18% GST on flat owners on monthly RWA fee of over Rs 7,500: Govt

Finance Ministry circular clarifies how residents' associations should charge GST.

Flat owners will pay 18 per cent GST if their monthly maintenance fees to resident welfare associations (RWA) is more than Rs 7,500, said the Finance Ministry on Monday.

RWAs have to collect GST on fees charged from members, if such payment is more than Rs 7,500 per flat per month and the annual turnover of RWA by way of supply of services and goods exceeds Rs 20 lakh.

The Finance Ministry in a circular clarified an exemption from GST is available only if charges do not exceed Rs 7,500 per month per RWA member.

"In case the charges exceed Rs 7,500 per