Co-operative Housing society not eligible to claim ITC on receipt of works contract services

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.

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