In re Mahavir Nagar Shiv Shrushti Co-op. Housing Society Limited (GST AAAR Maharashtra)
Co-operative society not eligible to claim ITC on receipt of works contract services
The AAAR, Maharashtra in the matter of M/s. Mahavir Nagar Shiv Shrushti Co-op Housing Society Ltd. [Order No. MAH/AAAR/AM-RM/10/2022-23 dated September 30, 2022] has upheld the order passed by the AAR, Maharashtra, holding that a co-operative housing society cannot claim Input Tax Credit (“ITC”) of the Goods and Service Tax (“GST”) paid to its appointed contractor for repairs, renovation and rehabilitation work carried out in the society.
Facts:
M/s. Mahavir Nagar Shiv Shrushti Co-op Housing Society Ltd. (“the Appellant”) is a registered co-operative housing society. The objectives of the Appellant are to manage, maintain and administer the property of the society. The Appellant raises funds by collecting charges from the members of the society which includes property taxes, water charges, common electricity charges, repair and maintenance funds, etc. The said charges are collected by the Appellant on monthly or quarterly basis by issuing invoices. The Appellant is not involved in any other work other than what is mentioned in its byelaws. The Appellant has further appointed one M/s. Unique Rehab Pvt. Ltd. for carrying out major repairs renovations and rehabilitation works for which it is charging GST.
The Appellant has filed this appeal against the order of the AAR, Maharashtra [Advance Ruling No.GST-ARA-19/2021-22/B-94 dated November 10, 2021], wherein, it was held that the Appellant is not eligible to claim ITC on the input and inputs services for repairs, renovation and rehabilitation work, as the Appellant is not providing any works contract services to its members.
The Appellant contended that, it is providing works contract services, i.e. receiving services from a contractor and providing them unaltered to its members and charging GST at the standard rate of 18%, it is entitled to claim ITC for the tax paid on the works contract services received from the contractor.
Issue:
Whether the Appellant is eligible to claim ITC on the ground that it is providing works contract services to its members?
Held:
The AAAR, Maharashtra in Order No. MAH/AAAR/AM-RM/10/2022-23 held as under:
