Question14: QUERY-1
' A cooperative Society is Collecting Rs.10000/- from each member as a
contribution for major repair to the premises of the Society Building( flats of
the members of the society).
' Approximate contribution is about Rs. 12,00,000/-.
' 90% of the society members are within maintenance limit of Rs. 5000/- per
month, whereas 10% members are beyond Rs. 5000/- per month society maintenance.
' Society gave a WCT with material & Labour to the contractor for major repair
of the society.
' Cost of Major repair work is approx. Rs. 12 Lakh.
' Now there is a question-
' Whether society will collect GST from all members on this major repair
contribution. Whether Contractor will collect GST from the society on the work
done as WCT Contract. Or major maintenance is exempted being one unit of each
member of the society.
QUERY -2
Sir, I want your valuable views on applicability of GST (rate, SAC & credit of
input tax) on electricity charges (State board supply, main meter is in name of
builder & through DG Set also), billed by builder (not handed to RWA) from
residents of a group housing society at fixed price of Rs.6 per unit (agreed
rate after considering common area consumption) on unit consumed at flat meter.
Answer: (A) As per provisions of Section 7(1)(a) of CGST Act, 2017 all
forms of supply of goods or services or both such as sale, transfer, barter,
exchange, licence, rental, lease, or disposal made or agreed to be made for
consideration by a person in the course of furtherance of business will be
termed as supply under GST regime and would be taxable. Further, as per
provisions of Section 22 of the CGST Act, 2017 every supplier having aggregate
Turn Over exceeding Rs. 20 lakh in a financial year is required to be registered
under GST The said limit is Rs. 10 lakh in special category States. Accordingly,
a Group Housing Society having aggregate turn over exceeding Rs. 20 lakh in a
financial year is required to be registered under GST and pay applicable taxes.
(B) Your question is divided into two parts, hence, answer is being given in the
following manner;
(i) All supplies are to be taken into consideration for the purpose of computing
threshold exemption limit and also the value of supply per member per month..
This will include repairing, distribution of electricity, sourcing of services
for the members etc.
(ii) The exemption is per member per month, therefore, following points need to
be taken into consideration;
(a) If in any month, the supply increases more than Rs. 5,000/-for a member, the
full amount will be liable to be taxed. For example, if the amount becomes Rs.
7,000/- the entire Rs. 7,000/- will be taxed and not Rs. 2,000/- after reducing
exempted amount.
(b) The aggregate supply in whole year is Rs. 60,000/- for a member if it is
more it will be taxed.
In our opinion the turn over should be calculated on the basis of per member per
month as well as Rs. 60,000/- for whole year per member.Suppose a member joins
during middle of the year, then his contribution would be taken into
consideration on pro-rata basis for computing tax liability.
NOTE - View rendered by other experts may differ, therefore, if any different
view is offered by any other expert, you are requested to share the same with us
as we would like to discuss the same. (Reply dt. 11/12/2017)