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TMI Blog2019 (7) TMI 1160X X X X Extracts X X X X X X X X Extracts X X X X ..... 600 007 (hereinafter referred to as 'Applicant') is a residential welfare association registered under the Societies Act. They are registered under GST vide GSTIN No. 33AÆAAL7352D1ZZ. The Applicant has preferred an application seeking Advance Ruling on the following Question: If the monthly maintenance charges payable by a Member of the association exceeds Rs. 7,500 per month, in the context of exemption as per S.No. 77 of Notification 12/2017 - Central tax (Rate) dated 28.06.2017 as amended by Notification 2/2018 - Central Tax (Rate) dated 25.01.2018, the applicant is liable to pay GST only on the amount in excess of Rs. 7,500 or on the entire amount? The Applicant has submitted the copy of application in Form GST ARA - 01 and submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/each under Sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2. The applicant in the statement of facts has stated that they are a residential welfare association registered under the societies Act, Goods and services tax Act and also assessed to Income tax, which has been duly filing the returns with the Registrar of Societies, GST and Income Tax Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the view that, the exemption is up to Rs. 7,500 per month and it does not lay down that this exemption would be lost, if the amount exceeds Rs. 7,500 per month, the exemption would have been worded differently whereby the exemption is made conditional subject to the monthly charges being less than Rs. 7,500. The applicant has also submitted the E-flier issued by CBIC on Co-operative Housing Societies to support the above view. They have also made a reference to the FAQ's released by TRU vide F.No.332/04/2017-TRU on levy of GST on supply of services to the Co-operative Society. 3. The applicant was given an opportunity to be personally heard on 22.05.2019. The authorized representative of the applicant Ms.S. Sridevi, Advocate appeared before the authority for ruling and stated that as per Notification 12/2017 Sl.No.77, as amended, an exemption upto Rs. 7,500/- (previously Rs. 5,000/-) is given for the services from a third party for common use of member in a housing society. The applicant is a registered society and procure various services such as maintenance, security etc., from third party. They stated that GST should be chargeable only on excess of Rs. 7,500/- per month per m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus attract the levy of GST and the housing society would be required to register and comply with the GST Law. * As per clause (c) of the above exemption, the exemption limit of Rs. 5000/has been amended to Rs. 7500/- as per notification no 2/2018 - Central Tax (Rate) Dated :25.01.2018. * As per the amended notification, monthly maintenance amounts up to Rs. 7,500/- is exempted. So, if the monthly maintenance amount exceeds Rs. 7,500/- say Rs. 8,500/- the amount up to Rs. 7,500/- is exempted and the balances amount of Rs. 1,000/- is liable to GST. if it is the intention of Government to Tax entire amount above Rs. 7500 it would have been ordered differently, In the frequency asked question on GST on Co-Operative Housing Societies, it has been clarified, as below: - Further, the question would then arise that if the monthly bill is say Rs. 6,000/- (and the same is on account of services for common use of its members), will GST be applicable on ks.6,000/- or Rs. 1000, In such cases, exemption is available up to an amount of Rs. 5,000/- and GST would be applicable on the amount in excess of Rs. 5000/- .( TRU vide F.No.332/04/2017, has released FAQs on levy of GST on supply of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o to do, on the recommendations of the Council, hereby exempts the intra- State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:-" Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (Percent) Condition 77 Heading 9995 Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution - (a).......................; (b).......................; or (c) up to an amount of Seven Thousand Five Hundred rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex. Nil Nil 7.2 In the case at hand from the submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion goes above 7500 rupees per month per member, such service will not fit the above description and hence, such service is not exempt. Such services are then fully chargeable to GST at the applicable tax rate. There is no option to the taxpayer to pick and choose from the description of the services mentioned in column (3) to make any service partly applicable to the notification and partly chargeable. Any service either falls within the scope of the description in column (3) or it does not. If a service by the applicant to its members by way of reimbursement of charges or share of contribution ,for sourcing of goods or services from a third person for the common use of its members, is such that it is above 7500 rupees per month, it squarely falls outside the description of Sl No 77 (c) of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 as amended for CGST and of Sl.No. 77 (c) of Notification No. II(2)/CTR/532(d-15)/2017 vide G.O. (Ms) No. 73 dated 29.06.2017 as amended for SGST. GST at appropriate rates are to be charged on the full amount of reimbursement of charges or share of contribution. 8. In view of the above discussions, we rule as under: RULING If a service by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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