Can builder charge GST on monthly maintenance?

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.

Is GST applied on service charge?

So, as per law, Service Tax has been phased out by GST and customers are not supposed to pay it. However, the Service Charge is still applicable.

When can a builder charge maintenance charges?

The builders may ask for 12 months, or 24 months, of maintenance charges in advance at the time of possession. Once handed over to the RWA, the frequency of collecting the maintenance charges is decided by it.

What maintenance charges include?

“Maintenance charges primarily includes charges towards upkeep and maintenance of common areas and facilities, security services including CCTV, etc. Common facilities include elevators, club house and generators.

Are maintenance charges taxable?

Referring to the Karnataka High Court judgment in CIT vs. The expenditure on maintenance services is not to be deducted from income from house property and neither the income from maintenance charges recovered is to be treated as income from house property,” the Tribunal said.

Can Builder increase maintenance charges?

No. The builder will be responsible for maintenance charges till he hands over the possession to the homebuyer. Once the possession is delivered, society can charge such charges as per its own rules.

What is GST rate for Labour charges?

HSN Codes and GST Rates For Labour Charges:

Labour charges HSN code	Service rendered	Labour charges GST rate
998513	Contract Services for Staffing	18\%
998515	Long- Term payroll/staffing services	18\%
998516	Temporary permanent-from-staffing services for placements.	18\%
998517	Co-employment services of staffing.	18\%

What advanced maintenance charge?

This is charged for a certain period (1 year or 2 years for example). These funds are used maintenance of the project towards expenses like common area maintenance, repairs, common area electricity, lift maintenance salaries of security etc.

Can maintenance be charged before possession?

No, the builder cannot ask for maintenance for a property which is not yet in possession of the buyer. If the builder is charging such maintenance from you, you can file a RERA Complaint or a complaint in consumer court.

Can builders charge interest on maintenance?

The builder is required to open separate bank accounts for building maintenance corpus and building maintenance charges into which these amounts should be deposited. Any interest earned on these amounts will not accrue to the builder but would accrue to the same accounts.

Is GST applicable on other charges collected by builders?

However, under GST a single rate of 12\% is applicable on under construction properties whereas no GST is applicable on completed or ready to sale properties only if the Completion Certificate (CC) has been issued.

Can builder charge maintenance without OC?

Answers (1) No, the said builder is not eligible to claim maintenance before the completion of the total facilities. First he is required to complete everything then he can ask for the maintenance charges. Also, if you want to, then you can file a complaint in the consumer forum for deficiency in services.

What is the GST on maintenance charges in India?

GST on maintenance charges to be 18\% for flat owners paying over Rs 7,500 Flat owners will have to pay GST at 18\%, if their monthly contribution to the residents’ welfare association (RWA) exceeds Rs 7,500, the Finance Ministry said, on July 22, 2019.

Is GST applicable on builder’s fees?

The builder should be registered under GST. If the house owners form a society (RWA) & does the maintenance work themselves and the maintenance charge collected from each flat is upto Rs. 5000/- per month then GST is not applicable. Can a builder charge GST for maintenance?

What is the GST rate for residential societies in India?

However, under the GST regim e , residential societies collecting an aggregate of over Rs 20 lakh as maintenance charges must levy an 18 percent GST on the home owners. Monthly maintenance charges below Rs 7,500 are exempt from GST.

Can a housing society reduce its maintenance charges under GST?

While the housing society cannot reduce the rate at which it will levy GST on maintenance charges from its customers, it can reduce its maintenance charges, to pass on the benefits of input credits available to it.