TaxTMI 
TaxTMI 
2021 (3) TMI 895
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....ZE, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a non-profit making residents welfare Association formed by individual apartment/flat owners for the purpose of maintaining and managing the common areas and facilities in the condominium and the Applicant is duly registered under the provisions of the Karnataka Apartment Ownership Act, 1972 ('KAOA Act'). The applicant is also registered under GST Act. The applicant submits that in addition to the regular maintenance, they also required to undertake periodic up-keep ....
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....ies in accordance with its registered Bye-laws and also as per the KAOA Act. 4.2 The Applicant, having about 208 members, is engaged in providing maintenance and repairs of common areas such as the corridors, garden, play area, pathway, clubhouse, swimming pool, gymnasium, electric equipment etc., and payment of electricity and other outgoings by collecting monthly maintenance charges from its members based on the area of occupancy. 4.3 The applicant also collects certain amounts towards sinking fund, in addition to regular maintenance amounts, to meet the expenditure of planned / unplanned outlay in future, under its bye-laws. 5. Applicant's Interpretation of Law: 5.1 The Applicant submitted that they perform the duties in accordan....
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....received by the Applicant Association is in the nature of deposit for future planned/unplanned event and not for the purpose of supplying any goods or services in discharge of any contractual obligation. Hence, the amount received by the Applicant for setting up Sinking Fund would not be liable to tax under the Act. PERSONAL HEARING PROCEEDINGS HELD ON 28/01/2021 6. Sri K.S.Harish, Vice President, Advocate & Authorized Representative of the applicant appeared for personal hearing proceedings held on 28/01/2021 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 7. We have considered the submissions made by the applicant in their application for advance ruling. We also considered the issues involved, on which ad....
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....ded by them. In this regard we invite reference to Section 2(31) of the CGST Act, 2017, which defines the term "consideration" and the same is as under: "(31) consideration in relation to the supply of goods or services or both includes- (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shal....