Home Case Index All Cases GST GST + AAR GST - 2021 (3) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 895 - AAR - GSTLevy of GST - amounts collected from its members for setting up the 'Sinking Fund'/ Corpus Fund - supply of goods or services or both - HELD THAT:- The applicant making specific reference to the bye law at Sl.No.23, which deals with sources of funds and accounting and sub entry 3 of the said entry deals with sinking fund, claims that the fund shall be utilized exclusively for replacing plant, machinery or equipment as and when such items become unserviceable; they collect the amount towards corpus / sinking fund for future supply of services meant for its members; the corpus fund or sinking fund is mandatory under the Bye-laws of the Co-operative Societies / Resident Welfare Associations and is in the nature of deposit towards unforeseen events or planned events. Further, the applicant relies upon the ruling of this authority in the case of M/s. Prestige South Ridge Apartment Owners' Association, Bengaluru. Whether the amounts collected by the applicant towards sinking fund form part of consideration towards the services being provided by them? - HELD THAT:- There are certain distinguishable features of both advance and deposit and advances defer from the deposits. The amounts that are not returnable can be termed as advances. Also the bye laws of the applicant association are silent on this issue and hence the amounts collected are indubitably advances but not the deposits. Classification of the service to be provided by the applicant as the taxability of the amounts collected towards sinking fund - HELD THAT:- SAC 9995 covers the services provided / to be provided by the applicant to its members under “Services of Membership Association”. The said services are taxable to GST @ 18% in terms of Sl.No.33 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, as amended.
|