Case Law Details
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 on its members which consist of 2 parts, one is property tax on which GST is not being charged and another is ‘Maintenance charges’ on which GST is being charged.
Hence we seek opinion on the chargeability of GST on such transaction since there could be no sale by the Co-operative Housing Societies to its own permanent members, for doctrine of mutuality would come into play, fo elaborate, CHS treated itself as the agent of the permanent members in entirely and advanced the stand that no consideration passed for the services rendered by the society to its members and there was only reimbursement of the amount by the members and therefore no GST could be levied.
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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.”