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GST not leviable on reimbursement of property tax received from members of Housing Society
Case Law Details
- Case Name
- In re Emerald Court Co-operative Housing Society Limited (GST AAR Maharashtra)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- AAR Maharashtra, Advance Rulings
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In re Emerald Court Co-operative Housing Society Limited (GST AAR Maharashtra)
Question: – Determination of the liability to pay GST on Maintenance charges.
Emerald Court Co-op Housing Society Ltd is a Co-operative Housing Society (CHS). It looks after the upkeep of the society and its members. The CHS provides services to its members in the form of facilities or benefits like security, cleaning, repairs, water, common electricity etc. It also arranges to pay for the ancillary services like accounting, auditing, caretaker, etc.
Presently, the CHS is raising monthly bills...
Is GST attracts for the Reimbursement of Property tax paid by Owner (As we are the tenant on long lease and liability to discharge the tax is our part0
The conclusion drawn is not correct from plain reading of the order.
The society is liable to pay GST even on the property tax collected if it forms part of Rs 7500/- as the words”by whatever name called” are used in the order.
The society is liable to pay GST even on the property tax collected if it forms part of Rs 7500/- as the words”by whatever name called” are used in the order. Please clarify as to from where the conclusion can be made regarding non levy of GST as I have gone through the order a number of times.
The society is liable to pay GST even on the property tax collected if it forms part of Rs 7500/- as the words”by whatever name called” are used in the order. Please clarify as to from where the conclusion can be made that GST is not payable on the property tax as I have gone through the order a number of times.
The applicant is liable to pay GST on maintenance charges (by whatever name called) collected from its members, if the monthly subscription or contribution charged from the members ia more then Rs. 7,500/- per month.
It means GST is leviable also on the property tax levided by CHS to members. I could not able to find out in the whole judgement any specific mention about non applicability of GST on property tax.
I would appreciate, if you can through light on the same.
Government issued a set of FAQ’s in which it was stated that “Services provided by the Central Government, State Government, Union territory or local authority to a person other than business entity, is exempted from GST. So, Property Tax, Water Tax, if collected by the RWA/Co-operative Society on behalf of the MCGM from individual flat owners, then GST is not leviable.”