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)