I am a resident of an apartment in Chennai. 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. As per agreement, the builder will maintain the building for 5 years. Request for comments/ advice more
Question- Is the building complete, Have the flat purchasers moved in, Why there is a clause that builder will look after the maintenance for 5 years. Now Co-op society act is Central law, get yourself registered. Please initiate Civil proceedings against the builder and start looking after the maintenance yourself and ask for accounts for the money he has collected from you all. more
Please get registered as cooperative housing society or residents welfare association. Then GST is applicable for maintenance charge exceeding Rs.7500 per member per month. more
Collecting GST is mandatory for Builder considering their other business transactions which will exceed threshold limit for them. To avoid this, its suggested to take care of maintenance work by Association themselves. We do like this only by employing the workers those who were used in building the flat. I am in Anna Nagar, Chennai. more
I wouldn't know the provisions in Chennai but in Maharashtra exemption upto Rs. 7,500/- per month per member applies to Housing Cooperative Society registered under MCS Act, 1960. If the builder himself is rendering service and Society is not formed, he would charge under his registration as builder and in this case threshold limit of Rs. 7,500/- would not apply. more
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By MOHIT PANDE
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