HC stays order related to levy of GST on flat, villa maintenance charges

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 TSSivagnanam and Sathi Kumar Sukumara Kurup granted the interim stay pursuant to a writ appeal preferred by the Center 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.

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