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The Petitioner had sought an Advance Ruling as to whether GST is liable only on the amount in excess of Rs.7500/- collected as monthly maintenance charges from the Resident Welfare Associations (RWAs) or on the entire amount in the context of Sl. no. 77(c) of Notification No. 12/2017- Central Tax Rate dated 28 June 2017. However, it was held that when the charges or share of contribution goes above Rs.7500/- per month, such service will not fit the description appearing in Sl. no. 77(c) of 12/2017-CTR and hence such service will not be exempt and GST at appropriate rates are to be charged on the full amount of reimbursement of charges or share of contribution. Aggrieved by the said order the Petitioner filed the current Writ Petition.
In regards to above, referring to Entry No. 77 of the aforementioned Notification the HC noted that the term "upto" employed therein is heavily relied upon by the petitioner to contend that only the exceeded amount is liable for the tax and not the whole amount collected. The term 'upto' hardly needs to be defined and connotes an upper limit. It is interchangeable with the term 'till' and means that any amount till the ceiling of Rs. 7,500/- would exempt for the purposes of GST. Further, the HC further quashed the ruling of the AAR and the Circular stating that the matter thereto is contrary to the express language of the Entry in question and allowed the writ wherein only contributions to RWA in excess of Rs.7,500/- that would be taxable under GST Act.
Greenwood Owners Association vs. UOI
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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