| Question And Answer | |
|---|---|
| Subject: | Is Collection of GST by MC of Housing Associations not highly objectionable hence to be stopped ? |
| Category: | GST |
| Querist: | vswaminathan |
| Answered by: | Advocate C.B.Thakar |
| Tags: | GST, Housing Societies |
| Date: | August 27, 2022 |
Attention is invited to the last posted comment wrt the AAR in re Bowring case. The AAR has upheld the claim for exemption on the ground MUTUALITY, pending Notification by the central and state governments. In essence, the 2021Amendment of the GST law , that too with retro effect , is not in force till then.
However , some high end housing associations who have already been collecting GST without considering , rather in violation and blatantly ignoring, the host of precedents, have started making additional collections.
Is that not highly objectionable and the governing committee should stop /prevented from doing so; ?
From query it appears that it is in the background of AR in Bowring case vis-a-vis amendment in section 7 and others effected in 2021. While giving AR in above case dated 22.04.2021, the Ld. AAR has applied concept of Mutuality noting that though there is amendment, it is still not made effective. However, the above amendment is now made effective vide Notification No.39/2021 – Central Tax – dated 21.12.2021. It is effective from 01.01.2022. Since it is retrospective amendment after 01.01.2022 it will apply from 01.07.2017. Under above circumstances, collecting GST by housing associations cannot be said to be unjustified. Unless the above amendment is challenged or any other interpretation is taken, the stand taken by Housing association shall be considered to be correct.
Maintenance collected by RWAs is of the, by the and for them. No service is provided by the rwa. Most of the Services are provided by 3rd party. And money paid to them is gst taxed. Paying gst on the money collected from rwa members amounts to double taxation.
A Rejoinder (:
Q
FROM QUERY IT APPEARS that it is…………….
UNDER ABOVE CIRCUMSTANCES, COLLECTING GST BY HOUSING ASSOCIATIONS CANNOT BE SAID TO BE UNJUSTIFIED. UNLESS THE ABOVE AMENDMENT IS CHALLENGED OR ANY OTHER INTERPRETATION IS TAKEN, THE STAND TAKEN BY HOUSING ASSOCIATION SHALL BE CONSIDERED TO BE CORRECT.
UQ
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Prima facie, in providing his ANSWER the expert has inadvertently or otherwise confined self to the ‘query’ raised seeking , for THE COMMON GOOD /in quest of a well-considered reply. It stands to see that, more than obviously, for reasons difficult to guess or make out, the host of FEED Input supplied in the two cited Links have not been gone through and the merits thereof have not been appreciated. Had that been done, in one’s own perspective, and firm conviction, the ANSWER should have been just to the contrary!?
EXpect that the expert will be, in all fairness not mind but review and come out with the ‘correct’ answer with focus on the viewpoints put forth for due consideration!?
KEY Note: For a full fledged critical study and analytical appreciation, suggest not to skirt or shy away but mindfully go through the feed SUPPLIED @-
https://lnkd.in/gjj6-ZEJ
< Under-
16. Housing Association & ‘’Mutuality”- (Supplement II)
17. HOUSING ASSOCIATION -Mutuality Principle- Supplement
18. “Mutuality’ – Doctrine of- A Critical Study
…..
courtesy
ADMN
It will be in the ‘common interest’/for the benefit of one and all having concerns/vested interests, , either as a professional or otherwise, if the learned expert is kind enough not mind to review but share his well-considered ‘opinion’ as requested of.
Incidentally, the different line of reasoning and eminent observations in , among others, the write-up referred and available @
https://www.linkedin.com/posts/venkataraman-swaminathan-8a9b9575_gst-on-clubs-societies-etc-a-critical-activity-6977199803566878721-m0_K/?utm_source=share&utm_medium=member_desktop,
may come in handy for additionally enabling such a review !