Karnataka AAR Holds Water Charges by RWAs Must Be Included in GST Threshold; No Exemption as Independent Supply
The Karnataka Authority for Advance Ruling has clarified that water charges collected by Resident Welfare Associations (RWAs) from members, even if invoiced separately and based on actual consumption, must be aggregated with maintenance charges for GST exemption threshold purposes. The supply of water is not treated as an independent exempt supply but as part of the composite service provided by the association.
