GST on RWA Maintenance Charges: Madras High Court Clarifies

Under GST law, maintenance charges paid to a Resident Welfare Association (RWA) are exempt from GST if they do not exceed ₹7,500 per month per member. If the charges exceed this limit, GST is applicable only on the amount exceeding ₹7,500. The Madras High Court confirmed this, ruling that GST should be levied only on the amount above ₹7,500, not the entire contribution.

Despite this ruling, some RWAs still charge GST on the full amount to avoid disputes with tax authorities, reflecting different interpretations of the law. While the court ruling provides clarity, RWAs’ cautious approach stems from the desire to avoid potential compliance issues.

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