GST on Piped LPG in a Apartment Association

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We are a apartment owners association (RWA) registered under Co-op act. Our turnover exceeds 20 lakh, but exempted from GST due to ₹ 7500 per month per members clause, hence don't have GST number.

We have centralized piped LPG (reticulated gas system) We procure bulk domestic use cylinders from Authorised Indane agent and supply to all flats through pipes. Prepaid meters are installed in all the flats & residents need to recharge their smart card & pay as per their usage.

We, the Society don't make any profit, but incur some loss due to distribution loss which is covered by Maintenance charge.

We don't have an agreement with residents. However, piped LPG is mandatory as per fire department terms, residents don't have any option to keep LPG cylinder in their home. (so, it's statutory obligation)

Invoice for bulk cylinders are raised in the name of Society, not in individual's name.

Now the question is;

1) Does it qualify as reimbursement of expenses?

2) If not, do we have to obtain GST number & collect tax?

3) What is the GST rate? LPG is a 5% goods, not service

AI Summary

Apartment Owners Association's LPG Supply Exempt from GST Due to Monthly Member Clause; Formal Agreement Advised An apartment owners association, registered under the Cooperative Act, manages a centralized piped LPG system for its residents. Despite a turnover exceeding 20 lakh, it is exempt from GST due to a specific monthly member clause and therefore lacks a GST number. The association incurs minor losses covered by maintenance charges and does not profit from the LPG distribution. The LPG supply is mandatory for safety reasons, and invoices are issued to the society. Responses to their query suggest that the LPG supply qualifies as a reimbursement of statutory dues, negating the need for GST, but advise establishing a formal agreement with residents.