India, April 20 -- To clear up growing confusion among apartment residents, the Central Board of Indirect Taxes and Customs (CBIC) has clarified that housing societies must pay Goods and Services Tax (GST) on the entire maintenance amount if each member's monthly contribution exceeds Rs.7,500.

The clarification was issued after many residents questioned whether GST applies only to the portion above Rs.7,500 or the full amount. According to the CBIC, if a member's monthly maintenance contribution crosses Rs.7,500 and the housing society's annual turnover exceeds Rs.20 lakh, GST is applicable on the full contribution, not just the excess amount.

Deepak Kumar Jain, founder and CEO, TaxManager.in explains that the recent clarification from ...