QUESTION

Society is providing service to Members and their maintenance charges is Below 7,500/-. Hence, GST will be Not applicable. Society is also providing advertisement service to vendor and charging GST on the same. Question: 1 Input Tax Credit which Society have taken that credit is not reflecting in GSTR 2A/2B for F Y 2017-18 they have all the bill as per Section 31. What is the remedy available. Question 2: Whether they have to reverse the Credit as per Rule 42. Question 3: With New amendment Society is charging some member for using society premises in separate bill if they charge in single bill along with Maintenance bill the amount will be increase 7,500/- Basic exempt limit so they have to charge GST on entire amount. So what is advisable to raise single bill or separate bill.

ANSWER

Facts of the case:
Society is providing services to its members and charging below 7,500 per month per member. It is also providing advertisement service to vendors and charging GST on the same.

Law Applicable:
Entry number 77 of notification 12/2017 (Rate) CGST provides exemption as follows

"(c) up to an amount of seven thousand five hundred rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex."

Interpretation:
The exemption under notification 12/2017 is available to a residential society if the price charged per member per month is less than 7,500.

Conclusion:
So, to answer your questions;

Question 1: Input Tax Credit which Society have taken that credit is not reflacting in GSTR 2A/2B for F Y 2017-18 they have all the bill as per Section 31. What the remiddy is available.

Answer 1: Rule 36(4) was inserted on 9th October 2019 with a prospective effect . Therefore the restrictions laid under the rule are not applicable on FY 2017-18. If all conditions as laid under section 16(2) CGST are satisfied with respect to a certain inward supply then the ITC for the same can be claimed even if the invoice for it is not reflected in GSTR 2A/2B.

Question 2: Whethe they have to reverse the Credit as per Rule 42

Answer 2: Since the society is engaged in supply of exempt service along with taxable service therefore reversal of common ITC must be done under rule 42/43.

Question 3: With New amedment Society is charging some member for using society premises in seprate bill if they charge in single bill along with Maintanance bill the amount will be increase 7,500/- Basic exempt limit so they have to charge GST on entire amount so what is advisable to raise single bill or seprate bill.

Answer 3: Kindly specify as to which amendment you are referring to so that we can reply better to your query.
If the combined bill is for 9,000 then GST will be applicable on the whole consideration of 9,000. This is clarified by para 5 of circular 109/28/2019.
It is important to note here that the exemption is extended only towards "sourcing of goods or services from a third person for the common use of its members" . Therefore other services, for example, renting of a club house for hosting an event for a particular member is not included in this exemption and should be billed separately. (Reply dt. 28/01/2022)