Builders Charge GST on Maintenance Despite Being Exempt


GST impact on the Maintenance Bill
GST impact on the Maintenance Bill

Home buyers of Supertech Eco Village-1 are worried and feeling helpless as their builder has charged 18% GST on their maintenance bill. This is despite the fact that their monthly maintenance charges are barely Rs 2000 rupees a month. As per the Goods and Services Tax law, maintenance charges upto Rs 5000 a month are exempt from GST. Although the Finance Ministry has issued a clarification, this arbitrary calculation of GST done by the builder has left home owners like Sumeet Saxena confused.

Sumeet, a resident of Supertech Eco Village says, "Three or four societies in Greater Noida West have started charging 18% GST on maintenance charges. They have sent messages to us and have started deducting the money."

Deepal Diwedy of the same housing society says, "The builder Supertech is making undue profits. GST has caused a lot of confusion. We do not know where to go."

 

But the builder has his own explanation, M K Arora, CMD of Supertech says, "If the builder or any company appointed by the builder is taking care of the facilities and maintenance, all residents have to pay GST whether its Rs 2000 or Rs 5000."

Recently a clarification issued by the Finance Ministry reiterated that the supply of service by RWA, unincorporated body or a registered non- profit entity, to its own members by way of reimbursement of charges up to an amount of five thousand rupees per month per member for providing services and goods for the common use of its members in a housing society or a residential complex are exempt from GST. RWAs will have to pay GST on monthly contributions over than Rs. 5000 per member and if the annual turnover of RWA is over Rs. 20 lakhs. 

Suyash Pandey, resident of Stellar Jeevan in Greater Noida West says, "Exempt maintenance from GST. Just like Municipalities provide services to the people, societies are also providing services to the residents. Why charge GST from them?"

The confusion regarding the impact of GST on property prices is not over yet and now there is this added confusion of GST on maintenance charges. Despite the best efforts of the government and the GST masterclasses being organised by the Finance Ministry, the confusion regarding GST rates remians unresolved.
 

98 thoughts on “Builders Charge GST on Maintenance Despite Being Exempt

  1. What if no of flats are high, average flat size is small so does the maintenance charges, but annual turn over of the RWA society may shoot above 20 Lakhs? Then since they have to pay on whole 20L, therefore builders might have taken that. Need clarification from govt on small small issues, it high time Mr. Jatley and team.I am also a flat owner, not a builder

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  2. Not sure if comments on these page are iven any importance, however, any housing society more than 100 units will defiently fall under GST ans annual collection will be more than 20L.It is illogical

  3. Skytech Builder is charging unjustified maintenance charges plus GST on that.As per GST policy GST is applicable on maintenance more than RS 5000. Please clarify is GST is applicatble if Builder is running the maintenance in society.

  4. Our builder has started charging GST on maintainance @18% from the month of July 2017. Monthly maintenance charges are below ₹2000/-. The builder does not mentioned GST registration number on the Demand Note.Kindly enlighten me from the existing rule position whether the builder in the above quoted example is correct.

  5. Our builder -Shriram Property' is providing building maintenance service from 2012 to till date and asking GST on monthly Rs.2300 maintenance charge. Also they applied GST on penalty charges.If we aksed the explanation they are saying builder is providing service and you have to pay every penny under GST.

    Do we have any rules how long builder can provide the maintenance services? This is already 7th years of the building, but they are not ready to leave.

  6. I am also confused because our builder Terhan Home Developers is also charging GST @ 18% on maintenance bill of amount 1500-2000 Per monthS K YadavHill View Garden Bhiwadi

  7. Our builder use to give us total bill if 2100 till 2 month back aa maintainence. Now he is bifurcated in water ,electricity , security n other items. Charged gst on security n other items. Total invoice was 2100 but it is 2208. Will h i have to pay gst 

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  56.  Hello Everyone,Mr Mark Roland Paco Loan CompanyWelcome to the future! Financing made easy with Mark Roland Loan Investment Inc.Have you been looking for financing options for your new business plans, Are you seeking for a loan to expand your existing business, Do you find yourself in a bit of trouble with unpaid bills and you don’t know which way to go or where to turn to? Have you been turned down by your banks? Mark Roland Loan Investment Inc. says YES when your banks say NO. Contact us as we offer financial services at a low and affordable interest rate of 3% for long and short term loans. Interested applicants should contact us for further loan acquisition procedures.Email:pacoloancompany@gmail.com or Phone Number:+1 (419) 718-1467Services rendered include:* Car Loan
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  57. A MUST READ: HOW I GOT MY LOAN FROM THIS GREAT COMPANY CALLED DR. JOHN MARSHALL  LOAN COMPANYHello to All across the globe, I am Mrs. Sharon David, from United State Of America, USA. I am a mother of 4 kids and I was stuck in a financial situation and I needed to refinance and pay my bills. I tried seeking loans from various loan firms both private and corporate but never with success, and most banks declined my credit ,do not fall prey to those hoodlums at there that call them self money lender they are all scam , all they want is your money and you will not hear from them again they have done it to me twice before I meet Dr. John Marshall the most interesting part of it is that my loan was transfer to me within 48hours so I will advice you to contact Dr. John Marshall if you are interested in getting loan and you are sure you can pay him back on time you can contact him via email……… (dr.johnmarshallloans@gmail.com)  Phone +1 (984) 333-2836 No credit check, no co signer with just 2% interest rate and better repayment plans and schedule if you must contact any firm with reference to securing a loan without collateral then contact Dr. John Marshall  today for your loanThey offer all kind of categories of loan theyShort term loan (1_10years)
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  58. We have provided over $1 Billion in business loans to over 15,000 business owners just like you. We use our own designated risk technology to provide you with the right business loan so you can grow your business. Our services are fast and reliable, loans are approved within 24 hours of successful application. We offer loans from a minimum range of $5,000 to a maximum of $300 million,you can counteract us through our email address (aseiamicrofanance@gmail.com)

