9911796707
TMI Blog2024 (8) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... by if a RWA collects up to an amount of Rs. 7500/- per month from a member by way of reimbursement of charges or share of contribution, the RWA shall not be liable to pay tax on such amount irrespective of the fact that there may be other members (even from the same person if he owns another flat in the same housing society or residential complex) in respect of whom such quantum exceeds Rs. 7500/- per month. To illustrate, if a RWA who is registered under the GST Act, collects Rs. 7000/- per month as maintenance charges from one of its member and Rs.9000/- from another member in the same residential complex, the RWA shall not be liable to pay tax on Rs. 7000/-. The applicant shall not be liable to pay tax on the amount which is collected fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression GST Act would mean the CGST Act and the WBGST Act both. 1.2 The applicant is stated to be a Residential Welfare Association (RWA) or an Association of Persons (AOP, for short) who is engaged in the business of providing services to its own members by way of reimbursement of charges or share of contribution for sourcing of goods or services procured from a third person. 1.3 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under seeking an advance ruling in respect of following questions: (i) Whether Serial No 77 of the Notification No 12/2017 shall be applicable on such membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n decided by nor are pending before any authority under any provision of the GST Act. 1.6 The application is, therefore, admitted. 2. Submission of the Applicant 2.1 The applicant is stated to be a Resident Welfare Association (RWA) duly registered under the West Bengal Apartment Ownership Act, 1972 vide Regn No. 003032022 of 2022 and provides services to its own members by way of reimbursement of charges or share of contribution (maintenance) for sourcing of goods and services procured from a third person for the common use of the members in the residential complex. 2.2 The applicant states that there are 33 apartments in the residential complex and each flat owner is a member of the RWA. The applicant collects monthly maintenance charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other members of the same residential complex are contributing more than Rs. 7,500 per month. 3. Submission of the Revenue The concerned officer from the revenue has not expressed any view on the issue raised by the applicant. 4. Observations Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorized representative of the applicant during personal hearing. 4.2 We find that the applicant has raised four questions in the application made in FORM GST ARA-01. However, all the four questions, being repetitive in nature, may be summarized into a single issue which is to determine the taxability of supply of services by a RWA to its members whose monthly subscription doesn t exceed Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Rate), dated 25.01.2018] Where a person owns two or more flats in the housing society or residential complex, whether the ceiling of Rs. 7500/- per month per member on the maintenance for the exemption to be available shall be applied per residential apartment or per person? As per general business sense, a person who owns two or more residential apartments in a housing society or a residential complex shall normally be a member of the RWA for each residential apartment owned by him separately. The ceiling of Rs. 7500/- per month per member shall be applied separately for each residential apartment owned by him. For example, if a person owns two residential apartments in a residential complex and pays Rs. 15000/- per month as maintenan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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