2026-VIL-56-AAR
  1. Home
  2. 2026-VIL-56-AAR

SGST Advance Ruling Authority

GST – Karnataka AAR – Taxability of Corpus Fund Contributions - The applicant is an apartment owners' association that collects monthly maintenance charges from its members and also collects corpus fund contributions for future contingencies - Whether the corpus fund contributions are treated as "consideration" under the CGST Act, 2017 and attract GST – HELD - The applicant’s contention that “the members and the association are the same person” based on the doctrine of mutuality cannot be accepted. The applicant and its members are to be treated as distinct persons under the Explanation to Section 7(1) of the CGST Act, 2017 - The amounts collected towards the corpus fund are indisputably in the nature of advances for future supply of service and not deposits. The corpus fund collected by the applicant for future contingencies constitutes consideration for a future supply of services and, therefore, attracts GST in terms of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, under SAC 999598 - The corpus fund contributions collected by the applicant for future contingencies constitute "consideration" as advances meant for the future supply of services to members and therefore attract GST – Ordered accordingly - Whether the corpus fund can be treated separately and independently from monthly maintenance charges for GST applicability – HELD - The corpus fund is distinct in character and purpose from the monthly maintenance charges, as the former is a contribution toward future capital expenditures while the latter is consideration for ongoing services. Therefore, the corpus fund can be treated separately and independently from monthly maintenance charges for GST applicability - Time of Supply – HELD – The corpus or sinking fund contributions are collected in advance to meet future contingencies. The GST is payable at the time of collection/receipt of the corpus fund, as the time of supply is triggered on the date of receipt of the advance amounts, in terms of Section 13(2)(a) of the CGST Act.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Analysis of Union Budget 2026-27:
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?