GST to be levied on common maintenance fund/deposit collected by society from its members

  • GST
  • Case Law
  • Financeseva

Fact of the Case 

  • The applicant society provided services to maintain common facilities/amenities to its members.  
  • It filed a motion for advance judgment to determine whether it would be liable to pay GST on the joint maintenance fund/deposit collected from its members. 

Judgement 

  • The Authority for Advance Ruling observed that if the deposit would be nonrefundable or any outstanding amount of amount against the supply made to the client may be adjusted from this deposit, then such deposit would be taxable under GST.  
  • The applicant was collecting deposits for common maintenance funds as non-returnable common maintenance funds. Therefore, GST will be levied on a common maintenance fund/deposit from its members.