Hi
1. Yes
2. Not applicable
3. Yes
You need to register under GST as the threshold of 20 lacs is crossed.
Apartment maintenance charges GST
Dear All, We are an unregistered Resident Welfare Association in Chennai, Tamil Nadu and I have the below questions. 1. Maintenance Charges that we collect from apartments is approx Rs 16 Lacs 2. Interest that we get from our Corpus Fund Contribution is 2.8 Lacs 3. Sinking Fund (mini corpus) that we have proposed to collect from owners every half year is 1.5 Lacs and yearly would be 3 Lacs My Questions a) Whether the sinking fund / mini corpus which is likely to be collected twice / once every year should be taken as Income / Revenue for that year. b) If the answer to the above is No, then should I include it as revenue when I use the money for repairs. c) Whether the interest got from my bank to be included as my revenue for GST 20 lakhs calculation As per the GST circular I read, Apartments with income over and above 20L have to register for GST and I want to know if we are crossing the limit in any way?
Asked 4 years ago in GST
For the sake of clarity - Please Put my Maintenance Charges at 16.5 Lacs Interest from Bank would increase YOY - So Let us put it at 3.5 Lacs Sinking Fund / Mini Corpus would be Rs 3 Lacs
Asked 4 years ago
How many flats are there in your apartment?
Is the amount exceeding Rs. 7500 per month per flat?
If any to above is yes, sinking fund would be taken as income.
Interest on bank deposit is exempt and hence it will be included in total turnover.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Yes you would be liable to take GST registration.
Thank you for the responses. I will certainly do the ratings for everyone. We have 11 Apartments and monthly maintenance exceeds 10k. Two Questions for Mr. Naman 1. 3 years back (2016) we collected a corpus totaling to 35L and we did not pay income tax / register for ST - Can't the sinking fund be treated like another corpus? If answer to above is 'Yes' - then should we include the money used from the Corpus / Mini Corpus (Sinking fund) as income when we use it? 2. I dont understand when you say "Interest on bank deposit is exempt and hence it will be included in total turnover" - Does it mean we need to include the interest in the turnover but need not register for GST because of the same? If answer to the above is Yes, Why should we register for GST as the Maintenance is 16.5L and Sinking Fund that is proposed this year is 3L and totals only to 19.5L
Asked 4 years ago
Sir if the amount is above 7500 per month GST needs to be charged.
Sir corpus and sinking fund are different.
As per as sinking fund is concerned department is of the view that its just normal collection from members and hence it will be liable for GST: http://cbic.gov.in/resources//htdocs-cbec/gst/GST_ON_Co-operative_housing_Societies0509.pdf;jsessionid=556CDA86EF16D0B656AF48E1C5EDC83A
Whereas as far as corpus is concerned its a capital receipt in form of deposit and hence no GST is required as per this AAR:
Sir in case of GST exempt supplies are those on which GST will not be charged but form a part of total turnover to calculate turnover eligibility of GST.
So you need to register.
Dear Sir,
Hope you are doing well !!
1. Yes.
2. No applicable.
3. As per section 2(6) of CGST Act, “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.
As per Notification no. 12/ 2017 (central tax rate) dated 28.06.2017, services by way of extending deposits, loan or advances in so far as the consideration is represented by way of interest or discount is exempt under GST.
As interest on fixed deposits covered under exempt supplies, it will be included in computation of aggregate turnover in GST.
Thanks a TON - The links are very helpful. As per the first cbic.gov.in Link "If the aggregate turnover of such RWA is up to Rs.20 Lakh in a financial year, then such supplies would be exempted from GST even if charges per member are more than Rs. Seven thousand five hundred." - Page 4 So we will only stop with just the maintenance charges this year. As 16.5L (maintenance) +3L (bank interest) is going close to the GST threshold. If the above is followed diligently, can we ask the members for a second corpus to be transferred once a year? I understand if we use the corpus amount, the amounts would get included in the income and may cross the gst threshold. So if we can take care of that, are we safe here? Is there anything that stops us from collecting this Corpus half yearly if proper accounts can be maintained?
Asked 4 years ago
Yes, you need to register under GST as you cross the threshold limit of Rs. 20 Lakhs.
Hello,
Yes, it would be declared as Income/Revenue for the year.
The Interest income being Exempt Supply would be considered for calculation of the Aggregate turnover for Registration Applicability.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Since the aggregate turnover is above Rs. 20 Lakhs, you would be required to be registered under GST.
Yes I think it should not be a major concern then.
As far as practicallity is concerned there should not be any issue and as such the department is not much concerned with housing society.
If you need any future assistance in any tax matters feel free to contact.
- You are not liable to obtain GST registration as the charges liable for GST does not cross the threshold limit of Rs.20 lacs.
- Interest from bank is exempt from tax.
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA