2026-VIL-186-AAR
  1. Home
  2. 2026-VIL-186-AAR

SGST Advance Ruling Authority

GST – Maharashtra AAR - Taxability of maintenance services provided by a promoter under the Maharashtra Ownership Flats Act before formation of a co-operative housing society, company or resident welfare association - Applicant, a developer, maintained the building by paying for common area electricity, housekeeping, security, garden, gym and other services without a formal maintenance agreement with flat owners - Whether maintenance provided by the promoter as a statutory duty is a taxable supply under Section 7 of the CGST Act, 2017 - HELD - GST is a supply-based tax, and whether an activity is mandated by law is irrelevant if it falls within the definition of supply, which requires supply of goods or services, a consideration and the course or furtherance of business. Maintenance of common areas, utilities and facilities is a service supplied in the course of business, and the charges collected from flat purchasers constitute consideration under Section 2(31) - The decision rendered in the context of taxable service under the Finance Act, 1994, a framework that no longer exists, and under GST all goods and services are taxable unless specifically exempted, with no exemption for activities performed under statutory obligation - The Maharashtra Ownership Flats Act governs civil obligations while GST governs taxability of supply, and Schedule III provides no exemption for promoters. The exemption under Entry 77 of Notification No. 12/2017-Central Tax (Rate) is not available as the Applicant is a promoter and not a resident welfare association or society - Maintenance services provided by the Applicant constitute supply under Section 7 and are taxable even though undertaken pursuant to statutory obligation – Ordered accordingly - Levy of GST on advance maintenance collected for eighteen months at the time of agreement for sale - Applicant collected advance maintenance from flat purchasers along with GST and contended that no tax could be levied since it was discharging a statutory obligation before formation of a society or association - Whether GST can be levied on the advance maintenance collected from flat owners - HELD - The advance maintenance is not a refundable deposit but an advance against identifiable future services such as security, housekeeping, electricity for common areas and repairs, and is appropriated periodically for maintenance. It is therefore advance consideration for supply of maintenance services, taxable under Section 13 of the CGST Act at the time of receipt - The Applicant is liable to charge GST on the advance maintenance collected - Levy of GST on monthly maintenance charges collected by the promoter before formation of a co-operative housing society, company or resident welfare association - Whether GST can be levied and collected on monthly maintenance charges paid by flat owners - HELD - Monthly charges are recurring consideration for maintenance services supplied in the course of business. The absence of a society, company or association and the statutory nature of the duty under the Maharashtra Ownership Flats Act do not affect taxability. The principles laid down under the service tax regime cannot be applied to exempt such services under GST - Monthly maintenance charges collected by the promoter constitute consideration for supply of services and are liable to GST.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
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

Security-Code
New Code?

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.

Security-Code
New Code?

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?