GST on Society maintenance charges | GST on Housing society maintenance | % of GST Applicable

Summary

In this informative video, the speaker discusses the applicability of Goods and Services Tax (GST) on maintenance costs in housing societies. They clarify that an 18% GST is only applicable if the monthly maintenance charge exceeds ₹7,500. Various payment frequencies are explored, emphasizing that if the monthly fee is under this threshold, GST does not apply. The video also covers components of maintenance costs and situations involving one-time payments by builders. Viewers are encouraged to reach out with questions and to engage with the content by liking and subscribing for more insights.

Takeaways

• 😀 GST on maintenance costs is 18% for housing societies with monthly costs exceeding ₹7500.
• 😀 If the monthly maintenance cost is less than ₹7500, GST is not applicable.
• 😀 GST is applicable only on the monthly maintenance amount, not on quarterly or annual collections.
• 😀 Maintenance costs can include property tax, water tax, and sewage costs, which contribute to the total.
• 😀 In newly constructed societies, builders may collect a lump sum maintenance amount with GST included.
• 😀 If a builder collects a large maintenance fee in advance, it can be refundable within two years if not utilized.
• 😀 Understanding the applicability of GST on maintenance costs can help avoid unnecessary payments.
• 😀 The video encourages viewers to ask questions if they have doubts regarding GST on maintenance.
• 😀 It emphasizes the importance of subscribing, liking, and sharing the video for more informative content.
• 😀 Viewers are motivated to provide feedback or suggestions for future videos, fostering engagement.

Q & A

What percentage of GST is applicable on monthly maintenance in a cooperative housing society?

An 18% GST is applicable on monthly maintenance costs exceeding ₹7,500.

Is GST applicable on maintenance costs if they are below ₹7,500?

No, GST is not applicable if the monthly maintenance cost is below ₹7,500.

What happens if maintenance costs are collected quarterly or biannually and exceed ₹7,500?

If the total collected amount over the period exceeds ₹7,500, GST will still not be applicable if the monthly charge remains under ₹7,500.

How is GST calculated if the maintenance cost is above ₹7,500?

If the maintenance cost exceeds ₹7,500, an 18% GST is calculated on the total amount above that threshold.

Are there any other costs included in the maintenance cost that might affect GST applicability?

Yes, other costs such as property tax, water tax, and sanitation costs can be included in the total maintenance cost, impacting whether GST is applicable.

How does the GST application change for new societies collecting a lump sum maintenance amount?

New societies may collect a lump sum maintenance amount upfront, and if this amount exceeds ₹7,500, an 18% GST is applicable. If the amount is refunded within two years, this GST may be refundable.

What is the threshold amount for the monthly maintenance cost to be exempt from GST?

The threshold for GST exemption on monthly maintenance cost is ₹7,500.

What advice does the speaker give regarding GST payments?

The speaker advises viewers to ensure their monthly maintenance costs are checked against the ₹7,500 threshold to determine GST applicability.

How can viewers clarify their doubts regarding GST and maintenance costs?

Viewers can message the speaker directly with their doubts for clarification.

What motivates the speaker to create content for their channel?

The speaker feels motivated by viewer engagement, such as likes and shares, and encourages feedback and suggestions for future videos.