Treatment of GST in Residential Complexes for Maintenance, Electricity Charges, and Advance Collections
Fact and issue of the case
M/s. NCC URBAN ONE APARTMENT OWNERS MUTUALLY AIDED CO-OP SOCIETY LIMITED (NCCLIOMACS), Narsingi, Puppalaguda Main Road, Hyderabad, Rangareddy, Telangana-500089 (36AAGAN5854N1ZX) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.
At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression ‘GST Act’ would be a common reference to both CGST Act and TGST Act.
It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- under SGST and Rs. 5,000/- under CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided nor are pending before any authority under any provisions of the CGST/TGST Act’2017. The application is, therefore, admitted after examining it and the records called for and after hearing the applicant as per section 98(2) of TGST Act’2017.
BRIEF FACTS OF THE CASE:
The applicant NCC URBAN ONE APARTMENT OWNERS MUTUALLY AIDED CO-OP SOCIETY LIMITED (NCCLIOMACS) is a non-profit entity, registered under Telangana Mutually Aided Co-Op Society Act, and consists of only residential flats/members with GSTIN-36AAGAN5854N1ZX
a) The applicant submitted that NCCUOMACS currently collects monthly maintenance charges from its members to meet the society’s maintenance costs.
b) That the monthly collection charges also include common area electricity charges. The actual common area electricity bill is divided by total carpet area and pro rata charges are collected from each of the members as per their flat area.
c) That in addition to the monthly maintenance charges NCCUOMACS presently has some rental incomes from commercial establishments in the society. The applicable GST is collected on the rent and is deposited with the department on a regular basis.
Observation of the court
The authorized representative Ravi Shanker Chittiboyina, CA appeared before the AAR on 24.05.2023 and reiterated their averments in the application submitted and averred as follows:
That, they are NCC Urban One Apartments Owners Macs Limited. And as such they are collecting Electricity charges incurred for common facilities on actual bill basis and paying the same to TSSPDCL.
That, they are pure agents and that value of supply of services under Rule 33 of CGST Rules, 2017 shall not include the consideration received and passed on to TSSPDCL.
During the course of hearing the applicant was requested to submit the following documents:
a. Electricity bill for last (3) months.
b. Attested Ledger copies of the bills raised on the residents.
Further, the Authorised Representative/Applicant M/s. NCC Urban One Apartment Owners Mutually Aided Coop Society Limited, Hyderabad, reiterated that their case /Similar Case is not pending in any proceedings in the applicant’s case under any of the provision of the Act and have not already decided in any proceedings in the applicant’s case under any of the provisions of the Act.
In the result, appeal of the assessee is allowed and ruled in favour of the assessee
Read the full order from hereIn-re-NCC-Urban-One-Apartment-Owners-Mutually-Aided-Co-Op-Society-Limited-GST-AAR-Telangana2