Table of Contents
- 1 Do we need to pay GST on maintenance charges?
- 2 Can builder charge GST on monthly maintenance?
- 3 Can builders charge maintenance before possession?
- 4 How are maintenance charges calculated?
- 5 How is GST calculated on flats?
- 6 Do builders pay maintenance for unsold flats?
- 7 What is the GST rate for flat owners?
- 8 Is GST applicable to one-time maintenance deposit in Gujarat?
Do we need to pay GST on maintenance charges?
Yes, maintenance charges paid by residents to the Resident Welfare Association are exempt up to Rs. 7,500. In case the amount charged exceeds Rs. 7,500 per month per member, GST is chargeable on the entire amount charged.
Can builder charge GST on monthly maintenance?
The builder charges 18\%GST on monthly maintenance charges ,which is around Rs 4000/- per month. As per GST guidelines no GST up to Rs 7500/- pm on maintenance charges. The builder says ,its applicable for building having welfare association only.
How much is GST on society maintenance?
GST at 18\% is applicable on repair and maintenance funds and sinking funds collected by residents’ welfare association (RWA) or Housing Society if the total value of charges exceeds the threshold limit of Rs. 7500 per month per member, Maharashtra Authority for Advance Ruling (AAR) said.
Is GST applicable for apartments?
What is the current GST rate on a flat purchase? Ans. With effect from April 1, 2019, inexpensive residential units will be subject to a 1\% GST without ITC, while other residential properties will be subject to a 5\% GST without ITC.
Can builders charge maintenance before possession?
The builders may ask for 12 months, or 24 months, of maintenance charges in advance at the time of possession. Once handed over to the RWA, the frequency of collecting the maintenance charges is decided by it. Builder can charge maintenance from date taking over possession.
How are maintenance charges calculated?
Per sqft charge Per sq, ft method is extensively used for the calculation of the maintenance charges for the societies. On the basis of this method, a fixed rate is levied per sq ft of the area of the flat. If the rate is 3 per sq ft and you have a flat of 1000 sq ft then you will be charged INR 30000 per month.
When can a builder charge maintenance charges?
The builders may ask for 12 months, or 24 months, of maintenance charges in advance at the time of possession. Once handed over to the RWA, the frequency of collecting the maintenance charges is decided by it.
How much is GST on a new flat?
1. What are the new GST rates on the construction of residential apartments?
| Rate | Description |
|---|---|
| Ongoing affordable housing projects opting for new rates | |
| 5\% | Ongoing other than affordable housing projects |
| New other than affordable housing projects | |
| 1\% | Projects with commercial space <15\% of total carpet area |
How is GST calculated on flats?
For flats rated more than Rs 45 lakh, the new GST rate applicable from April 1, 2019, stands at 5\%, against 12\% currently. The GST Council also reduced GST rates on affordable housing to 1\%, from the current 8\%. In both cases, the builders will not be eligible to claim an input tax credit in the new structure.
Do builders pay maintenance for unsold flats?
The maintenance charges have to be paid by all the owners, whether the apartments are occupied or not. The maintenance charges for unsold flats should be borne by the builder till they are sold, and thereafter by the purchasers.
What is rule for flat maintenance charges?
Expenses on repair and maintenance of the building are 0.75\% per year of the construction cost per flat. Service charges like housekeeping, security guard, equipment used, electricity charges and so on are equally divided among the residents. Expenses on repair and maintenance of lifts are also divided.
What is the GST on maintenance charges for housing societies?
GST on maintenance charges for housing societies Flat owners are liable to pay 18\% GST on residential property, if they pay at least Rs 7,500 as maintenance charge to their housing society. Housing societies or residents’ welfare associations (RWAs) that collect Rs 7,500 per month per flat, also have to pay 18\% tax on the entire amount.
What is the GST rate for flat owners?
Flat owners will have to pay GST at 18\%, if their monthly contribution to the residents’ welfare association (RWA) exceeds Rs 7,500, the Finance Ministry said, on July 22, 2019.
Is GST applicable to one-time maintenance deposit in Gujarat?
The goods and services tax (GST) is applicable to the one-time maintenance deposit that builders collect from home buyers, the Gujarat bench of the Authority for Advance Rulings (AAR) has said. According to the Authority, this charge falls in the category of supply of services and is non-returnable in nature.
What are the GST liabilities of a society?
The society is also required to pay GST under the reverse charge mechanism, in case it is registered under the GST, on all the services or goods received by it from unregistered suppliers. The society, however, is entitled to claim set-off of the GST paid on such supplies, against its GST liability with respect to maintenance charges.