The Maharashtra Authority of Advance Ruling (AAR) held that no GST Exemption to Mahindra Splendour CHS if monthly contribution exceeds Rs. 7,500 per month.
The applicant, M/s Mahindra Splendour Co-operative Housing Society Ltd, the Applicant is a housing society whose main objects include: managing, maintaining and administering its property; raising funds for achieving the said objects etc.. by way of collecting contributions/charges from members of the society, like Property taxes, Maintenance charges, Water and electricity charges. Sinking and Building repair Fund, Club House charges, Interest on delayed payment, etc.
The applicant has sought the advance ruling on the issues whether the applicant is liable to pay GST on the contribution received from its members, If yes, whether the applicant can avail the benefit of exemption under entry no. 77 of Notification no.12/2017-CTR dated 28th June, 2017 for the value upto Rs.7,500/- per month per member and in case the said monthly contribution exceeds Rs. 7,500/- per month, then the GST leviable only on differential value in excess of Rs. 7,500/-.
The coarm of Rajiv Magoo and T.R.Ramnani held that the applicant is liable to pay GST on the contribution received from its members. In case the monthly contribution exceeds Rs. 7,500/- per month, then the GST is leviable on the entire value of the monthly contribution collected. The charges, collected by the society on account of property tax, electricity charges and other statutory levies would only be excluded while calculating the threshold limit of Rs. 7,500/-.
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