GST on monthly maintenance condemned

“Residents’ welfare associations are collecting such charges only to pay salary to employees and for other amenities. There is no profit involved and GST will impact the associations,” C Ramakrishnan, vice president of Federation of Adyar Resident’s Association (FEDERA), said.

In a press statement, Ravindranath, GST and Central Excise Commissioner said that 18 per cent GST would be collected if the monthly maintenance charge is more than Rs 7,500 per member per month, if the turnover of associations exceeds Rs 20 lakh per financial year. “Associations shall not be required to take GST registration and pay GST even if the amount of maintenance charges exceeds Rs 7,500 per month per member but does not exceed Rs 20 Lakh per year,” the release added.

Meanwhile, V S Jayaram of T Nagar Residents’ Welfare Association termed the move as insensitive and said residents’ welfare associations are not profit-oriented and there is no trading activity involved.