This roundup analytically summarizes the stories related to the Goods and Services Tax Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) that were published at Taxscan.in. during the period from March 09, 2024 to March 15, 2024.
The West Bengal Authority for Advance Ruling (AAR) has determined that common area electricity charges collected by Residential Welfare Associations (RWAs) from their members constitute a component of a composite supply and are subject to Goods and Services Tax (GST) if the service rendered does not meet the criteria for exemption.
In their conclusion, the two-member authority, comprised of Dr. Tanisha Dutta (CGST Member) and Joyjit Banik (SGST Member), clarified that such charges are deemed part of a composite supply and are subject to GST unless exempted under relevant GST regulations.
The West Bengal Authority for Advance Ruling (AAR) has issued a significant clarification regarding the taxation of maintenance charges imposed by Residential Welfare Associations (RWAs) on their members. According to the ruling, maintenance charges exceeding Rs. 7,500 per month per member are fully subject to taxation under the Goods and Services Tax (GST) regime, with a rate of 18%.
In their decision, the two-member authority, consisting of Dr. Tanisha Dutta (CGST Member) and Joyjit Banik (SGST Member), emphasized that if the maintenance charges levied by RWAs surpass Rs. 7,500 per month per member, the entire amount becomes liable to GST at the rate of 18%. Additionally, they clarified that the benefits outlined in Notification No. 12/2017 dated 28.06.2017 (Sl. No. 77), in conjunction with Notification No. 02/2018 dated 25.01.2018, which provide exemptions from tax, are not applicable when maintenance charges exceed Rs. 7,500 per month per member. In such cases, the entirety of the charges becomes taxable under GST regulations.
The West Bengal Authority for Advance Ruling ( AAR ) has held that the contributions made by members to the sinking fund of Residential Welfare Associations ( RWAs ) shall be deemed as advance payments for future services and are liable to 18% Goods and Services Tax ( GST ).
In result, the two-member authority comprising Dr. Tanisha Dutta ( CGST Member ) and Joyjit Banik ( SGST Member ) has held that contributions to the sinking fund of RWAs by its members are considered advance payments for future services provided by the RWA. This means that members’ contributions towards the sinking fund are subject to GST at the rate of 18%. The ruling highlighted that even though these contributions are made for future contingencies, they are treated as consideration for the future supply of services by the RWA.
The Karnataka Authority For Advance Rulings (AAR) has determined that e-commerce operators are obligated to collect Tax Collected at Source (TCS) when facilitating the sale of digital gold on their platforms. The authority clarified that the applicant, functioning as an electronic commerce operator, does not serve as an agent of the third-party supplier M/S DGIPL. Therefore, the applicant falls under the purview of Notification No. 52/2018 — Central Tax, in conjunction with Section 52 of the CGST Act, 2017.
Dr. M.P. Ravi Prasad, Additional Commissioner of Commercial Taxes Member (State), and Sri. Kiran Reddy, Additional Commissioner of Customs & Indirect Taxes, Member (Central), who constitute the Authority, affirmed that the applicant qualifies as an electronic commerce operator. Additionally, they emphasized that as per Section 52 of the CGST Act 2017, the applicant is obligated to collect tax at source. Consequently, the applicant is required to register compulsorily under Section 24(x) of the CGST Act 2017, in accordance with the provisions of Rule 12 of the CGST Rules 2017.
The Karnataka Goods and Services Tax (GST) Authority for Advance Ruling (AAR) has clarified that e-commerce operators are mandated to collect Tax Collected at Source (TCS) for facilitating the sale of digital gold on their platforms.
The AAR bench, comprising Dr. M.P. Ravi Prasad and Kiran Reddy T., observed that the applicant operates an e-commerce platform through their app, earning consideration in the form of a percentage on the sale value of gold. As a result, they are liable to charge and collect GST. The AAR further emphasized that the electronic commerce operator does not serve as an agent of DGIPL or any third-party supplier. Consequently, they concluded that e-commerce operators are required to collect Tax Collected at Source (TCS) for facilitating the sale of digital gold on their platforms.
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