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TMI Blog2023 (10) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... t be combined with others supplies being made by the applicant as a composite supply because a composite supply by definition should consist of two or more taxable supplies. Collection of advance maintenance charges from members - HELD THAT:- The Section 13 (2) of the CGST Act enumerates that the time of supply of services shall be the earliest of the date of issue of invoice or the date of receipt of payment. Section 31 (2) states that a registered person supplying taxable services shall issue a invoice either before or after the provision of service. A combined reading of both would make it clear that as an invoice can be issued even prior to provision of a service a time of supply of service will be the date of receipt of advance. Further, vide notification no. 66/2017 Central Tax dated 15th November, 2017, specific exemption from the payment of GST on advance receipt has been granted to the supplier of goods - advances received towards the supply of a service have to be reported in the GSTR-1/GSTR-3B for the relevant tax period and the liability needs to be discharged in GSTR-3B. Threshold limit for collection of GST in case of collections from member of Resident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g. The Applicant has declared that the questions raised in the application have neither been decided nor are pending before any authority under any provisions of the CGST/TGST Act 2017. The application is, therefore, admitted after examining it and the records called for and after hearing the applicant as per section 98(2) of TGST Act 2017. 4. BRIEF FACTS OF THE CASE: 4.1 The applicant NCC URBAN ONE APARTMENT OWNERS MUTUALLY AIDED CO-OP SOCIETY LIMITED (NCCLIOMACS) is a non-profit entity, registered under Telangana Mutually Aided Co-Op Society Act, and consists of only residential flats/members with GSTIN-36AAGAN5854N1ZX a) The applicant submitted that NCCUOMACS currently collects monthly maintenance charges from its members to meet the society's maintenance costs. b) That the monthly collection charges also include common area electricity charges. The actual common area electricity bill is divided by total carpet area and pro rata charges are collected from each of the members as per their flat area. c) That in addition to the monthly maintenance charges NCCUOMACS presently has some rental incomes from commercial establishments in the society. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification 12/17-CT dated 28.06.2017, exemption was granted for a contribution made up to INR 5,000 per month per member. A limit of INR 5,000 was amended up to INR 7,500 vide Notification No. 2/18 dated 25.01.2018, the association would be liable to collect GST in cases where in the contribution from members exceeds Rs 7500/- per month. Should the RWA collect GST on the total contribution in cases where the monthly contribution exceeds Rs. 7500/-or should GST be charged only on the contribution in excess of RS 7500/- per month, in line with the recent judicial pronouncements? 6. PERSONAL HEARING: 1. The authorized representative Ravi Shanker Chittiboyina, CA appeared before the AAR on 24.05.2023 and reiterated their averments in the application submitted and averred as follows: 2. That, they are NCC Urban One Apartments Owners Macs Limited. And as such they are collecting Electricity charges incurred for common facilities on actual bill basis and paying the same to TSSPDCL. 3. That, they are pure agents and that value of supply of services under Rule 33 of CGST Rules, 2017 shall not include the consideration received and passed on to TSSPDCL. 4. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that illustrations in a statute are part of the statute and help to elucidate the principle of the Section ( Dr. Mahesh Chandra Sharma Vs Smt. Raj Kumari Sharma AIR 1996 SC 869 ). The applicant being a mutually aided cooperative society and also by his submissions in the application filed before the AAR, will be a pure agent in the light of the above illustration to rule 33 of the CGST rules. A combined reading of the above notification and the rule reveals that the cost of electrical energy supplied by the applicant to its members as a pure agent is not taxable at the hands of the applicant. So also by the notification cited above the electrical energy as such remains exempt from taxation and cannot be combined with others supplies being made by the applicant as a composite supply because a composite supply by definition should consist of two or more taxable supplies. ii) Discussion for question no. 2: The Section 13 (2) of the CGST Act enumerates that the time of supply of services shall be the earliest of the date of issue of invoice or the date of receipt of payment. Section 31 (2) states that a registered person supplying taxable services shall issue a invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Questions Ruling 1. In the present case the common area electricity charges are collected from the members on actual basis. The rate of contribution from each of the members in decided on the basis of the actual flat area of each of the members. There is no additional loading of any nature on the actual charges, Since Electricity is an exempted supply, are common area electricity charges exempt from GST? As mention at para 7(i) 2. NCCUOMACS, at times collects advance maintenance charges from its members. The advance is collected only with the intention of minimizing the manual effort of collecting contributions every month. Is the GST amount collected in advance to be deposited with the government at the time of collection or is the amount to be deposited in the respective months? As mention at para 7(ii) 3. Few of the existing towers have a system of Hi tension Residential electricity supply wherein there is only a single meter from the electricity department for the whole tower. The individual consumption of each of the flats is meas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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