Published On: Tue, Jul 23rd, 2019

18% GST if flat owners maintenance contribution to RWA crosses Rs 7,500

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Those flat owners whose monthly contribution to resident welfare association is more than Rs 7,500 are now required to pay GST of 18 percent, said Finance Ministry.

A circular issued by the ministry mentions how the RWA would calculate the GST payable if the monthly subscription exceeds Rs 7,500 or the annual turnover of the office exceeds Rs 20 lakhs by way of supply of services and goods.

The guidelines read, “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 @18 per cent shall be payable on the entire amount of Rs 9,000 and not on (Rs 9,000-Rs 7,500) = Rs 1,500.”

If a person owns two or more flats in the same residential complex or housing society, the GST will be calculated separately for both based on the ceiling of Rs 7,500.

GST - flat owners

According to the ministry circular, “if a person owns two residential apartments in a residential complex and pays Rs 15,000 per month as maintenance charges towards maintenance of each apartment to the RWA (Rs. 7500/- per month in respect of each residential apartment), the exemption from GST shall be available to each apartment.”

It is further advised the RWAs should take input tax credit of the GST paid by them on capital goods like lawn furniture, water pumps and generators, goods like pipes and tapes, and input services like the repair and maintenance services.

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- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at

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