| Question And Answer | |
|---|---|
| Subject: | Amendment of the GST Law to apply for Clubs and Associations |
| Category: | GST |
| Querist: | vswaminathan |
| Answered by: | Advocate C.B.Thakar |
| Tags: | Amendment, GST, Mutual Concern, Principle of mutuality |
| Date: | December 17, 2022 |
Apropos of the Question and Answer @ https://itatonline.org/digest/qa/is-collection-of-gst-by-mc-of-housing-associations-not-highly-objectionable-hence-to-be-stopped/
STATES have the power to levy GST on ‘supply of goods’ ; whereas the CENTRE ‘s power is restricted to levy tax only on ‘supply of services’ . As such, the 2020-21 GST Law Amendment, according to a view, rightly canvassed so, in so far as it imposes GST Levy on Clubs and Associations, by a deeming provision, cannot become effective in any State unless and until there is an independent Notification issued by that State . Premised so, the point of grave doubt is, besides the applicable MUTUALITY PRINCIPLE ,- whether collection of GST by the MC of a housing complex is illegal if the concerned State has not issued a Notification as envisaged !?
I feel the assumption that State has power to levy tax on goods and Centre on services appears to be mistaken. Under GST both have power to levy tax on goods and services. It is Central council which takes policy decisions and all states also implement same. Regarding 2020/2021 amendment about club, association, formalities must have been completed by Centre and State uniformly, therefore difficult to say collection of gst by MC is incorrect.
Pending Expert’ s Answer, with a view to enabling an early input, , may suggest to look for clues here >https://in.search.yahoo.com/search?fr=mcafee&type=E211IN1316G0&p=can+a+legilation+on+a+state+subject+take+effect+by+virtue+of+a+central+legislation
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