FM Sitharaman addresses GST on apartment associations

New Delhi

Finance Minister Nirmala Sitharaman clarified in Parliament on Monday that apartment associations must register under GST only if their annual turnover exceeds ₹20 lakh (₹10 lakh in special category states). Additionally, GST applies only when the monthly maintenance charge exceeds ₹7,500 per member.

She explained that individual residents are not liable to pay GST directly—only the apartment associations are, as they are considered service providers. Associations with maintenance charges below ₹7,500 or turnover under the threshold are exempt from GST registration and payment.

Initially, maintenance charges up to ₹5,000 per month were exempt from GST, but this was increased to ₹7,500 based on the GST Council’s 25th meeting held in January 2018. If the maintenance amount exceeds ₹7,500, an 18% GST is applicable as per the Council’s recommendation.

Sitharaman added that taxpayers who have missed GST payments are given a chance to clear dues with no or reduced penalties, provided payment is made within the given timeframe.

To help taxpayers stay informed, the government regularly organizes awareness programs like Taxpayer Samvad, workshops, and sessions through GST facilitation centres. These are aimed at educating taxpayers and helping them understand their responsibilities and benefits under GST.

She also noted that there is no requirement for residents or associations to obtain official letters regarding their GST status under the CGST Act.