  59. I met this wonderful hacker that offers hacking services. Some of their services are: – Get anypassword from any Email Address. – Get any password from any Face-book, Twitteror Instagram account. – Cell phone hacking (whatsapp, viber, line, wechat,wirewire transfer Western union/money gram etc) – Grades changes (institutes anduniversities) Blank ATM – Websites hacking, pen-testing. – IP addresses andpeople tracking. – Hacking courses and classes. their services are the best onthe market and 100% secure and discreet guaranteed. Just write them and ask foryour desired service:  EMAIL ADDRESS: cyberhackingspecialist AT GMAIL DOTCOM or text +15165312529

  60. Hello, Am Dr. patric stewartam a legitimate and reliable Loan lender. I offer all kinds of packages of Loans. I give out loans on a clear and understandable terms and conditions at 2% interest rate. From $5000 to $6000000 USD, Euro And Pounds Only. We give out Business Loans, Personal Loans, Student Loans,Car Loans, Bank Loans And Loans To Pay Off Bills. If interested kindly Contact us:patricstewart222@gmail.com  Or +1 321 999 0232Your Full Name: 
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  62. ALL HAIL THE GREAT ILLUMINATI BROTHERHOOD FINANCE GROUP ( A BROTHERS LOVE IS GOLDEN )To get Fame, Power, Blessings, Riches, Prosperity and all Good things that you can enjoy here on earth, I want you to join the illuminati Brotherhood Finance Group today and you will be accepted to a new world of Wealth and Power, No matter your current condition you can have a new story because if you join the illuminati Brotherhood Finance Group , You will have good rewards1. You will be given a first membership reward of 50,000$2. And as you continue to spend time with us, you will be given cars and houses .3. If you have any special talent you will be made very famous in your careers just like other famous artist you are hearing about in the USA entertainment industry.Greetings
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  63. Nigeria, Ghana Turkey, France and Israel.My name is Mrs.Ramirez Cecilia, I am from Philippines. Have you been looking for a loan?Do you need an urgent personal or business loan?contact Fast Legitimate Loan Approval he help me with a loan of $78.000 some days ago after been scammed of $19,000 from a woman claiming to be a loan lender from Nigeria but i thank God today that i got my loan worth $78.000.Feel free to contact the company for a genuine financial Email:(creditloan11@gmail.com) 

  64. Reliable loan offer with a low interest rate of 2% and loan duration of 1 to 30 years to pay back the loan secure and unsecured. Do not keep your financial problems to yourself in order for you not to be debt master or financial stress up, which is why you must contact us quickly for a solution to your financial problems. It will be a great joy to us when you are financially stable contact us via WhatsApp Number: +19292227023 Email profclaudeloans@gmail.com 
     

  65. I got my already programmed and blanked ATM card to withdraw the maximum of $50,000 daily for a maximum of 20 days. I am so happy about this because i got mine last week and I have used it to get $100,000. MRS MARY is giving out the card just to help the poor and needy though it is illegal but it is something nice and she is not like other scam pretending to have the blank ATM cards. And no one gets caught when using the card. get yours from her. Just send her an email On atmmachine443@gmail.com 

  66. Good day everyone, i want to use this platform to express my sincere gratitude to KELVIN BROWN LOAN FIRM for keeping to their words. I live in USA New York and i am a happy woman today? I told my self that any Loan lender that could change my Life and that of my family, i will refer any person that is looking for loan to Them. If you are in need of loan and you are 100% sure to pay back the loan, please kindly contact them and please tell them that Mrs Lynn referred you to them. kelvinbrownloanfirm@gmail.com

  67. Hello, I want to share with you this Honest Loan lending company that lend me a loan to start up a business and pay up my bills with low credit score . i am very happy now. contact Email: Halifaxloan@fastservice. com 

