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No GST on housing society RWA with Rs 5K/month subscription

Services provided by an educational institution to students, faculty and staff are fully exempt

Press Trust of India  |  New Delhi 

GST, tax, investors

Services provided by societies resident welfare association will not become expensive under the Goods and Services (GST) regime, the ministry said today.

Resident welfare association will be required to pay on monthly subscription/contribution charged from its members if such payment is more than Rs 5,000 per member and the annual turnover of by way of supplying of services and goods is also more than Rs 20 lakhs.


In the regime, businesses with turnover of up to Rs 20 lakh are

Further, if the aggregate turnover of such 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

Clarifying reports that services provided by a Society Resident Welfare Association (RWA) will become expensive under GST, the ministry said these are completely unsubstantiated.

"Under GST, the 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 credit (ITC) of central excise and VAT paid on goods and capital goods was not available in the pre-period and these were a cost to the

"Thus, there is no change made to services provided by the Society (RWA) to its members in the era," it said.

In a separate statement, the ministry reiterated that services provided by an educational institution to students, faculty and staff are fully from

There will be no on annual subscription/fees charged as lodging/boarding charges by educational institutions from its students for hostel accommodation.

Clarifying reports that 18 per cent will be levied on annual subscription/fees charged for lodging in hostels, the ministry said there is no change in liability relating to and related services in the era, except reduction in rate on certain items of

Services provided by an educational institution to students, faculty and staff are fully

Educational institution has been defined as an institution imparting pre-school and up to higher secondary school or equivalent, as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force, as a part of an approved vocational course.

Thus, services of lodging/boarding in hostels provided by such educational institutions which are providing pre- school and up to higher secondary school or equivalent or leading to a qualification recognised by law, are fully from GST, the ministry said.

Annual subscription/fees charged as lodging/boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST, it added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, July 14 2017. 01:31 IST
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