New Delhi: Apartment owners will have to pay 18% GST if their maintenance charges paid to the resident welfare association (RWA) exceed Rs 7,500 per month, a finance ministry clarification said on Monday.
“Prior to January 25, 2018, the exemption was available if the charges or share of contribution did not exceed Rs 5,000 per month per member. The limit was increased to Rs 7,500 per month per member with effect from January 25,” the ministry said.
It said 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 the rate of 18% shall be payable on the entire amount of
Rs 9,000 and not on Rs 1,500 (Rs 9,000-Rs 7,500),” the ministry said in a clarification
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