New GST Rule on Apartments : Paying Over ₹7500 in Flat Maintenance? Get Ready to Pay More GST on High-Rise Buildings

New GST Rule on apartments ,18 percent GST will be charged only from high-rise buildings. Only flats exceeding a monthly maintenance of Rs 7,500 are liable to pay 18 percent GST. The Ministry of Finance and Corporate Affairs clarified the news. Last time, changes were made in 2018. The decision will affect millions living in high-rise buildings.

What are the actual terms

The Ministry of Finance and Corporate Affairs has decided to impose 18% GST on maintenance of flats. This is a   new GST Rule on apartments. Flats with the maintenance amount exceeding more than Rs 7,500 will be charged 18% GST. The amount will be charged only if the total turnover of the housing society or RWA is over Rs 20 lakhs. No amount will be charged if the turnover of the housing society is less than Rs 20 lakhs.

What Ministry of Finance and Corporate Affairs has said

According to The New Indian Express, the office of Director General (M&C), Press Relations & Information Division, Ministry of Finance & Corporate Affairs, has clarified that if the aggregate turnover of an RWA does not exceed Rs 20 lakh in a financial year, it shall not be required to take registration and pay GST even if the amount of maintenance charges exceeds Rs 7,500 per month per member.
They further added that RWAs are entitled to take Input Tax Credit (ITC) of Goods and Services Tax (GST) paid by them on capital goods (generators, water pumps, lawn furniture etc.), goods (taps, pipes, other sanitary/hardware fittings etc.) and input services such as repair and maintenance services.
The Ministry also clarified that if a person has two flats, the ceiling amount the new GST Rule on apartment of Rs 7,500 will be applied specifically for each property.

How to check about your RWA’s status and what was the early law

To know about the turnover and GST of your housing society or RWA under new GST Rule on apartments, you can visit the nearest local tax office; you will be charged Rs 500 for the information.
Earlier in 2018, the ceiling was exempted from Rs 5,000 to Rs 7,500 in the 25th meeting of the GST Council.