TaxTMI 
TaxTMI 
2020 (4) TMI 234
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....he issue raised by M/S Latest Developers Advisory Ltd., 3rd Floor, Apex Mall, Tonk Road, Lal Kothi, Jaipur, Rajasthan 302015 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97 (2) (b)& (e) given as under: - (b) Applicability of a notification issued under the provisions of this act; (e) Determination of liability to pay tax on any services; • Further, the applicant is unregistered person as per the declaration given by him in Form ARA-01 and the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT: • The Applicant has obtained temporary user ID 081900000727ARE for the purpose of filing the present Advance Ruling Application. The Applicant proposes to engage in the business of providing maintenance services to housing societies ('Society'). • For the purpose of providing maintenance services, the Applicant will enter into an agreement (hereinafter referred to as 'Contract I'....
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....red by sub-section (1) of section 11 of the CGST ACT, the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods, the description of which is specified in column (3) of the Schedule appended to this notification, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedule, from the whole of the central tax leviable thereon under section 9 of the CGST Act. Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Goods Rate (per cent.) Condition (1) (2) (3) (4) (5) 99 Heading 2201 Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container Nil Nil It can be observed that Entry no. 99 of the Notification provides exemption from levy of GST on supply of water, other than the specified categories. • The Applicant submits that since the Project is located in an area where there is no proper water supply, the Cust....
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....nal hearing was granted to the applicant on 09.01.2020 at Room no. 2.29 NCRB, Statue Circle, Jaipur. On behalf of the applicant Shri Rohit Jain Advocate, appeared for personal hearing. During the PH, he reiterated the submissions already made in the application and requested for two weeks' time for additional submissions. Additional submissions, comprised of sample of draft MOU for supply of water, sample invoice raised by the applicant and sample invoice of water supplier, received in this on 28-01-2020. 4. COMMENTS OF THE JURISDICTIONAL OFFICER The jurisdictional officer (STO, State Tax, Circle-N, Ward-3, Divisional Kar Bhavan, Jhalana Institutional Area, Jaipur, Rajasthan 302004) has submitted his comments vide letter dated 24.12.2019 which can be summarized as under: IMAGES 5. FINDINGS, ANALYSIS & CONCLUSION: (a) While going through the submissions made by the applicant we observe that the applicant proposes to engage in business of providing maintenance services with the housing societies (society) for which he will enter into an agreement (Contract-I). The maintenance services for Common Area Maintenance and the applicant levies goods and services tax ('G....
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.... the Resident Welfare Association (RWA) and Contract-II is for supply of water to the individual resident residing in the society (RWA). (h) We further find that GST on services provided by the Resident Welfare Association (RWA) to its resident members is @ 18% when each unit household in a society pays more than Rs. 7500/- per month for said services and the supplier of services (RWA in the present case) is registered by way of crossing over of threshold limit of Rs. 20 lakhs. The relevant portion of the provisions of law is as under-: Notification No. 12/2017-Centra1 Tax (Rate) dated 28.06.2017 Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 77 Heading 9995 Service by an unincorporated body or a non-profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution - (a) as a trade union; (b) for the provision of carrying out any activity which is exempt from the levy of Goods and service Tax; or (c) up to an amount of [seven thousand fiv....
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....ervices to the society (RWA) in two parts viz. all services of maintenance (other than supply of water) and supply of water. We further observe that as a general practice across trade and market, the maintenance services is inclusive of supply of water and hence supply of water provided by the applicant through a separate agreement raises a suspicion in its activity. The reason behind the suspicion is that the water received by the society (RWA) is used for multiple purpose i.e. for gardens, washing cleaning, swimming pool and for the use in the apartments etc. and is stored in the common underground water tank which is maintained by the society (RWA). (k) In view of the above facts, it is observed that the applicant seems to have bi-furcated the services provided to society (RWA) in order to escape the condition of Rs. 7500 per month per member or it might be crossing the GST registration threshold limit of Rs. 20 lakh. (l) We further observe that, in general each society consists of many residential towers, varying floors from three to fifteen plus and further each tower consists of many residential apartments which have a common underground and overhead water s....