In the instant case, the monthly contribution made by the members to the housing society/Association is in return for receiving the services of the Association in ensuring the maintenance and upkeep of the residential complex. There is a supply of service by Applicant to its members and the same is taxable under GST.
Levy of GST- In the instant case, applicant is a housing society located at Bhandup, Mumbai which manages, maintains and administers the society's property and raises funds for achieving the objects of the society, as provided in its Bye-Laws.
the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the applicant is liable to pay GST on the contribution received from its members?
2. If yes, whether the applicant can avail the benefit of exemption under entry no. 77 of Notification no.12/2017-CTR dated 28th June, 2017 for the value upto Rs. 7,500/- per month per member and in case the said monthly contribution exceeds Rs. 7,500/- per month, then the GST is leviable only on differential value in excess of Rs. 7,500/-?
3. Whether the applicant is liable to pay GST on amount collected from its members towards the following accounts as per the Bye laws:
a. Sinking Fund
b. Building Repair Fund
c. Election and Education Fund
4. Whether the supplies otherwise exempted from tax or charged at Nil rate shall be included in value in computing threshold amount of Rs. 7,500/- per month per member under entry no. 77 of Notification no.12/2017-CTR dated 28th June, 2017, for determining the tax liability?
5 Whether contribution collected to defray expenses for supply of following types of water are covered under entry 99 of Notification 2/2017-CTR dated 28th June, 2017 i.e. under HSN Code 2201 and attracts NIL rate of tax?
a. For Potable water received from MCGM u/s 169 of Mumbai Municipal Corporation Act, 1888, which is supplied/distributed to the fiats of the Members through an elaborate storage and pumping system.
b. Flush Water (Non Potable water) generated from Sewage treatment plant installed in the Society premises and supplied to all the flats for use in toilet flushing.
6. Whether input tax credit can be claimed on the expenses incurred for heavy repairs and maintenance of the society building premises and which are not capitalized in books of accounts?
Held that- In respect of question no. 1 the applicant is liable to pay GST on the contribution received from its members.
In respect of question no. 2, In case the said monthly contribution exceeds Rs. 7,500/- per month, then the GST is leviable on the entire value of the monthly contribution collected.
In respect to question no. 3, the applicant is liable to pay GST on amount collected from its members towards Sinking Fund, Building Repair Fund, Election and Education Fund.
In respect to question no. 4, charges, collected by the society on account of property tax, electricity charges and other statutory levies would only be excluded while calculating the threshold limit of Rs. 7,500/-.
In respect to question no. 5, contribution collected to defray expenses for supply of water is not exempt from tax.
In respect to question no. 6, it is held that, ITC on the expenses incurred for heavy repairs and maintenance of the society building will not be available to the extent of capitalisation as mentioned in Explanation of Section 17(5) of the CGST Act, 2017.
In the instant case, the monthly contribution made by the members to the housing society/Association is in return for receiving the services of the Association in ensuring the maintenance and upkeep of the residential complex. There is a supply of service by Applicant to its members and the same is taxable under GST.
Levy of GST- In the instant case, applicant is a housing society located at Bhandup, Mumbai which manages, maintains and administers the society's property and raises funds for achieving the objects of the society, as provided in its Bye-Laws.
the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the applicant is liable to pay GST on the contribution received from its members?
2. If yes, whether the applicant can avail the benefit of exemption under entry no. 77 of Notification no.12/2017-CTR dated 28th June, 2017 for the value upto Rs. 7,500/- per month per member and in case the said monthly contribution exceeds Rs. 7,500/- per month, then the GST is leviable only on differential value in excess of Rs. 7,500/-?
3. Whether the applicant is liable to pay GST on amount collected from its members towards the following accounts as per the Bye laws:
a. Sinking Fund
b. Building Repair Fund
c. Election and Education Fund
4. Whether the supplies otherwise exempted from tax or charged at Nil rate shall be included in value in computing threshold amount of Rs. 7,500/- per month per member under entry no. 77 of Notification no.12/2017-CTR dated 28th June, 2017, for determining the tax liability?
5 Whether contribution collected to defray expenses for supply of following types of water are covered under entry 99 of Notification 2/2017-CTR dated 28th June, 2017 i.e. under HSN Code 2201 and attracts NIL rate of tax?
a. For Potable water received from MCGM u/s 169 of Mumbai Municipal Corporation Act, 1888, which is supplied/distributed to the fiats of the Members through an elaborate storage and pumping system.
b. Flush Water (Non Potable water) generated from Sewage treatment plant installed in the Society premises and supplied to all the flats for use in toilet flushing.
6. Whether input tax credit can be claimed on the expenses incurred for heavy repairs and maintenance of the society building premises and which are not capitalized in books of accounts?
Held that- In respect of question no. 1 the applicant is liable to pay GST on the contribution received from its members.
In respect of question no. 2, In case the said monthly contribution exceeds Rs. 7,500/- per month, then the GST is leviable on the entire value of the monthly contribution collected.
In respect to question no. 3, the applicant is liable to pay GST on amount collected from its members towards Sinking Fund, Building Repair Fund, Election and Education Fund.
In respect to question no. 4, charges, collected by the society on account of property tax, electricity charges and other statutory levies would only be excluded while calculating the threshold limit of Rs. 7,500/-.
In respect to question no. 5, contribution collected to defray expenses for supply of water is not exempt from tax.
In respect to question no. 6, it is held that, ITC on the expenses incurred for heavy repairs and maintenance of the society building will not be available to the extent of capitalisation as mentioned in Explanation of Section 17(5) of the CGST Act, 2017.