The Maharashtra Appellate Authority of Advance Ruling (AAAR) while upholding the ruling of the AAR ruled that GST payable on property tax, water charges, common electricity charges, etc. collected by Society as amounts to ‘Supply’.
The Appellant, M/s Apsara Co-Operative Housing Society is a Co-operative Housing Society, registered under the Maharashtra State Co-operative Society Act 1960.
The main objects of the Appellant as per the Bye-laws are enumerated as under to obtain the conveyance from the promoter, in accordance with the provision of the Ownership Flats Act and the Rules made thereunder of the right, title and interest; in the Land with buildings; to manage, maintain and administer the property of the Society; (c) To raise funds for achieving the objective of the Society; to undertake and provide for, on its own account or jointly with Co-operative etc.
For the purpose of obtaining the above objectives of the Society, the Appellant raises funds by collecting contributions from the members of the Society, which are also called “charges in terms of the Bye-laws.
The Society charges include property taxes, water charges, common electricity charges, contribution to repair and maintenance fund, contribution to the sinking fund, services charges, car parking charges, interest on the default charges, non-occupancy, insurance charges, etc.
The issues raised by the applicant was whether the said activities carried out by the Appellant would amount to supply.
The two member bench of Sanjeev Kumar and Rakesh Kumar Sharma ruled that activities carried out by the Appellant would amount to supply in terms of Section 7(1)(a) of the CGST Act, 2017 and the same would be liable for GST subject to the condition that the monthly subscription or contribution charged by the society from its members is more than Rs.7500 per month per member and the annual aggregate turnover of the society by way of supplying of services and goods is also Rs.20 lakhs or more.
Subscribe Taxscan Premium to view the Judgment
