No GST on housing society RWA with Rs 5K/month subscription
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Resident welfare association will be required to pay GST on monthly subscription/contribution charged from its members if such payment is more than Rs 5,000 per member and the annual turnover of RWA by way of supplying of services and goods is also more than Rs 20 lakhs.
In the GST regime, businesses with turnover of up to Rs 20 lakh are exempt.
Further, if the aggregate turnover of such RWA is up to Rs 20 lakh in a financial year, then such supplies will be exempted from GST, even if charges per member are more than Rs 5,000.
However, RWAs supplying of services and goods aggregating more than Rs 20 lakhs per annum will attract 18 per cent GST.
Clarifying reports that services provided by a Housing Society Resident Welfare Association (RWA) will become expensive under GST, the ministry said these are completely unsubstantiated.
"Under GST, the tax burden on RWAs will be lower for the reason that they would now be entitled to ITC in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture), goods (taps, pipes, other sanitary/hardware fillings) and input services such as repair and maintenance services," the ministry said.
Input tax credit (ITC) of central excise and VAT paid on goods and capital goods was not available in the pre-GST period and these were a cost to the RWA.
"Thus, there is no change made to services provided by the Housing Society (RWA) to its members in the GST era," it said. #casansaar (Source - PIB)
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