{"id":3649,"date":"2018-01-20T10:36:16","date_gmt":"2018-01-20T05:06:16","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3649"},"modified":"2021-12-24T17:48:24","modified_gmt":"2021-12-24T12:18:24","slug":"resident-welfare-association-housing-society-under-gst","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/","title":{"rendered":"Resident Welfare Association\/ Housing Society in GST"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e8450a3d9a4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e8450a3d9a4\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#Registration_requirement_for_RWA\" title=\"Registration requirement for RWA\">Registration requirement for RWA<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#GST_Registration_Document_Requirement\" title=\"GST Registration Document Requirement\u00a0\">GST Registration Document Requirement\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#Is_RWA_claim_a_GST_ITC_on_inputs_services_used_to_supply_its_members\" title=\"Is RWA claim a GST ITC on inputs &amp; services used to supply its members?\">Is RWA claim a GST ITC on inputs &amp; services used to supply its members?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#TAX_RATE_APPLICABLE_ON_RWA\" title=\"TAX RATE APPLICABLE ON RWA\">TAX RATE APPLICABLE ON RWA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#Composition_Scheme\" title=\"Composition Scheme\">Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#RETURNS_AND_DUE_DATES\" title=\"RETURNS AND DUE DATES\">RETURNS AND DUE DATES<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#GSTR-3B_Return\" title=\"GSTR-3B Return\">GSTR-3B Return<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#FEE_FOR_LATE_FILING_OF_GST_RETURN\" title=\"FEE FOR LATE FILING OF GST RETURN\">FEE FOR LATE FILING OF GST RETURN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#Review_of_the_approval_process_of_a_newly_incorporated_company\" title=\"Review of the approval process of a newly incorporated company\">Review of the approval process of a newly incorporated company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/resident-welfare-association-housing-society-under-gst\/#Compulsory_condition_for_registering_a_company_in_India\" title=\"Compulsory condition for registering a company in India\">Compulsory condition for registering a company in India<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/shutterstock_728111731-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11760\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/shutterstock_728111731-1.jpg\" alt=\"\" width=\"1000\" height=\"667\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/shutterstock_728111731-1.jpg 1000w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/shutterstock_728111731-1-300x200.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/shutterstock_728111731-1-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Registration_requirement_for_RWA\"><\/span><strong><span style=\"text-decoration: underline;\">Registration requirement for RWA<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Association of Resident Welfare (RWA) is classified in accordance with the Income Tax Law as an Association of persons. A Resident Welfare Association (RWA) is a company that represents people who live in a community or a company&#8217;s interests.<\/p>\n<p>The association is responsible for supervising the occupants&#8217; everyday problems, arranging events, supervising facilities in the apartments and houses, and also representing the members where necessary on issues related to the place.<\/p>\n<p>If the aggregate turnover of such RWA is up to Rs.20 Lakh in a financial year, then such supplies would be exempted from<a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\"> GST<\/a> even if charges per member are more than Rs. 7500.<\/p>\n<p>An RWA has an annual Receipt turnover in a FY of INR 20,00,000\/- or less. Are <a href=\"https:\/\/carajput.com\/blog\/tag\/gst-registration-procedure\/\">GST registrations<\/a> required and GST charged for maintenance?<\/p>\n<p>No, the RWA will not be required to register and charge GST as, in the financial year, the total turnovers of its INR 20,00,000\/- do not exceed Rs 7,500 per month per member.<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/rwa.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11755\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/rwa.jpg\" alt=\"\" width=\"591\" height=\"318\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/rwa.jpg 591w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/rwa-300x161.jpg 300w\" sizes=\"(max-width: 591px) 100vw, 591px\" \/><\/a><\/p>\n<p>Furthermore, it would not be necessary to register and charge GST where the total turnover in a financial year exceeded INR 20,00,000\/-, but the maintenance monthly costs per member were up to rs.7,500. The above can be concluded in the below summary table:<\/p>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"125\"><strong>Sl. No.