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2021 (7) TMI 652 - AAR - GSTLevy of GST - maintenance charges collected by Emerald Court Co-op Housing Society Ltd (CHS) from members of its society - no sale by the Co-operative Housing Societies to their own permanent members - doctrine of mutuality - Serial No. 77 of N/N. 12/2017 C.T.-(Rate) dated 28.06.2017 - HELD THAT:- GST is not liable to be paid on the amounts received by the society them from its members because of the principle of mutuality due to which, the society cannot be considered as an entity, separate from the individual members of the society - there were a lot of litigations and disputes by clubs/associations/ societies on this issue, earlier. However the said issue, with respect to Goods and Services Tax has been sought to be addressed by way of the proposed amendment made to Section 7 of the GST Act in the finance Budget, 2021. The amendment in section 7 has received the assent of the President of India on the 28th March, 2021 and in view of the same the issue of principles of mutuality in the case of cooperative societies like the applicant has been settled. In view of the amended Section 7 of the CGST Act, 2017, it is found that the applicant society and its members are distinct persons and the amounts received by the applicant, against maintenance charges, from its members are nothing but consideration received for supply of goods/services as a separate entity - The principles of mutuality, which has been cited by the applicant to support its contention that GST is not leviable on the maintenance charges collected by them from its members, is not applicable in view of the amended Section 7 of the CGST Act, 2017 and therefore, the applicant has to pay GST on the said amounts received against maintenance charges, from its members. The applicant is liable to pay GST on maintenance charges (by whatever name called) collected from its members, if the monthly subscription or contribution charged from the members is more then ₹ 7,500/- per month.
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