Services provided by housing societies, Residents’ Welfare Associations (RWAs) will not become expensive under the Goods and Services Tax (GST) regime.
According to finance ministry, RWAs will be required to pay GST on monthly subscription/contribution charged from its members if such payment is more than Rs 5,000 per member and the annual turnover of RWA by way of supplying of services and goods is also more than Rs 20 lakh.
In the GST regime, businesses with turnover of up to Rs 20 lakh are exempt.
Further, if the aggregate turnover of such RWA 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 lakh per annum will attract 18 per cent GST. Clarifying reports that services provided by a Housing Society Residents Welfare Association (RWA) will become expensive under GST, the ministry said these are completely unsubstantiated.