Builders & RWAs Liable for Overcharging Power Tariffs: GST Implications

Builders & RWAs Liable for Overcharging Power Tariffs: GST Implications Builders and Resident Welfare Associations #RWA's may be liable to pay Goods and Services Tax #GST if they overcharge flat owners for electricity tariffs, according to recent reports.

This development has significant implications for both parties involved and aims to ensure fair dealings in the real estate sector.

The GST Council has clarified that any additional charges collected by builders and RWAs on top of the actual electricity bill will be subject to GST.

As a result, both builders and RWAs will have to carefully assess and ensure that the electricity charges levied on flat owners are not excessive or surpass the actual amount paid to the electricity provider.