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TMI Blog2021 (8) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... sactions 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. - GST-ARA-65/2019-20/B-42 - - - Dated:- 4-8-2021 - SHRI RAJIV MAGOO, AND SHRI T.R. RAMNANI, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ₹ 7500/- per month per member. B. Statement containing the Applicant s interpretation of law and/or facts. Our interpretation of law with reference to Circular No. 109/28/2019- GST New Delhi, the 22nd July, 2019 Compliance requirements for housing societies under GST: If the turnover of housing society is above 20 lakhs , it needs to take registration under GST in terms of Section 22 of the CGST Act, 2017. However, taking registration does not mean that the housing society has to compulsorily charge GST in the monthly maintenance bills raised on its members. Notification No. 12/2017 -Central Tax (Rate) dated 28.06.2017 at sr.no.77 provides for the following exemption to housing societies: In view of the provision contained, a society may be registered under GST, however if the monthly contribution received from members is less than ₹ 7500/- (and the amount is for the purpose of sourcing of goods and services from a third person for the common use of its members), no GST is to be charged by the housing society on the monthly bill raised by the society. However, GST would be applicable if the monthly contribution exceeds ₹ 7,500/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he charges or share of contribution did not exceed ₹ 5000/-per month per member. The limit was increased to ₹ 7500/-per month per member with effect from 25th January 2018: (Refer clause (c) of SI. No. 77 to the notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended vide notification No. 2/2018- Central Tax (Rate), dated 25.01.2018) 2. ARWA has aggregate turnover of ₹ 20 lakh or less in a financial year. Is it required to take registration and pay GST on maintenance charges if the amount of such charges is more than ₹ 7500/- per month per member? No, if aggregate turnover of an RWA does not exceed ₹ 20 Lakh in a financial year, it shall not be required to lake registration and pay GST even if the amount of maintenance charges exceeds ₹ 7500/- per month per member. RWA shall be required to pay GST on monthly subscription/ contribution charged from its members, only if such subscription is more than ₹ 7500/- per month per member and the annual aggregate turnover of RWA per by way of supplying of services and goods is also ₹ 20 lakhs or more. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017-Central Tax (Rate) dated 28.06.2017, which, at Sr. No.77 provides for the following exemption to housing societies, a society may be registered under GST, however if the monthly contribution received from members is less than ₹ 7500/- (and the amount is for the purpose of sourcing of goods and services from a third person for the common use of its members), no GST is to be charged by the housing society on the monthly hill raised by the society. However, GST would be applicable if the monthly contribution exceeds ₹ 7,500/-. 5.4 As per the submission of the Applicant, their Gross Turnover is more than 20 lakhs and the Maintenance Charges per month per member is within ₹ 7,500/- and hence it is not required to collect any GST from its members. 5.5 We find from the written submissions made that, the applicant has not challenged any provision of the notification nor raised any question of laws, in the application filed. The applicant has asked certain queries. The issues are very specific i.e. applicability of GST on Repair and maintenance fund and sinking fund and the query regarding exemption limit of ₹ 7500/- per member. 5.6 As per the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y GST on maintenance charges if the amount of such charges is more than ₹ 7500/- per month per member? No. If aggregate turnover of an RWA does not exceed ₹ 20 Lakh in a financial year, it shall not be required to take registration and pay GST even if the amount of maintenance charges exceeds ₹ 7500/- per month per member. RWA shall be required to pay GST on monthly subscription/ contribution charged from its members, only if such subscription is more than ₹ 7500/- per month per member and the annual aggregate turnover of RWA by way of supplying of services and goods is also ₹ 20 lakhs or more. Annual turnover of RWA Monthly maintenance charge Whether exempt? More than ₹ 20 lakhs More than ₹ 7500/- No ₹ 7500/- or less Yes ₹ 20 lakhs or less More than ₹ 7500/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harges 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. This aspect is clarified in the said circular at Sr. No. 5 which is reproduced below: SI.No. Issue Clarification 5 How should the RWA calculate GST payable where the maintenance charges exceed ₹ 7500/- per month per member? Is the GST payable only on the amount exceeding ₹ 7500/- or on the entire amount of maintenance charges. The exemption from GST on maintenance charges charged by a RWA from residents is available only if such charges do not exceed ₹ 7500/- per month per member. In case the charges exceed ₹ 7500/-per month per member, the entire amount is taxable. For example, if the maintenance charges are ₹ 9000/- per month per member, GST @18% shall be payable on the entire amount of ₹ 9000/-and not on [₹ 9000 - ₹ 7500] = ₹ 1500/-. 5.11 The bills produced by the applicant on sample basis, are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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