<\/strong><\/td>\n<td width=\"125\"><strong>Is GST chargeable for any goods\/services supplied by the RWA?<\/strong><\/td>\n<td width=\"125\"><strong>Are the maintenance charges per month per member more than Rs.7,500?<\/strong><\/td>\n<td width=\"125\"><strong>Is GST registration required?<\/strong><\/td>\n<td width=\"125\"><strong>Is the aggregate turnover Rs.20 lakh or more in the financial year?<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"125\">1<\/td>\n<td width=\"125\">No<\/td>\n<td width=\"125\">No<\/td>\n<td width=\"125\">No<\/td>\n<td width=\"125\">No<\/td>\n<\/tr>\n<tr>\n<td width=\"125\">2<\/td>\n<td width=\"125\">No<\/td>\n<td width=\"125\">No<\/td>\n<td width=\"125\">No<\/td>\n<td width=\"125\">Yes<\/td>\n<\/tr>\n<tr>\n<td width=\"125\">3<\/td>\n<td width=\"125\">No<\/td>\n<td width=\"125\">Yes<\/td>\n<td width=\"125\">No<\/td>\n<td width=\"125\">No<\/td>\n<\/tr>\n<tr>\n<td width=\"125\">4<\/td>\n<td width=\"125\">Yes<\/td>\n<td width=\"125\">Yes<\/td>\n<td width=\"125\">Yes<\/td>\n<td width=\"125\">Yes<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"GST_Registration_Document_Requirement\"><\/span><strong>GST Registration Document Requirement\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Registration-Requirements1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11740\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Registration-Requirements1.jpg\" alt=\"\" width=\"759\" height=\"626\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Registration-Requirements1.jpg 759w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Registration-Requirements1-300x247.jpg 300w\" sizes=\"(max-width: 759px) 100vw, 759px\" \/><\/a><strong><span style=\"text-decoration: underline;\">Exemption Limit for RWA and Updates<\/span><\/strong><\/p>\n<p>RWA shall be required to pay <a href=\"https:\/\/carajput.com\/blog\/gst\/\">GST<\/a> on monthly subscription\/contribution charged from its members if such subscription is more than Rs. 7500 per member and the annual turnover of RWA by way of supplying of services and goods is also Rs. 20 lakhs or more.<\/p>\n<p>25th GST Council Meeting enhances the exemption limit of Rs 5000\/- per month per member to Rs 7500\/- in respect of services provided by Resident Welfare Association (unincorporated or nonprofit entity) to its members against their individual contribution.<\/p>\n<p>The late fee for delayed filing of GSTR-1 is being reduced to Fifty Rupees per day and shall be Rupees Twenty Five in case of Nil returns.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_RWA_claim_a_GST_ITC_on_inputs_services_used_to_supply_its_members\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Is RWA claim a GST ITC on inputs &amp; services used to supply its members?<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong><span style=\"text-decoration: underline;\">Input Tax Credit (ITC) Allowed: <\/span><\/strong>If the Society becomes liable to pay GST, it is allowed to take Input Tax Credit under Sec 16 (1) of <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">CGST Act<\/a> subject to conditions for taking the input tax credit. Housing Society is entitled to ITC in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture, etc.), goods (taps, pipes, other sanitary\/hardware fillings, etc.), and input services such as repair and maintenance services \u2013 Lift AMC, Housekeeping, Security, Fire AMC, Repairs &amp; Maintenance, Contract staff, Accounting &amp; Auditing Services, and other such services.<\/p>\n<p>Yes, where the fee for such supplies exceeds Rs.7,500 per month per member, most of the <a href=\"https:\/\/carajput.com\/blog\/tag\/conditions-for-claiming-the-itc\/\">ITCs<\/a> would be available as follows:<\/p>\n<ul>\n<li>Input services like AMC on CCTV, maintenance, and repair services.<\/li>\n<li>Goods like pipes, tapes, other toilet fillers, etc.<\/li>\n<li>Capital products like lawn mobilizers, generators, pumps for water, etc.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>ITC of Central Excise and VAT paid on goods and capital goods were not available in the pre-GST period and these were a cost to the RWA.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"TAX_RATE_APPLICABLE_ON_RWA\"><\/span><strong><span style=\"text-decoration: underline;\">TAX RATE APPLICABLE ON RWA<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As per\u00a0<span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/taxguru.in\/goods-and-service-tax\/notify-rates-supply-services-cgst-act.html\"><strong>Notification No. 11\/2017-Central Tax (Rate)<\/strong><\/a><\/span> \u00a0for services related to Services furnished by businesses, employers, and professional organizations Services, Services furnished by trade unions &amp; Services furnished by other membership organizations falling under SAC 9995 the Central Tax Rate is 9%. Similar Provisions are made under <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">SGST Acts<\/a> also. Therefore there will a levy of\u00a0<strong>18% (CGST @ 9% + SGST @9%)<\/strong><strong>.