<ul><li>Amid the confusion and concern among apartment residents, tax officials have clarified that the Goods and Services Tax (GST) on apartment maintenance charges is not a new levy, but an existing regulation since 2019.</li><li>In 2019, the Central Board of Indirect Taxes and Customs (CBIC) mandated flat owners to pay 18% GST if their monthly payments to the Resident Welfare Association exceed Rs 7,500.</li><li>However, the Madras High Court's 2021 judgment set aside the 2019 circular and ruled that GST will apply only to the portion of monthly maintenance charges that exceeds Rs 7,500.</li><li>The tax department is yet to appeal the High Court's order, and tax authorities in other states may choose not to follow the Madras High Court's interpretation.</li></ul>

GST On Apartment Maintenance Is Not A New Levy, Clarify Tax Officials

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