9911796707
TMI Blog2019 (7) TMI 1160X X X X Extracts X X X X X X X X Extracts X X X X ..... eable to GST at the applicable tax rate. 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. - Order No. TN/25/AAR/2019 - - - Dated:- 21-6-2019 - MS. MANASA GANGOTRI KATA AND THIRU KURINJI SELVAAN V.S., MEMBER Note Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of those members whose contribution toward maintenance charges does not exceed 7,500/per month. They have stated that there are two possible interpretations regarding the correct method of claiming the exemption as per S.No. 77 of Notfn. 12/2017-C.T. (Rate) dt. 28.06.2017 as amended by Notfn. No. 2/2018-C.T.(Rate) dt. 25.01.2018 on which advance ruling is sought. There are two possible interpretations as to the adoption of the exemption notification., Whether a resident must pay GST on the value over and above ₹ 7,500/- or on the entire amount? For example, where maintenance charges are ₹ 8000/- for an individual resident, does GST liability arise on the value over and above ₹ 7,500 (on ₹ 500/-); or on the entire amount of ₹ 8,000/-? 2.2 The applicant on their interpretation of law has stated that Notification 12/2017 Central Taxes(Rates) dated 28.06.2017, provides for various exemptions from payment of GST and the exemption mentioned under Sl.No.77 of the cited notification is on the exemption extended to the extent of ₹ 7500/- per month, collected from the members for sourcing of goods or services from a third person for the common ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir services of elevators , maintenance of swimming pool , facility management services , de-mosquitoes solutions , from third party invoiced to the applicant, the registration certificate of the applicant under Tamilnadu Societies Registration Act, 1975. 4. The applicant is under the administrative jurisdiction of Chennai North Commissionerate. The Jurisdictional Commissioner, Chennai North vide letter dated 28.03.2019 has stated that Notification 12/2017 -CT (Rate) dt. 28.06.2017 as amended by Notification No.2/2018- CT (rate) dt 25.01.2018 provides for the exemption of intra-state supply of services as described in column Sl.No.77 of the said notification which provides for exemption of the Service by unincorporated body or a non-profit entity... to its own members by way of reimbursement of charges or share of contribution- (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 . However, if the housing society charges in excess of ₹ 7500 per month per person, the said activities will not be covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave also examined the comments offered by both the State and the Central Authorities. We find the question raised and to be decided is as follows: If the monthly maintenance charges payable by a Member of the association exceeds ₹ 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 ₹ 7,500 or on the entire amount? 7. The applicant is a Society registered under Tamil Nadu Societies Registration Act 1975; they are also registered under GST Act. They are a resident welfare association with members being the residents of certain apartment blocks. They receive various services from third party such as management services, maintenance of elevators, swimming pool, security etc., to the owners of the flats. Currently, they are collecting maintenance charges on a quarterly basis at ₹ 3.50 Per Square feet per month along with applicable GST, if any from each member. They are claiming exemption of ₹ 7,500/- as per S.No. 77 of Notification 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evident from the sample copies of invoices, that the applicant procures various services such as Facility Management Services, De-Mosquitoes Solutions, Maintenance of Swimming Pool, Servicing and Maintenance of lifts. The complex is stated to consist of 9 Residential blocks and 448 flats, and the applicant collects maintenance charges from the members towards maintenance. The applicant claims that if the individual contributions for availing such services/ goods by the society from third parties exceeds ₹ 7500/- per month (effective from 25.01.2018 and ₹ 5000/- upto 24.01.2018), then GST is liable to be paid only on the charges over and above ₹ 7500/- at the appropriate rate of tax. The State jurisdiction officer has stated that this is the explanation given by TRU in F.No.332/04/2017 dated 05.09.2017. However, there is no such clarification in the above letter. Further, this is an incorrect way of reading the notification. 7.3 The start of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 as amended states that the Central government exempts the intra- State supply of services of description as specified in column (3) of the Table from so muc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
