Housing society member contributions, maintenance and endowment collections are taxable except for separate water charges and limited exemptions.

Housing society maintenance of layout facilities supplied to members for consideration is a taxable supply under GST because the activity constitutes service in the course of business. The housing society exemption applies only to eligible common services and only up to the prescribed per-member threshold for the relevant tax period; amounts above that limit are taxable. Separate monthly water charges are exempt as water supply, but if water charges are bundled with other contributions they must be included in threshold computation. Collections linked to a member's sale of a site as an endowment fund do not qualify as reimbursement for common services and are taxable.

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Issues: (i) Whether maintenance of layout facilities by a housing society from amounts collected from its members is a taxable supply under GST; (ii) whether annual or lump-sum maintenance collections are exempt to the extent of the prescribed per-member threshold under the housing society exemption; (iii) whether water charges collected separately from members are liable to GST; and (iv) whether amounts collected from members selling their sites as an endowment fund are taxable.

Issue (i): Whether maintenance of layout facilities by a housing society from amounts collected from its members is a taxable supply under GST

Analysis: Provision by a society of facilities or benefits to its members for consideration falls within business. Maintenance of roads, parks, utilities and other common amenities for members involves supply of services for consideration in the course of business, and the statutory conditions for supply are satisfied.

Conclusion: Yes. The activity is a taxable supply under GST.

Issue (ii): Whether annual or lump-sum maintenance collections are exempt to the extent of the prescribed per-member threshold under the housing society exemption

Analysis: The exemption for services by a housing society to its members applies to reimbursement of charges or share of contribution for sourcing goods or services from third persons for common use, subject to the prescribed monthly per-member limit. Where collections are made in advance or as deposits and later applied for common services, the amount used in the relevant tax period must be apportioned per member for testing the threshold. If the per-member amount does not exceed the prescribed limit, exemption applies; if it exceeds the limit, the amount becomes taxable.

Conclusion: The exemption applies only up to the prescribed threshold per member per tax period. Amounts above that threshold are taxable.

Issue (iii): Whether water charges collected separately from members are liable to GST

Analysis: Water supplied as such is exempt. Where water charges are recovered separately on a monthly basis, they fall within the specific exemption for water. If, however, they are not separately shown and are included in the overall contribution for common services, they must be considered along with the total contribution for determining the exemption threshold.

Conclusion: Separate water charges are exempt from GST. If bundled with other contributions, they are to be considered for threshold computation.

Issue (iv): Whether amounts collected from members selling their sites as an endowment fund are taxable

Analysis: The amount collected from a member who is ceasing to be a member is not a reimbursement of charges for common use services. It is collected in connection with clearance or permission related to the site transfer and does not satisfy the housing society exemption conditions. Such collection is therefore taxable.

Conclusion: The endowment fund collection from selling members is taxable under GST.

Final Conclusion: The ruling recognizes GST liability on the society's maintenance activity, confines the exemption to the prescribed per-member threshold for eligible common services, exempts separately recovered water charges, and treats the site-sale linked endowment collection as taxable.

Ratio Decidendi: Services supplied by a housing society to its members for consideration are taxable supply, and exemption for common services is available only to the extent and manner specifically prescribed by the relevant notification.

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