Madras HC Stays GST Levy on Payments of Over Rs. 7,500 to RWAs

A division bench of the Madras High Court has stayed an order by a single judge bench of the same court which had ruled that resident welfare associations can collect goods and services tax (GST) charges on monthly maintenance exceeding Rs. 7,500 only and not on the full amount. The decision will impact RWAs that may have tweaked their invoicing rules to charge tax only on the amount exceeding Rs. 7,500, said experts.

“We are of the view that the legal issue has to be decided as the learned single bench not only quashed the proceedings of the Tamil Nadu Authority for Advanced Ruling, but also the circular issued by the department, which needs verification,” Justices TS Sivagnanam and SK Sukumara Kurup said. The division bench was hearing appeals against the single bench order. It will now hear the matter on December 9. S-ET

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