Page 44 - GSTL_23rd July 2020_Vol 38_Part 4

J102 GST LAW TIMES [ Vol. 38

GST PAID ON MAINTENANCE CHARGES FOR REPLACEMENT OF LIFT
GST PAID ON MAINTENANCE CHARGES
FOR REPLACEMENT OF LIFT WHETHER
COVERED UNDER BLOCKED CREDITS?
GST PAID ON MAINTENANCE CHARGES FOR REPLACEMENT OF LIFT
By
Ramesh Chandra Jena, B.A. (Hons.), M.A. (Eco.),
D.M.M., LL.B.
ADVOCATE & TAX CONSULTANT

The activity of the society can be said to be in the
course or furtherance of business and as the definition of
business as per Section 2(17) of the CGST Act, 2017, includes the activities of the
housing society, charges paid to society attract the levy of GST. A Co-operative
Housing Society provides various services to its resident for which members are
charged maintenance charges and if monthly bill is more than ` 7,500/- then GST
is payable on the amount in excess of ` 7,500/- vide Notification No. 12/2017-
C.T. (Rate), dated 28-6-2017 as amended by Notification No. 2/2018-C.T., dated
25-1-2018.
Now the moot question arises, whether GST paid by a Housing society
on monthly maintenance charges on replacement of lift/elevator is covered un-
der blocked credit? This question is answered by Authority for Advance Ruling
under GST, Maharashtra.
Advance Ruling
In Re : Las Palmas Co-operative Housing Society Limited, reported in 2020
(34) G.S.T.L. 293 (A.A.R. - GST - Mah.) vide Order No. ARA-31/2019-20/B-13-
Mumbai, dated 22-1-2020.
Brief facts : Applicant, a Co-operative Housing Society registered under
the Maharashtra Co-operative Housing Society Act, provides various services to
its residents for which members are charged maintenance charges under various
Heads like - Service charges, Electricity charges, Lift charges, Insurance, etc. The
Applicant Society charges GST on such Maintenance Bills as applicable. Appli-
cant has proposed to replace the existing LIFT along with its supporting struc-
tures. The applicant seeking an advance ruling in respect of the following ques-
tions :
(1) Whether the applicant - a Co-operative Housing Society paying
Goods and Services Tax (GST) on Maintenance Charges collected
from its Members, shall be entitled to claim Input Tax Credit of GST
paid on replacement of existing lift/elevator at its own premises to
the vendor registered under the Goods and Services Tax Act for
manufacture, supply, installation and commissioning of
lift/elevator? And
(2) Whether the Input Tax Credit, if available; is not covered under
blocked credits under the Goods and Services Tax Act?
Submission and contention of the applicant :-
Applicant has reproduced the provision of Section 16(1) of the CGST Act,
pertaining to eligibility and conditions for taking ITC and also reproduced the
GST LAW TIMES  23rd July 2020  44