TMI BlogGST on Housing SocietyX X X X Extracts X X X X X X X X Extracts X X X X ..... XYZ Co-op Society Ltd is a registered commercial Society under the Maharashtra Co-op Societies Act 1960. XYZ has obtained GST registration under Society/Club/Trust category. One of the members sold their office in September 2023 to a family trust namely PQR and XYZ had collected the transfer fees / premium from the incoming member PQR as per the society s rule. Facts: XYZ collects the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer fees / premium along with membership application form. XYZ charge GST thereon and issue the bill to incoming member from the date on which their name is registered with the Society. XYZ raises maintenance bills on second week of each quarter. (Quarterly bills) The background of the present case as under: PQR paid the transfer fees + GST on 28 th September 2023 along with membershi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p application form. PQR was not registered under GST Act on that date. PQR GST registration certificate indicate the effective date of registration is 1st January 2024. Actual transfer took place on 19th December when committee meeting held, and their name was endorsed on the share certificate and issued on them the next day. Maintenance Bill for October to December quarter issued on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 15 th of October on old member's name i.e. XYZ as PQR was not a member at that time. Society filed GST return considering the old member s name. Invoice for Transfer fees was raised on 20th December in the name of PQR and charged the GST without indicating the GST registration number of PQR and filed the return as non-register delayer. The GST amount of transfer fees paid to the Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in December along with the interest. Expert's guidance needed on following points: Can XYZ Issue a fresh Quarterly maintenance bill for October to December period on PQR s name by issuing the credit note to XYZ? Can XYZ indicate now the GSTIN of PQR on the transfer fee bill? Whether GST is applicable on the transfer fee collected? If the above is not possible, any way out by wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich PQR will not be at loss of input tax credit? - Reply By Shilpi Jain - The Reply = Credit note can be issued as time limit still exists and since XYZ is not the service recipient. You could consider having a clause in the membership form of PQR that the maintenance and membership is payable in January every year or so. Hence, the old invoice can be cancelled and issued now. However, if paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent from PQR is received earlier then this may be disputed by department leading to certain interest liability in hands of XYZ. This should not hinder the ITC in hands of PQR - Reply By Kaustubh Karandikar - The Reply = Thanks shilpi ji for your kind advice. Further, since Section 34 specifies the situations under which credit note can be issued such as, tax invoice is found to exceed the ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient. Considering this, since the reason for credit note is not fitting in to the situations as specified above, department might object XYZ for issuing a credit note. your kind views please. - Reply By Shilpi Jain - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = You can take a stand that in the invoice issued earlier the taxable value and tax is higher than liable and hence CN is being issued. - GST on Housing Society - Query Started By: - Kaustubh Karandikar Dated:- 25-2-2024 Last Replied Date:- 2-3-2024 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anagement India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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