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.
 

65 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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  27. My name is Mrs Abigail Mills we are a new legit loan lenders of 2018 and we like to help any body that need financial help we offer as from $500,000.00 and $5,000,000.00 and we also give out loans in euro above that so if  you need help kindly send us an email on:abigailmills.loans227@gmail.com so that  your loan transaction can take place now you will be with your loan in the next 8 hours it is a fast transfer and is safe without any delay. So email:abigailmills.loans227@gmail.com if interestedEmail:abigailmills.loans227@gmail.com

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  29. Hello Everybody, here comes an loan Offer that will change your life forever, TESTIMONY ON HOW I GOT A LOAN TO CHANGE THE BROKE LIFE OF MY FAMILY My name is Mrs OLIVER MASON  . I live in USA Florida and i am a happy woman today? I told my self that any Loan lender that could change my Broke Life and that of my family, i will refer any person that is looking for loan to Them. They gave happiness to me and my family, i was in need of a loan of $250,000.00 to start my life all over as a widow with 3 kids I meant this honest and GOD fearing loan lending company online that helped me with a loan of $250,000.00 U.S. Dollar, They are indeed GOD fearing People, working with a reputable loan company. If you are in need of loan and you are 100% sure to pay back the loan please contact them and please tell them that Mrs, OLIVER MASON referred you to them. contact via E_mail: alenxanderwalkerloanfirm@outlook.com

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  55. 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)  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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