The Two-Member Bench of the Haryana Authority for Advance Ruling (AAR) observed that the Residents Society collecting Common Area Maintenance (CAM) charges for services provided to its resident members attracts GST.
The applicant has advance ruling on the matter of whether the society collecting the CAM charges in lieu of services provided to its resident members attract any levy under the GST Act?
The Valley Residents Welfare Society, the applicant is a registered society under the Societies Registration Act, 1860. The applicant is collecting CAM (Common Area Maintenance) charges on monthly basis in lieu of services rendered to its members. The minimum & maximum monthly CAM charges for residents are Rs.1415/-& Rs. 4294/- respectively per member for floor.
The circular issued /notified by CBIC dated 22/7/2019 has a specific bearing for exemption from levy of GST on the Common Area Maintenance (CAM) charges collected by the society in lieu of services given to its resident members.
Since the RWA is collecting maximum Rs. 4294/- from individual resident members per floor per month, therefore, there is specific exemption from the payment of GST. It is also made clear that the RWA has not been collecting any GST on the CAM charges received from its resident members.
The clarification sought under advance ruling on CAM charges charged by the applicant on account of services provided by it to the residents of the DLF valley. In reference to the above queries the CBC vide Circular No. 109/28/2019-GST dated 29.7 2019 has made clarification regarding tax paid/exemption on CAM charges collected by welfare societies from the flat holders.
The Bench comprising Sunder Lal, Member CGST and Kumud Singh, Member SGST observed that “Residents Society collecting CAM charges for services provided to its resident members attracts GST.”
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