The new GST shall not arise more tax implications on the services tendered by the resident welfare association to the residents of the housing society provided that the aggregate of the turnover of the RWA does not exceeds the Rs. 20 lakh mark in a financial year.
The notification by the central government stands true even when the charges or subscription per member are over Rs. 5000. Nonetheless, RWA shall come under the GST ambit, when the subscription charged by its members as well as annual turnover for the RWA in respect of supplying goods and services breaches Rs.5000 and Rs. 20 lakh benchmark respectively. The GST rate of 18% shall apply on the aforesaid RWA.
Also, as per the new reformatory GST regime, tax implication on RWA shall be lower as they are now allowed input tax credit on taxes paid on capital goods including water pumps, lawn, furniture, sanitary fixture and fittings etc and other services such as maintenance and repair.
"No GST on annual subscription/fees charged as lodging/boarding charges by educational institutions from students for hostel," an official statement from the ministry said.
In respect of education, any service provide to faculty, staff as well as students is fully exempt from the scope of GST.