The applicant, M/s. The Capital Commercial Co-op. (Service) Society Limited is a registered Commercial Co-Operative service society providing services of maintenance of common facilities or amenities to their members. The applicant has collected money from their members under Monthly maintenance fees (Recurring basis) and Common Maintenance Fund/Deposit (one-time basis).
The applicant has sought for advance ruling in respect of the question whether the applicant is liable to pay GST on the common maintenance fund/deposit collected from their members and if yes, then, what shall be considered as the time of supply for such transaction.
The Coram consisting of Sanjay Saxena and Mohit Aggarwal observed that the common maintenance fund/deposit so collected is the amount collected towards the future supply of service of maintenance, repair etc. and accordingly, gets applied as consideration towards supply of services only at the time of actual supply of services.
Therefore, the AAR held that the amount collected towards the common maintenance fund/deposit do not form part of consideration towards supply of services at the time of collection, however, the amounts so utilized for provision of service are liable to GST at the time of actual supply of service.Subscribe Taxscan AdFree to view the Judgment