The supply of water to individual units is not different from the supply of water for maintenance services. Therefore, the applicant is required to pay GST as applicable on maintenance agreement.
Authority for Advance Ruling — Supply of Maintenance services – The applicant is a facility management entity engaged in the business of management and maintenance of various residential projects.. The Applicant would enter into a MOU with each buyer for supply of water to the individual unit, till HSVP creates its infrastructure for supply of such water. The applicant submitted that the cost of water used in common area is a part of maintenance charges received by the applicant. The applicant sought an advance ruling as to whether the supply of water to individual units in the project under the MOU is a separate supply of goods or is composite/mixed supply with that of maintenance services; if such supply is a separate supply of goods, what is the appropriate rate of GST chargeable thereon.
Held that:- The Hon’ble Authority ruled that Maintenance agreement and MOU is directly linked with each other as there is no case of direct supply of water by the applicant to the individual resident of the society. The supply of water to individual units is not different from the supply of water for maintenance services. Therefore, the applicant is required to pay GST as applicable on maintenance agreement.
The supply of water to individual units is not different from the supply of water for maintenance services. Therefore, the applicant is required to pay GST as applicable on maintenance agreement.
Authority for Advance Ruling — Supply of Maintenance services – The applicant is a facility management entity engaged in the business of management and maintenance of various residential projects.. The Applicant would enter into a MOU with each buyer for supply of water to the individual unit, till HSVP creates its infrastructure for supply of such water. The applicant submitted that the cost of water used in common area is a part of maintenance charges received by the applicant. The applicant sought an advance ruling as to whether the supply of water to individual units in the project under the MOU is a separate supply of goods or is composite/mixed supply with that of maintenance services; if such supply is a separate supply of goods, what is the appropriate rate of GST chargeable thereon.
Held that:- The Hon’ble Authority ruled that Maintenance agreement and MOU is directly linked with each other as there is no case of direct supply of water by the applicant to the individual resident of the society. The supply of water to individual units is not different from the supply of water for maintenance services. Therefore, the applicant is required to pay GST as applicable on maintenance agreement.