{"id":67189,"date":"2025-02-18T17:24:34","date_gmt":"2025-02-18T11:54:34","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=67189"},"modified":"2025-02-18T17:24:37","modified_gmt":"2025-02-18T11:54:37","slug":"gst-on-maintenance-charges-by-rwa","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/gst-on-maintenance-charges-by-rwa\/","title":{"rendered":"GST on Maintenance Charges by RWA"},"content":{"rendered":"\n
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Key Takeaways<\/strong><\/h3>\n\n\n\n
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  • GST Applicability:<\/strong> RWAs pay 18% GST if maintenance per member exceeds \u20b97,500 and turnover is over \u20b920 lakh.<\/li>\n\n\n\n
  • Exemptions:<\/strong> RWAs below \u20b920 lakh turnover or charging \u20b97,500 or less are GST-exempt.<\/li>\n\n\n\n
  • ITC Benefits:<\/strong> RWAs can claim Input Tax Credit (ITC) on eligible expenses like security and housekeeping.<\/li>\n\n\n\n
  • GST Compliance:<\/strong> Timely filing of GSTR-1, GSTR-3B, and GSTR-9 avoids penalties.<\/li>\n\n\n\n
  • Financial Impact:<\/strong> GST increases costs, requiring better budgeting and record-keeping.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n

    Resident Welfare Associations are a common sight across major cities in India. They are responsible for looking after the needs of the residents and flat owners who live in a particular society. <\/p>\n\n\n\n

    RWAs work as non-government organisations and ensure delivery of important services such as garbage collection, water supply and organising events at a residential complex<\/a>. In case of any problems, they are responsible for resolving them.<\/p>\n\n\n\n

    In return for their services, they claim maintenance charges from the residents. But do you know that the government imposes GST on maintenance charges by RWA<\/strong>? In this blog, we will discuss which RWAs are subject to GST, how RWAs can calculate their GST returns and the due date for filing different GST returns.<\/p>\n\n\n\n

    What Are Resident Welfare Associations?<\/strong><\/h2>\n\n\n\n
    \"What
    <\/figcaption><\/figure>\n\n\n\n

    An RWA is a body which voices the concerns of the residents of a housing society, apartment complex, residential complex, etc. The Societies Registration Act of 1860 governs their work. An RWA must have at least 7 members and the age of each member must be above 18.<\/p>\n\n\n\n

    One of the most common and important functions of an RWA is to ensure the cleanliness and maintenance of amenities<\/a> of the housing area. For this, they collect maintenance charges for residents. In the rest of the blog, we will cover the <\/strong>GST on maintenance charges by RWA.<\/p>\n\n\n\n

    What Is GST?<\/strong><\/h2>\n\n\n\n

    Goods and Services Tax (GST) is a major effort to unify the indirect taxes in India. It represents the agenda of \u201cOne Nation, One Tax\u201d. The Union Government introduced the GST to simplify the taxation of goods <\/a>and services across India.<\/p>\n\n\n\n

    How GST on Maintenance Charges by RWA Works?<\/strong><\/h2>\n\n\n\n

    The Finance Ministry released circular 109\/28\/2019- GST to clarify the rules regarding the application of GST on maintenance charges imposed by Resident Welfare Associations.<\/p>\n\n\n\n

    As per the circular, residents paying up to \u20b97,500 monthly as monthly maintenance charges will not face GST. Earlier, the limit was set at \u20b95,000. It was increased to \u20b97,500 on 25 January 2018. <\/p>\n\n\n\n

    Moreover, if the aggregate turnover of the RWA is up to \u20b920 lakh, then the maintenance changes paid by the residents will be exempt from GST. The exemption will be valid even if the residents pay more than \u20b97,500 monthly as maintenance charges.<\/a><\/p>\n\n\n\n

    GST is applied to maintenance charges when the charge per member exceeds \u20b97,500 and the Resident Welfare Association\u2019s turnover exceeds \u20b920 lakh. The GST rate for the maintenance charges is 18%.<\/p>\n\n\n\n

    Here\u2019s a simplified breakdown of the cases in which the GST on maintenance charges is applicable:<\/p>\n\n\n\n

    Annual Turnover of RWA<\/strong><\/td>Monthly Maintenance Charges<\/strong><\/td>Applicability of GST on Maintenance Charges<\/strong><\/td><\/tr>
    Over of \u20b920 lakh<\/td>Over \u20b97,500<\/td>Yes<\/td><\/tr>
    \u20b97,500 or less<\/td>No<\/td><\/tr>
    \u20b920 lakh or less<\/td>Over \u20b97,500<\/td>No<\/td><\/tr>
    \u20b97,500 or less<\/td>No<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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