TaxTMI 
TaxTMI 
2026 (4) TMI 351
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....s from members for the said services. The applicant for FY-2024-25 revised its maintenance charges resulting in some members crossing threshold of INR 7500 per month for GST applicability, specifically when water charges are included. 3. The applicant's water supply is drawn both from its own on-site borewells - owned, operated and maintained by the Association and from external vendors, whose water is procured at INR 0.05 per liter and discharged into the common sump tank. The applicant declares that at no point the water is subject to any form of processing such as filtration, disinfection, softening or other treatment occurs in the supply lines. 4. Further, the applicant states that in certain members case they are below INR 7500/- threshold for maintenance charges alone, but if they opt for water supply through the association, the total collection for each of these members crosses INR 7500/- per month. 5. In view of the above, the applicant has sought advance ruling in respect of the following questions: a) Whether the supply of unprocessed, unbottled water by prestige Northwest Country Owners Associations to its members-sourced from its own borewells and....
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....exempt. 9. APPLICANT'S INTERPRETATION OF LAW:- The Applicant submits the following facts relevant to the issue: 9.1 The applicant submits reliance on SL. No. 99 of Notification No. 02/2017-Central Tax (Rate), a Nil rate of GST is prescribed on "water (other than aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized, and water sold in sealed containers)" under Tariff Heading 2201. Further, the applicant submits that the water supplied by them does not fall within the description of "water sold in sealed containers" or any other form of treated water. Accordingly, the supply of unprocessed water made by the applicant is covered under Entry 99 of the said notification and therefore attracts a Nil rate of GST. 9.2 The applicant submits reference of AAR No. 22/ARA/2023 dated 20.06.2023 (Tamil Nadu AAR) in the case of State Industries Promotion Corporation of Tamil Nadu Ltd. v. Commissioner of GST & Central Excise, wherein it was held that the supply of unprocessed water by an authority for public use is Nil-rated, and that ancillary cost recoveries connected with such supply are outside the scope of GST. 9.3 Further, the applicant states that as per Sect....
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....lify as reimbursements under Section 15(3) of the CGST Act and under Rule 33 of the CGST Rules, 2017, and do not attract GST. 10. PERSONAL HEARING PROCEEDINGS HELD ON 20.11.2025 CA Kiran Kumar S A, Authorised Representative of the applicant appeared for personal hearing proceedings held on 20.11.2025, before this authority and reiterated the submissions already made along with the application. FINDINGS & DISCUSSION 11. At the outset we would like to make it clear that the provisions of the CGST Act, 2017 and the KGST Act, 2017 are in pari materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 12. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant, relevant facts, and the arguments made by the applicant and the submissions made by their learned representative during the time of hear....
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....or managing, maintaining, and securing the building and its common facilities, protecting owners' rights, ensuring a safe and harmonious living environment, organizing resident welfare activities, and undertaking upkeep and improvements of shared assets and infrastructure. Members pay money for these activities as decided by Management committee. Thus, it constitutes that the applicant is performing certain activities. 17.3 From the above objectives, it is evident that the Association is constituted for the purpose of providing various services to its members relating to the maintenance of common areas, infrastructure and capital assets, thereby ensuring liveable conditions for the residents. 17.4 (ii) Legal Position under the CGST Act, 2017:- (a) Section 7 - Scope of Supply:- Section 7(1) of the CGST Act, 2017 provides: 7(1) For the purposes of this Act, the expression "supply" includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (aa) the activities....
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....ial complex and its common facilities. 17.7 Further, we are of the view that the supply provided by the applicant to its members is the service of a Home Owners Association, classifiable under SAC 999598, and not individual maintenance components charged separately. The exemption under Entry 77 applies only to services provided by an RWA by way of maintenance, subject to the prescribed threshold, and does not extend to treating each component independently when the supply of service is that of a homeowners' association. 17.8 Accordingly, the supply of water constitutes an integral component of the Home Owners' Association services provided by the applicant and cannot be regarded as an independent or distinct supply. The provision of water is intrinsically linked with the maintenance and upkeep of the residential complex, which is the principal supply rendered by the Association to its members. Therefore, the recovery of water charges from members, even if shown separately in the invoice and collected on actual consumption basis, would form part of the composite supply of services provided by the Association. Such recovery does not assume the character of an independen....