Levy of GST — The applicant is a Housing Society registered under the Karnataka Co-Operative Societies Act., engaged in the development and sale of Sites for its members.
applicant seeks advance Ruling on the following;
1. Is the activity of maintaining the facilities at the layout from the funds collected from the members of the Society a service attracting GST Maintenance involves upkeep and maintenance of amenities and due to the length of the period roads, drainages and other UGD facilities need to be re- done/ re-constructed.
2. If answer to question no.(1) above is yes then, does the Society’s collection of sum towards maintenance charges calculated on yearly basis in one lump-sum for certain length of time say 10 years, should the GST be paid even for the amount pertaining to the un-expired period?
3. The Society is collecting Water charges from the residents for recovery of charges for water. The entire cost of the water is recovered from the members on monthly basis, does it attract GST?
4. Does the society have to pay GST for collecting lump-sum amount as endowment fund, the proceeds of which would be utilized for maintenance charges in terms of the maintenance as indicated in Appendix A above, of the layout with an express condition that the amount would be returned to the Site owners upon the taking over of the layout by the local body as the Society would be utilizing only accretions to the endowment fund from year to year.
5. In the event that any or all of the items from (1) to (4) is rendered taxable whether the same is exempt under Notification No.12/2017 entry no 77 respect of the value of the maintenance amount collected from the members of the society to the extent of Rs.7,500/- (Rupees Seven thousand five hundred) per month?
1. Yes. The activity of maintaining the facilities at the layout from the funds collected from the members of the Society is a service attracting GST.
2. The contributions collected by the applicant from the member of the housing society either annually or once in ten years, if such amount when utilized for sourcing of goods or service from the third person for the common use of its member, the amount utilised in that particular tax period, from both individual contributions and from the endowment fund, must be divided by recipients of such service in the society and if the said amount per member does not exceed Rupees Seven thousand five hundred in that tax period, such amount is exempted from tax.
3. The water charges collected separately on monthly basis is exempt from the levy of GST as per entry 99 of the Notification No.2/2017-Central Tax (Rate) dated 28th June, 2017.
4. The amount collected from the member who is selling the site and ceases to be a member, as endowment fund is liable to tax under GST.
5. Exemption is applicable to the amount collected from the member who is selling the site and ceases to be a member, as endowment fund is liable to tax under GST. — Gnanaganga Gruha Nirmana Sahakara Sangha Niyamitha, In Re…  28 TAXLOK.COM 036 (AAR-Karnataka)