Case Law Details
In re Gnanaganga Gruha Nirmana (GST AAR Karnataka)
1. The activity of maintaining the facilities at the layout from the funds collected from the members of the Society is a service attracting GST. The answer is Yes.
2. The contributions collected by the applicant from the member of the housing society either annually or once in ten years, if such amount when utilized for sourcing of goods or service from the third person for the common use of its member, the amount utilised in that particular tax period, from both individual contributions and from the endowment fund, must be divided by recipients of such service in the society and if the said amount per member does not exceed Rupees Seven thousand five hundred in that tax period, such amount is exempted from tax as per entry No.77 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended by the Notification No.2/2018-dated 25-01-2018. Suppose if that amount per member in that tax period exceeds Rupees Seven thousand five hundred, then entire amount is taxable.
3. The water charges collected separately on monthly basis is exempt from the levy of GST as per entry 99 of the Notification No. 2/2017 -Central Tax (Rate) dated 28th June, 2017 . If the applicant collects water charges as a part of service provided without being shown separately on the basis of usage and sourcing it from both the contributions and endowment fund, then the same should be added to the total consideration of services and apportioned which determining the threshold for the purpose of taxing or exemption as per the entry No.77 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended by the Notification No.2/2018-dated 25-01-2018.
4. The amount collected from the member who is selling the site and ceases to be a member, as endowment fund is liable to tax under GST.
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