Housing societies are required to pay Goods and Services Tax (GST) on the entire monthly maintenance amount if the contribution from each member exceeds ₹7,500, the Central Board of Indirect Taxes and Customs (CBIC) has clarified in a recent circular.
The Ministry of Finance & Corporate Affairs has sought to clear the confusion among apartment owners and resident welfare associations (RWAs) over imposition of Goods & Services Tax (GST) on monthly maintenance.
Many salaried employees in India reside in housing societies where they often face the dual financial burden of paying rent to their landlords and maintenance charges to the society. This situation raises a pertinent question- can these maintenance charges be claimed for tax exemption under the House Rent Allowance (HRA) provisions?
