The Maharashtra Authority of Advance Ruling (AAR) ruled that Input Tax Credit (ITC) cannot be availed by Housing Society where contractor has provided works contract service for repairs, renovations & rehabilitation works.
The Applicant, M/s Mahavir Nagar Shiv Srushti Co-operative Housing Society Limited, is a co operative housing society registered under the Maharashtra State Co-operative Societies Act, 1960 and has constructed a building on the plot allotted by MHADA. The Applicant Society is by its members who are the shareholders of the society, with the object of managing, VANCELING AUTHO maintaining and administering the property of the society.
For the purpose of achieving the above objects of the society, the Applicant raises funds by collecting contributions/charges from members of the society. The charges include: property taxes water charges, common electricity charges, contribution to repairs and maintenance funds, expenses on repairs and maintenance of the lifts of the society, including charges to running the lifts, contribution to sinking fund, service charges, car parking charges, interest on the defaulted charges, repayment of the installment of the loan and interest, non-occupancy charges, insurance charges, lease rent, non-agricultural tax, or any other charges. The said charges are collected by issuing invoices.
The applicant has sought the advance ruling on the issue If the activities of the applicant are treated as “supply” under CGST Act, 2017 then whether the applicant is eligible to claim the ITC on input and inputs services for repairs, renovations & rehabilitation works carried out by the Applicant.
The coram of Rajiv Magoo and T.R.Ramnani ruled that The housing society i.e. the applicant in the subject case, is making provisions of the facilities/benefits to its members and is not providing any works contract services to its members and therefore the applicant is debarred from taking Input Tax Credit under the provisions of Section 17 (5) (c) of the CGST Act, 2017.
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