GST on Monthly Subscription Charges by Residential Welfare Associations
<p><span>The Government of India has provided clarifications on GST-related issues concerning monthly subscription charges by Residential Welfare Associations (RWAs) for services provided to their members. The key points from Circular No. 109/28/2019-GST are as follows:</span></p><ol start="1"><li><span><strong>GST Exemption Limit</strong>:</span><ul><li><span>Maintenance charges paid by residents to RWAs are exempt from GST if the charges do not exceed ₹7,500 per month per member. This limit was increased from ₹5,000 to ₹7,500 effective from 25th January 2018.</span></li></ul></li><li><span><strong>Registration Requirement for RWAs</strong>:</span><ul><li><span>RWAs with an aggregate turnover of ₹20 lakh or less in a financial year are not required to register and pay GST, even if individual maintenance charges exceed ₹7,500 per month per member.</span></li></ul></li><li><span><strong>Input Tax Credit (ITC) Eligibility</strong>:</span><ul><li><span>RWAs are entitled to claim ITC on GST paid for inputs and services used in providing supplies to their members, provided the charges for such supplies exceed ₹7,500 per month per member.</span></li></ul></li><li><span><strong>Ceiling Application for Multiple Flats</strong>:</span><ul><li><span>If a person owns multiple residential apartments, the ceiling of ₹7,500 per month per member is applied separately for each apartment.</span></li></ul></li><li><span><strong>GST Calculation for Charges Exceeding ₹7,500</strong>:</span><ul><li><span>If maintenance charges exceed ₹7,500 per month per member, the entire amount is taxable, not just the amount exceeding ₹7,500.</span></li></ul></li></ol>