Case Law Details
Case Name : In re M/s Prestige South Ridge Apartment Owners' Association (GST AAR Karnataka)
Related Assessment Year :
Courts :
AAR Karnataka Advance Rulings
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In re M/s Prestige South Ridge Apartment Owners’ Association (GST AAR Karnataka)
Question 1) Whether the activity of procuring Goods and Services from third parties for upkeep and maintenance of Apartments and collecting the monies from its members to pay third party vendors is an activity liable to GST?
Answer 1. The activity of procuring Goods and Services from third parties for upkeep and maintenance of apartments and collecting the monies from its members to pay third parties is an activity liable to GST.
Question 2) If liable to GST, whether the exemption entry no 77 of notificatio...
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The subject write-up on the Ruling, authored by the inhouse EDITOR – albeit adverse to ‘taxpayer’, -as is noted, has failed to even make a specific mention of the principal and fundamental proposition, – why the claim for exemption by the ‘housing association’ by invoking the overriding common law principle, – ‘the doctrine of mutuality’ is entitled to be allowed, without the need to go into the other subsidiary points raised.
The Ruling, in any case, has turned out to be adverse to the petitioner; but without due consideration of the above proposition/ point raised from all its angles – mainly the plethora of court decisions (“PRECEDENTS”); not having been cited, stressed and argued or duly addressed by the AR (a CA), hence not been gone into by the AAR.
All the more intriguing and highly detestable is that has been cited, very wrongly, rather impetuously so, even in some of the recent Articles/ Writeups given publicity for taxpayers’ consumption, pre and post 2020-21 Amendment of the GST Law, alike!?
There has been no knowing /not been ascertainable despite a search, whether the subject Ruling has been contested before AAAR or court; and if yes, – unless pending as yet, – the final outcome!?!?
Any Expert HELP to be of eminent guidance?
Is this 7,500 limit average maintenance cost per member or actual cost per member, based on the are of the unit.
Example:
If there are two units in an apartment – one is 2000 sqft and another one 3000 sq ft.
Maintenance cost is 2.5 per sqft + common area electricity is .5 per sqft
Maintenance cost for Unit 1 (2000 sqft) is 5,000 + 1,000 = 6,000; unit 2 (3000 sqft) is 7500 + 1500 = 9000; average maintenance cost per member is 6,250 + 1,250 = 7500 per member.
In this case,
1. Will unit 1 member be exempted from GST?
2. Will both members be exempted from GST, since average monthly maintenance is within the prealscribed limit of 7,500
3. None will get the exemption because at lease one of the.member has a maintenance cost of over 7,500
4. Both will get the exemption because at lease one of the.member has a maintenance cost below 7,500
Thanks
Is the agency providing maintenance services including supply of electricity , to flat owners, which is purchased from Discom entitled to levy gst on domestic consumption of individual flats because electricity otherwise consumed by any other domestic consumer is not liable to pay gst but only electricity duty.
Hello ,
If we get any other income (shooting income) ,is gst should be charged on only other income or is it applicable to maintenance also ?
and can we include swimming pool income in maintenance or should we show as other income