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2021 (8) TMI 266 - AAR - GSTExemption from GST - Repair and maintenance fund - sinking fund - applicability of exemption Limit of ₹ 7500/- on the components of maintenance bill by the housing co-operative Society to members of society - HELD THAT:- A plain reading of the Circular No. 109/28/2019-GST dated 22/07/2019 (F No 332/04/2017-TRU Govt Of India, Ministry of Finance, Department of Revenue (Tax research Unit) makes it clear that, it is the intention of the Government, to tax Housing Societies under GST Laws subject to the condition that the reimbursement of charges or share of contribution of the members exceed an amount of ₹ 7500/- per month per member for Supply of service rendered by Resident Welfare Association (unincorporated body or a non- profit entity registered under any law) to its own members. In addition, it is also clarified that if the Gross turnover exceeds the 20 lakhs, but maintenance charges collected are up to or less than ₹ 7500/-per member per month, then no is GST applicable - the Government has clarified the eventualities of transactions and has removed the doubts of the taxpayers regarding the applicability of GST. It is a fact that, the applicant has collected charges separately on above said heads in maintenance bills and invoices which were issued to its members. Considering the N/N. 12/2017-Central Tax (Rate) dated 28.06.2017, and clarification circular issued by TRU, it is held that, if the applicant has collected the charges from its members on the above said supplies up to ₹ 7500/-per member per month basis, then the said supplies would not attract the GST and if the charges collected exceed the ₹ 7,500/- per month, in that case, the GST would be applicable on the total amount recovered (by whatever name called) from its members on their supply of services. Thus, GST is applicable on Repair and Maintenance Fund and Sinking Fund - if the gross amounts collected by the applicant in their bills/invoices, exceed ₹ 7500/- then exemption limit of 7500/-is not applicable on two components of maintenance bills.
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