Flat or villa owners paying more than ₹7,500 a month to their resident welfare associations towards maintenance charges will now have to pay Goods and Services Tax (GST) at the rate of 18% for the entire contribution since a Division Bench of the Madras High Court on Thursday stayed a single judge’s order.
Justices T.S.Sivagnanam and Sathi Kumar Sukumara Kurup granted the interim stay pursuant to a writ appeal preferred by the Centre against an order passed by the single judge who had recently quashed a circular issued by the Department of Revenue under the Union Finance Ministry on July 22, 2019.
The circular required payment of GST for the entire monthly maintenance and not just for the amount over and above ₹7,500. The single judge had disagreed with such a stand and held that the tax could be collected only for the amount exceeding ₹7,500.
