Applicability of GST in maintenance as per builder demand

678 votes

Monthly maintenance charges, which you pay to your cooperative housing society (CHS), will not attract Goods and Services Tax (GST), provided it is Rs 5,000 or less per month. This directive is part of a detailed explanatory note, issued recently in the form of FAQs by the Tax Research Unit, Ministry of Finance (MoF). It is argued that even if one is paying more than Rs 5,000 per month as maintenance charges, if total collections of the CHS are less than Rs 20 lakh a year, the society will not have to register under GST. Consequently, it will not be liable to impose GST on taxable services — such as maintenance charges, parking charges, et al. Smaller societies with lower annual collection (revenue) are likely to be out of the GST ambit. (As re-iterated by Yusuf Hakim, indirect tax partner at CNK & Associates. )
Applying the same in your case would not incur any GST if paid monthly but if paid in advance will definitely come in GST ambit.

LawRato LawRato

664 votes

GST is applicable on such advance society maintenance charges, however, applicability of GST will depend upon type of services provided by the builder against to society maintenance charges. This link may help you -
http://www.cbec.gov.in/resources//htdocs-cbec/gst/gst-faq-cooperative-society.pdf;jsessionid=FF10F9FECD3AC07E35E82328DE40819E

For details guidance, need more info in this regard.

Advocate Vishnu Kesarwani LawRato