Monthly maintenance exemption applies monthly; advances and sinking funds taxable on receipt while voluntary donations are non taxable.

Entry No.77 exemption for common-use supplies applies on a monthly basis and cannot be aggregated annually or by invoicing period. Water procured and distributed by the association is incidental to a composite maintenance service and therefore not entitled to the standalone goods exemption. Corpus/sinking fund collections are advances for future supplies and attract GST on receipt under time-of-supply rules. Accounting treatments such as depreciation do not alter levy, valuation or timing. Sinking/repair fund contributions must not be clubbed with recurring monthly maintenance for the Rs.7,500 exemption. Voluntary festival donations lack consideration and are not taxable.

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Issues: (i) Whether the exemption of Rs.7,500 per member per month under Entry No.77 of Notification No.12/2017-Central Tax (Rate) is to be ascertained monthly or on an annual/invoicing-period basis; (ii) Whether charges for water procured through tankers or BWSSB collected by the association fall under Entry No.99 of Notification No.02/2017-Central Tax (Rate) as exempt goods; (iii) Whether corpus/sinking fund collections are liable to GST at the time of collection or only when applied towards supply; (iv) Whether application of deposit towards consideration can be proportioned to depreciation charged in books for a capital asset; (v) Whether sinking/repair fund contributions are eligible for the Rs.7,500 per month exemption and whether they must be clubbed with common area maintenance for that purpose; (vi) Whether voluntary contributions for festivals are liable to GST.

Issue (i): Whether the Rs.7,500 per member per month exemption under Entry No.77 is to be ascertained monthly or annually.

Analysis: Entry No.77 expressly states the exemption amount as Rs.7,500 per month per member for sourcing goods or services for common use. The text of the notification and its phrasing indicate a monthly quantum; therefore aggregation annually or by invoice period is not supported. The Authority also considered relevant clarifications and the scope of the entry as addressing recurring monthly maintenance collections.

Conclusion: The exemption under Entry No.77 is applicable on a monthly basis and cannot be aggregated annually or by other invoicing periods (decision in favour of the applicant on this issue).

Issue (ii): Whether water charges collected by the association qualify as exempt goods under Entry No.99.

Analysis: Although water as a commodity may fall under Entry No.99 when supplied independently, the Authority examined the nature of the applicant's activity and found that procurement, storage and distribution of water are integral to the upkeep and maintenance services provided to members. Under the definition of composite supply, the principal supply is maintenance services (SAC 9995/999598) and water supply is incidental. Pre-GST precedents cited by the applicant concern a different regime and are not determinative under GST's broader supply and composite supply concepts.

Conclusion: The water charges collected are incidental to a composite supply of maintenance services and Entry No.99 exemption for water as goods is not available to the applicant (decision against the applicant on this issue).

Issue (iii): Whether corpus/sinking fund collections are taxable at the time of receipt or only when applied towards supply.

Analysis: Section 2(31) and time of supply provisions (Section 13) distinguish advances and deposits; where an amount is an advance towards future supply, time of supply is the earlier of invoice date or receipt of payment. The Authority examined the character of corpus/sinking fund collections and found them to be advances for future supply (ring-fenced but intended for future services), triggering time of supply on receipt under Section 13.

Conclusion: Corpus/sinking fund collections constitute advance receipts towards future supplies and attract GST at the time of receipt (decision against the applicant on timing of taxability).

Issue (iv): Whether application of deposit towards consideration can be proportioned to depreciation charged in accounting records.

Analysis: The CGST Act governs levy, valuation and timing; accounting treatments such as depreciation or internal transfers do not determine taxability. The acquisition of a capital asset from collected funds and subsequent depreciation are accounting matters and do not, by themselves, create taxable supplies or alter statutory time-of-supply rules.

Conclusion: Depreciation-based apportionment of deposits does not govern GST liability; accounting treatment is not relevant for determining levy or timing (decision against the applicant on this contention).

Issue (v): Whether sinking/repair fund contributions qualify for Entry No.77 exemption and whether they must be clubbed with monthly maintenance charges for determining eligibility.

Analysis: The Authority examined the distinct nature and purpose of recurring monthly maintenance charges versus corpus/sinking funds (the latter being one-time or infrequent, ring-fenced for capital/major non-recurring expenditure). Circular No.109/28/2019-GST clarifies that Entry No.77 applies to recurring monthly maintenance. Given the separate character and intended use of sinking funds, they are not to be clubbed with monthly maintenance for the Rs.7,500 per month exemption.

Conclusion: Sinking/repair fund contributions do not qualify for aggregation with monthly maintenance for Entry No.77 and are not covered by the Rs.7,500 per month exemption at the time of collection (decision against the applicant on aggregation; in favour of revenue for taxability at receipt).

Issue (vi): Whether voluntary contributions for cultural festivals are liable to GST.

Analysis: Supply and consideration under Sections 7 and 2(31) require a payment made in respect of, in response to, or for the inducement of supply. The festival contributions are voluntary, without obligation or quid pro quo, and no specific supply is promised in return; they lack the element of consideration required for GST levy under Section 9.

Conclusion: Voluntary donations collected for cultural festivals do not constitute consideration for a supply and are not liable to GST (decision in favour of the applicant on this issue).

Final Conclusion: The Authority rules that (i) the Rs.7,500 exemption under Entry No.77 is monthly; (ii) water supplied through the association forms part of a composite maintenance service and Entry No.99 exemption does not apply; (iii) corpus/sinking fund receipts are advances taxable at receipt; (iv) accounting depreciation cannot determine GST timing or liability; (v) sinking funds are not to be clubbed with monthly maintenance for the Rs.7,500 exemption; and (vi) voluntary festival contributions are not taxable. The ruling results in mixed outcomes with the association succeeding on the monthly exemption point and on voluntary donations, but not on water treatment or corpus/sinking fund treatment.

Ratio Decidendi: Where a membership organisation provides upkeep and maintenance services, incidental supplies (such as water) form part of a composite supply classifiable as services; time of supply and taxability of advances are governed by Sections 13 and 2(31) of the CGST Act, 2017; accounting treatments like depreciation do not determine GST liability; Entry No.77 exemption is expressly monthly and sinking/corpus funds are not to be clubbed with recurring maintenance for that exemption.

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