Case Law Details
In re NCC Urban One Apartment Owners Mutually Aided Co-Op Society Limited (NCCLIOMACS) (GST AAR Telangana)
In the case of NCC Urban One Apartment Owners Mutually Aided Co-Op Society Limited (NCCLIOMACS), the Authority for Advance Ruling (AAR) in Telangana provided clarifications on various questions related to the GST treatment of maintenance charges, electricity charges, and advance collections in a residential apartment complex. Below is a summary of the ruling:
Background: NCC Urban One Apartment Owners Mutually Aided Co-Op Society Limited (NCCLIOMACS) is a non-profit entity registered under the Telangana Mutually Aided Co-Op Society Act. It consists of residential flat owners and collects maintenance charges, which include common area electricity charges. The society also has rental income from commercial establishments.
Questions Raised and Rulings:
1. Exemption for Common Area Electricity Charges: The applicant sought clarification on whether common area electricity charges, collected on an actual basis from members based on their flat area and without any additional loading, are exempt from GST. The AAR ruled that since electricity is an exempted supply, common area electricity charges collected without any additional loading are also exempt from GST.
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