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Contribution by the outgoing member is nothing but Advance amounts paid to the society for services carried out or to be carried out for the members of the Society and is therefore taxable as per the GST Laws.

Levy of GST— The present application has been filed by the appellant against the ruling of the AAR, Maharashtra seeking an advance ruling in respect of the following questions.

1. Whether the charges received by the applicant towards upkeep and maintenance from its members are covered under Sec 7 of the CGST Act?

2. Whether the receipt of a gratuitous payment from an outgoing member for the time he has resided in the society be taxable under the CGST Act, 2017 as there is no corresponding service being provided separately by the tax payer society?

3. Whether major repairs to be made in the future for the co-operative housing society, for which amounts are collected, be taxable at all as it is for the members only? And if taxable, whether the same is taxable at the time of its collection or whether the same would be taxable on utilization of such funds?

Question No. 1 raised in the application was withdrawn by the applicant during the course of the Preliminary Hearing and Question No. 3 raised in the application was withdrawn by the applicant during the course of the Final Hearing and therefore, both the questions are not taken up for discussion.

Activities rendered by the applicant Society to its members are supply of services in view of the amended Section 7 of the CGST Act, 2017 and contributions/charges collected by the Applicant Society from its members are chargeable to tax under the GST Laws. This has been accepted by the applicant and accordingly it has withdrawn Question Nos. 1 and 3 of the application.

Though the collection of charges of society might be illegal under some other law, but since it is covered by the scope of supply and other ingredients of GST levy, it is taxable.

AAR, Maharashtra held that the receipt of a gratuitous payment from an outgoing member for the time he has resided in the society will be taxable under the CGST Act, 2017 as there is no corresponding service being provided separately by the tax payer society.

Appellate Authority for Advance Ruling, Maharashtra confirmed and upheld the Advance Ruling bearing No. GST-ARA-30/2020-21/B-71 dated 31.05.2022 48 TAXLOK.COM 111 pronounced by the MAAR. Therefore, the Appeal filed by the Appellant is, hereby, dismissed.

Contribution by the outgoing member is nothing but Advance amounts paid to the society for services carried out or to be carried out for the members of the Society and is therefore taxable as per the GST Laws.

Levy of GST— The present application has been filed by the appellant against the ruling of the AAR, Maharashtra seeking an advance ruling in respect of the following questions.

1. Whether the charges received by the applicant towards upkeep and maintenance from its members are covered under Sec 7 of the CGST Act?

Though the collection of charges of society might be illegal under some other law, but since it is covered by the scope of supply and other ingredients of GST levy, it is taxable.