2021 (8) TMI 266

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..... Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- "Total bill raised by a housing Co-operative society if for example. Rs. 6500/- per month per member, break up of Rs. 6500/- is as below: 1) Repair and maintenance fund: - Rs. 1500/- 2) Sinking Fund: - Rs. 1500 /- 3) Other Maintenance charges: - Rs. 3500/- Total Maintenance Bill (1+2+3) - Rs. 6500/- Is society liable to collect any GST in above scenario. Or since total maintenance bill in less than Rs. 7500/-, no GST is required to be charged and collected by housing co-operative society? A. Statement of relevant facts having a bearing on the questions (s) raised. Forest County Housing Co-operative society is an unincorporated body and a non-profit entity registered under THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960. It is registered under GST si....

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....und: - Rs. 1500/- 3) Other Maintenance charges: - Rs. 3500/- Total Maintenance Bill (1+2+3) - Rs. 6500/- Is society liable to collect any GST in above scenario. Or since total maintenance bill in less than Rs. 7500/-, no GST is required to be charged and collected by housing co-operative society? Answer: - As per circular no. 109/28/2019-GST dated 22/07/2019 (F No 332/04/2017-TRU Govt of India Ministry of Finance, Department of Revenue (Tax research Unit) in the Sr. No. 1 and 2 which is mentioned as follows. SI.No. Issue Clarification 1. Are the maintenance charges paid by residents to the Resident Welfare Association (RWA) in a housing. Society exempt from GST and if yes, is there an upper limit on the amount of such charges for the exemption to be available? Supply of service by RWA (unincorporated body or a nonprofit entity registered under any law) to its own members by wav of reimbursement of charges or share of contribution up to an amount of Rs. 7500 per month per member for providing services and goods for the common use of its members in a housing society or a residential complex are exempt from GST, Prior to 25th January 2018, the exemption was available if....

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....IVE SOCIETIES ACT, 1960 has submitted that it is registered under GST since its aggregate turnover is more than 20 lakhs. It collects Maintenance charges from its members on a quarterly basis for providing services and goods for the common use of its members and issues Monthly bill (including Repair and Maintenance fund and Sinking Fund) which is less than Rs. 7500/- per month per member. 5.3 The Applicant is of the view that having obtained registration does not mean that the housing society has to compulsorily charge GST in the monthly maintenance bills raised on its members and have cited the provisions of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, which, at Sr. No.77 provides for the following exemption to housing societies, "a society may be registered under GST, however if the monthly contribution received from members is less than Rs. 7500/- (and the amount is for the purpose of sourcing of goods and services from a third person for the common use of its members), no GST is to be charged by the housing society on the monthly hill raised by the society. However, GST would be applicable if the monthly contribution exceeds Rs. 7,500/-." 5.4 As per the submi....

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....the exemption was available if the charges or share of contribution did not exceed Rs. 5000/- per month per member. The limit was increased to Rs. 7500/- per month per member with effect from 25th January 2018. [Refer clause (c) of Sl. No. 77 to the notification No. 12/2018- Central Tax (Rate) dated 28.06.2019] 2. A RWA has aggregate turnover of Rs. 20 lakh or less in a financial year. Is it required to take registration and pay GST on maintenance charges if the amount of such charges is more than Rs. 7500/- per month per member? No. If aggregate turnover of an RWA does not exceed Rs. 20 Lakh in a financial year, it shall not be required to take registration and pay GST even if the amount of maintenance charges exceeds Rs. 7500/- per month per member. RWA shall be required to pay GST on monthly subscription/ contribution charged from its members, only if such subscription is more than Rs. 7500/- per month per member and the annual aggregate turnover of RWA by way of supplying of services and goods is also Rs. 20 lakhs or more. Annual turnover of RWA Monthly maintenance charge Whether exempt? More than Rs. 20 lakhs More than Rs. 7500/- No Rs. 7500/- or less Yes Rs.....

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....the total amount recovered (by whatever name called) from its members on their supply of services. This aspect is clarified in the said circular at Sr. No. 5 which is reproduced below: SI.No. Issue Clarification 5 How should the RWA calculate GST payable where the maintenance charges exceed Rs. 7500/- per month per member? Is the GST payable only on the amount exceeding Rs. 7500/- or on the entire amount of maintenance charges. The exemption from GST on maintenance charges charged by a RWA from residents is available only if such charges do not exceed Rs. 7500/- per month per member. In case the charges exceed Rs. 7500/-per month per member, the entire amount is taxable. For example, if the maintenance charges are Rs. 9000/- per month per member, GST @18% shall be payable on the entire amount of Rs. 9000/-and not on [Rs. 9000 - Rs. 7500] = Rs. 1500/-. 5.11 The bills produced by the applicant on sample basis, are reproduced as below: Sr.No. Invoice No. and date Period of Bill (Quarterly) Current Invoice amount (Quarterly) as mentioned in top row of the bill /Monthly value arrived by dividing the total current invoice by the total no of months involved. Type of Flat 1 2....