

GST applicable on entire building maintenance charge if above 7,500: FinMin

  • The ministry said that in case the charges exceed Rs. 7,500 a month per member, the entire amount is subject to 18% GST
  • The circular also said that GST is applicable only in cases where the residential welfare association has annual turnover more than 20 lakh

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.

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