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  69. we are investors providing reliable loans to individual and funding for business and projects start up. Do you need a reliable loan to pay your bills or solve any financial problems? with a low interest rate of 2% and loan duration of 1 to 30 years to pay back the loan secure and unsecured. It will be a great joy to us when you are financially stable contact us via Call/Text +1(702)536-4324 Email franciscojinvestments@gmail.com

  70. Getting a legitimate loan have always been a huge problem To clients who have financial problem and need solution to it. The issue of credit and collateral are something that clients are always worried about when seeking a loan from a legitimate lender. But.. we have made that difference in the lending industry. We can arrange for a loan from the range of $2,500. to $500,000.000 Our Services Include the Following: Debt Consolidation Second Mortgage Business Loans Personal Loans International Loans Auto Loans Family loan Loan for any kinds E.T.C*Commercial finance
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  71. Do you need a reliable loan to pay your bills or solve any financial problems? with a low interest rate of 2% and loan duration of 1 to 40 years to pay back the loan secure and unsecured. It will be a great joy to us when you are financially stable contact us via Call/Text +1(702)536-4324 Email franciscojinvestments@gmail.com

  72. Dear Sir/Madam
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  73. Do you need a legit, honest, reputable and fast loan? We Offer loan ranging from £10,000.00 to £800,000,000.00, We can help you 100% guarantee of a loan, with a low interest rate of 2% and loan duration of 1 to 40 years to pay back the loan secure and unsecured. Interested individuals should contact us via Call/Text +1(702)536-4324 Email franciscojinvestments@gmail.com
     

  74. I live in USA Florida and i am a happy woman today? I told my self that any Loan
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  75. I live in USA Florida and i am a happy woman today? I told my self that any Loan
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  76. We are direct providers of Fresh Cut BG, SBLC and MTN which are specifically for lease/sales, our bank instrument can be engage in PPP Trading, Discounting, signature project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges, Real Estate and all kind of projects. We do not have any broker chain in our offer or get involved in chauffeur driven offers.We deliver with time and precision as sethforth in the agreement. Our terms and Conditions are reasonable, below is our instrument description.The procedure is very simple; the instrument will be reserved on euro clear to be verified by your bank, after verification an arrangement will be made for necessary bank documents and stock testing expenses, the cost of the Bank Guarantee/Standby Letter of Credit will be paid after the delivery of the MT760,Description OF INSTRUMENTS:1. Instrument: Bank Guarantee (BG/SBLC)
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    8. Hard Copy: Bonded Courier within 7 banking days.Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected. In complete confidence, we will work together for the benefits of all parties involved. Contact : Mr. Raymond Doison
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  77. We are direct providers of Fresh Cut BG, SBLCWe are authorized Financial consulting firm that work directly with A rated banks eg Lloyds Bank,Barclays Bank,HSBC bank etc We provide BG, SBLC, LC, LOAN and lots more for clients all over the world. We are equally ready to work with Brokers and financial consultants/consulting firms in their respective countries. Our procedures are most reasonable and safest as we operate a 100% financial risk free process which entails that the issuing and receiving bank continues the transaction immediately after DOA is countersigned We hope to establish a long term business relationship with you even after this first trial. Best Regards,
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  78. DO YOU NEED AN AFFORDABLE LOAN TODAY?We have provided over $1 Billion in business loans to over 27,000 business owners just like you. We use our own designated risk technology to provide you with the right business loan so you can grow your business. Our services are fast and reliable, loans are approved within 24 hours of successful application. We offer loans from a minimum range of $5,000 to a maximum of $500 million.Do you find yourself in a bit of trouble with unpaid bills and don’t know which way to go or where to turn? What about finding a reputable Debt Consolidation firm that can assist you in reducing monthly installment so that you will have affordable repayment options as well as room to breathe when it comes to the end of the month and bills need to get paid? Dr. Ryan Grants Loan Home is the answer. Reduce your payments to ease the strain on your monthly expenses. Email (ryangrantsloanhome@gmail.com) Phone: +1 (504) 587-1780DO YOU NEED 100% FINANCE? we give out loans with an affordable interest rate of 2% RYAN GRANTS LOAN HOME, (ryangrantsloanhome@gmail.com) Phone: +1 (504) 587-1780 aims is to provide Excellent Professional Financial Services.Our services include the following:* Farm Loans
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  80. Wolves boss Nuno Espirito Santo has signed a new contract through to 2021, the Premier League club have announced. His coaching staff also received improved deals ahead of the new season. Nuno Espirito Santo signs new three-year deal as Wolves manager ahead of Premier League return

  81. David Beckham has admitted he would have become a painter if he had not made it as a professional footballer. The retired former Manchester United, Real Madrid and England star also confessed that he would love to try basketball, and hopes to learn photography. Beckham reveals he would have been a PAINTER if he failed to make it as a footballer, but his acting needs work…

  82. Pay your bills and celebrate your Christmas and start your New year with a
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