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Composition_Scheme\"><\/span><strong><span style=\"text-decoration: underline;\">Composition Scheme<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Housing Society is not eligible for Composition Scheme.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"RETURNS_AND_DUE_DATES\"><\/span><strong><span style=\"text-decoration: underline;\">RETURNS AND DUE DATES<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>All the Registered Persons (Normal Registration) will have to file 3 returns in a month.<\/p>\n<p><strong>GSTR \u2013 1<\/strong> by 10th of the following month\u00a0 \u2013 Towards Outward Supply (Maintenance Charges)<\/p>\n<p><strong>GSTR \u2013 2<\/strong> by 15th of the following month \u2013Towards Expenses Side\u00a0and<\/p>\n<p><strong>In GSTR \u2013 3<\/strong> by 20th of the following month \u2013\u00a0Monthly consolidated return and<\/p>\n<p><strong>GSTR \u2013 9<\/strong> by 31st December\u00a0of the Following Year.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"GSTR-3B_Return\"><\/span><a href=\"https:\/\/carajput.com\/gst\/gst-return.php\"><span style=\"text-decoration: underline;\">GSTR-3B Return<\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>GSTR-3B return will have to be filed by all taxpayers in addition to GSTR-1, GSTR-2 and GSTR-3 return. Earlier, GSTR-3B returns were to be filed for the month of July to December 2017.<\/p>\n<p>IN the 23rd council meeting, it has been announced that the GSTR-3B return must be filed for all months from July 2017 to March 2018. The due date for the GSTR-3B return will be the 20th of every month.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"FEE_FOR_LATE_FILING_OF_GST_RETURN\"><\/span><span style=\"color: #000000;\"><strong>FEE FOR LATE FILING OF<a style=\"color: #000000;\" href=\"https:\/\/carajput.com\/gst\/gst-return.php\"> GST RETURN<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Penalties-Interest-100-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-11738\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Penalties-Interest-100-1-1024x772.jpg\" alt=\"\" width=\"550\" height=\"415\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Penalties-Interest-100-1-1024x772.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Penalties-Interest-100-1-300x226.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Penalties-Interest-100-1-768x579.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/GST-Penalties-Interest-100-1.jpg 1163w\" sizes=\"(max-width: 550px) 100vw, 550px\" \/><\/a><\/p>\n<p>When a Registered Dealer misses filing GST Returns within DUE DATE late fees is levied by the government.<\/p>\n<p>If GSTR-1 is not filed within the due date you will be liable to pay late fees of Rs. 200 per day of delay<\/p>\n<p><strong>Records and Accounts<\/strong><\/p>\n<p>Maintain proper Records of Supply &amp; Expenses and preserve such records for 72 Months.<\/p>\n<p>POPULAR BLOG:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Review_of_the_approval_process_of_a_newly_incorporated_company\"><\/span><a href=\"https:\/\/carajput.com\/learn\/review-of-new-company-approval-process.html\">Review of the approval process of a newly incorporated company<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Compulsory_condition_for_registering_a_company_in_India\"><\/span><a href=\"https:\/\/carajput.com\/learn\/mandatory-requirements-for-registering-a-company-in-india.html\">Compulsory condition for registering a company in India<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Registration requirement for RWA The Association of Resident Welfare (RWA) is classified in accordance with the Income Tax Law as an Association of persons. A Resident Welfare Association (RWA) is a company that represents people who live in a community or a company&#8217;s interests. The association is responsible for supervising the occupants&#8217; everyday problems, arranging &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[870,877,869,876,874],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3649"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3649"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3649\/revisions"}],"predecessor-version":[{"id":20434,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3649\/revisions\/20434"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}