Home » Finance » GST Council recommends granting relief from GST on services provided by the Resident Welfare Associations (RWAs) to their Members

GST Council recommends granting relief from GST on services provided by the Resident Welfare Associations (RWAs) to their Members

In its 25th Meeting held on 18th January, 2018, the GST Council had recommended several measures granting relief from GST on a number of goods and servicesOne of the important reliefs granted by the Council is to enhance the limit of contribution made by members of a Resident Welfare Association (RWA) for the purpose of exemption from GST.The Council had recommended that the limit may be enhanced from Rs.5,000 to Rs 7,500 per month per memberServices provided by RWAs(unincorporated body or a registered nonprofit entity) to their members were hitherto exempt against contribution of up to an amount of five thousand rupees per month per member.Requests were received from several quarters to enhance the contribution limit of five thousand rupees per month per member for exemption. As a result, RWAs shall be required to pay GST on monthly subscription/contribution charged from its members if such subscription is more than Rs.7,500 per month per member and the Annual Turnover of RWA by way of supplying of services and goods is also Rs20 lakhs or more. Under GST, the tax burden on RWAs will be lower for the reason that they would now be entitled to Input Tax Credit (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 servicesITC of Central Excise and VAT paid on goods and capital goods was not available in the preGST period and these were a cost to the RWA. The Notifications giving effect to the above recommendations of the GST Council have been issued and have come into force on 25th January, 2018Accordingly, from 25 January 2018, the services provided by Resident Welfare Association to its members against contribution-up to an amount of Rs 7,500per month per member have been exempted from GST.

About Indianindustry Media

Leave a Reply

Your email address will not be published. Required fields are marked *

*

x

Check Also

CIL Achieves Record Coal Production of 703.91 MT up to 7th March 2024

The Coal India Limited (CIL) has achieved a record production of 703.91 million tonnes (MT) ...

ChipIN, the one-stop centre for chip designers across the country, gets fillip with support from semiconductor industry leaders

“This is a huge opportunity for current and budding entrepreneurs from Trivandrum and Kerala, to ...

Make in India not only for India but for the world: Power and New & Renewable Energy Minister Shri R. K. Singh exhorts manufacturing industry

The Union Minister for Power and New & Renewable Energy Shri R. K. Singh has ...

Measures by Government shall lead to three-fold increase in Natural Gas consumption by 2030: Petroleum Minister Hardeep S Puri

In a significant stride towards achieving 100% coverage of country’s area for the development of ...

Union Finance Minister Smt. Nirmala Sitharaman inaugurates first-ever National Conference of Enforcement Chiefs of the State and the Central GST Formations in New Delhi

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman inaugurated the first-ever National Conference ...

Historical Coal Production growth: Cheaper and Assured Availability

Our country is endowed with 5th largest geological reserves of coal.  We are 2nd largest consumers of ...

Coal Production and Dispatch from Captive and Commercial Mines Goes up by 27% and 29% respectively during Current Fiscal upto February 2024

There is month on month (m-o-m) and year-on-year (yoy) increase in coal production and dispatch ...

Shri Dharmendra Pradhan launches Project ODISERV

Union Minister of Education and Skill Development & Entrepreneurship, Shri Dharmendra Pradhan, launched Project ODISERV ...

Indian Railways achieve 1434.03 MT freight loading till February, 2024

On cumulative basis from April 2023 – February 2024, freight loading of 1434.01 MT was ...

Government amends Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 to ensure optimum utilization of available power generating capacity

The Government of India has amended the Electricity (Late Payment Surcharge and Related Matters) Rules of ...

WP2Social Auto Publish Powered By : XYZScripts.com