Case Law Details
In re TVH Lumbini Square Owners Association (GST AAR Tamilnadu)
If the monthly maintenance charges payable by a member of the association exceeds Rs.7500 per month, in the context of exemption as per S.No. 77 of Notification 12/2017 – Central tax (Rate) dated 28.06.2017 as amended by Notification 2/2018 – Central Tax (Rate) dated 25.01.2018, the applicant is liable to pay GST only on the amount in excess of Rs.7500 or on the entire amount?
If a service by the applicant, a registered housing society/resident welfare association to its members by way of reimbursement of charges or share of contribution ,for sourcing of goods or services from a third person for the common use of its members, is such that it is above 7500 rupees per month effective from 25.01.2018 ( 5000 rupees before), it is not eligible S1 No 77 (c ) of Notification No.12/2017-C.T.(Rate) dated 28.06.2017 as amended for CGST and of Si No 77 (c ) of Notification No.11(2)/CTR/532(d-15)/2017 vide G.O. (Ms) No. 73 dated 29.06.2017 as amended for SGST. CGST and SGST at appropriate rates are to be paid by the members on the full amount of reimbursement of charges or share of contribution.
Also Read- Circular No. 109/28/2019-GST dated 22.07.2019
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING TAMILNADU
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In a same housing society if one owner (A) is paying Rs 6000 as Monthly Maintenance charges and another owner (B) paying Rs 8000.
1. How GST is applied?
2. Does GST be paid by both the owners (A) and (B)? or
3. Only by owner (B)?
OFFHAND
As read and personally understood: In the proceedings before the AAR both sides have addressed the AAR, only with reference to the Departmental ‘Notifications’. So much so, in making her submissions on the applicant’s behalf (see para.3) , the most crucial aspect of the well -settled and largely accepted legal position, – founded on the common law principle- known as the “Doctrine of Mutuality”, which stands adequately supported by the long line of decided court (both HC and SC) cases- have not been, regrettably so , urged / cited.
On the referred primary legal “ISSUE”, anyone (including GST law pundits actively engaged in field practice , at large) if so care and mind to, is suggested to usefully look up the earlier Posts / Articles , bedsides elsewhere , on this very website @-
GST on contribution charged by a Residential Welfare Association (see comment)
GST on Housing Societies for rendering Services to its Members (see comment)
Housing Association & ‘’Mutuality”- (Supplement II)
HOUSING ASSOCIATION -Mutuality Principle- Supplement I
“Mutuality’ – Doctrine of- A Critical Study