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GST liability is exempted for RWA from Government

According to Government, GST Registration is mandatory for any kind of business or organization such as RWA which we called the Resident welfare association

According to Government, GST Registration is mandatory for any kind of business or organization such as RWA which we called the Resident welfare association. In this article, we are going to know all about RWA or exemption of GST liability for RWA in brief.


Everybody realizes that the GST system has made organizations smoother and more agreeable than any other time in recent memory. It has facilitated the business by making the conformity more advantageous. 

The GST chamber has given a few relaxations to specific kinds of association. 

  • As of late, the GST office has excluded the Resident Welfare Association(RWA) from the condition of Registration under GST and payment of GST liability.
  • To free some from the illegibility made by the usage of (GST), the government has been continuously turning out with explanations and notices. 

Anyhow of whether the Resident Welfare Association (RWAs) go under the limit of GST, is one such issue. 

  • To introduce more clearness relating to this issue, in a notice dated 13 July, the Service of Money, Government of India, said that benefits that are given by little housing society RWAs would not turn out to be more costly because of the usage of GST and in the GST system no changes have been made to the services that RWAs give to their individuals. 
  • As indicated by the notice, if individuals contribute under Rs5,000 every month to their RWA, their share would be excluded from GST. Other than that, an RWA would be excluded from GST if its yearly turnover is up to Rs20 lakh, anyhow of whether the individuals’ monthly share is more than Rs5,000 every month. 

For example:

  • In a little housing society that has 50- 60 flats and monthly maintenance charges are under Rs3,000, there will be no compelling reason to represent GST, as its yearly collection would be about Rs18 lakh. In any case, on the off chance that it had 500-600 flats, at that point, its yearly collection would be above Rs20 lakh and the share would be secured under GST. 
  • Then again, anyhow of whether the monthly contribution in a top-line housing society is Rs15,000, however, it has just 10 flats. This will imply that the yearly turnover of the RWA would accordingly be under Rs20 lakh a year, and therefore, the contribution of its individuals won’t pull in GST. 
  • At the end of the day, RWA is required to pay GST on the month to month memberships if the membership is more than Rs5,000 per member and the yearly turnover of the RWA—by method for providing of services and goods is likewise Rs20 lakh or more. 

In any case, RWA is required to collect GST on a monthly contribution can make a profit by method for the input tax credit.

• The Government’s notification additionally expresses that by coming under the limit of GST, RWAs can reduce their tax rate as they will have the option to avail the benefit of input tax credit which they have given to their providers to paid their normal daily working period.

• Consequently, they will have the option to benefit this credit based on duties paid to purchase generators, water siphons, hay furniture, taps, pipes, or other equipment; Just for services, for example, reform and support.

In that case, when RWA already paid central excise or value-added tax, those input tax could not benefit the credit and this was in addition to their work expenses.

1WHEN IS GST Registration Compulsory for RWA

· On the off chance that the total turnover of RWA surpasses ₹20 Lakh in a money related year, it will be required to take GST Registration Online

2 Why are RWAs excluded from GST liability?

• As of late, several issues were identified with GST, payable on the support imposed by the RWA to deliver goods and services to residents of an ascending society or private complex. These issues were thoroughly analyzed and CBIC chose to exclude RWA from GST liability.

3.  What are the above charges for RWA excluded from GST?

• Maintenance fees paid by a resident to supply RWA services are excluded from GST. As it may be, there is a whole possibility of support charges, for example, abs 7500 per month per part, which is absent from GST liability. 

4. What exemption has RWA given?

  • The central board of indirect tax and Customs (CBIC) has advised that if the annual turnover of Resident Welfare Association (RWA) does not exceed ₹ 20 lakh in the first year, then GST is not payable at that time. The same R.W.A. Whatever the GST liability, the monthly contribution by the occupiers is more than / 7,500 / -.
  • In any case, if the annual turnover exceeds s 20 lakhs and contribution by individuals is more than ₹ 7,500 / -, then GST liability will emerge.

5WHEN IS GST Liability Applicable ON RWA

RWA will be required to pay GST on the monthly support or share charged from its individuals, just if-

  • The conservation is above ₹7500/ – every month per part and the yearly total turnover of RWA is ₹20 lakhs or above, for example in the event that it has GST Registration.
  • These are the new relaxation of GST standards for the RWA and the resident.

If you are running any kinds of business you have GST Registration then you must know Late filing of GSTR-1

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