\n(1)<\/em><\/td>\n(2)<\/em><\/td>\n(3)<\/em><\/td>\n(4)<\/em><\/td>\n(5)<\/em><\/td>\n<\/tr>\n\nSL. NO.<\/em><\/td>\nCHAPTER, SECTION, HEADING, GROUP OR SERVICE CODE (TARIFF)<\/em><\/td>\nDESCRIPTION OF SERVICES<\/em><\/td>\nRATE (PER CENT.)<\/em><\/td>\nCONDITION<\/em><\/td>\n<\/tr>\n\n1<\/em><\/td>\n\u2026\u2026\u2026<\/em><\/td>\n\u00a0<\/em><\/td>\n\u00a0<\/em><\/td>\n\u00a0<\/em><\/td>\n<\/tr>\n\n77<\/em><\/td>\nHEADING 9995<\/em><\/td>\n| SERVICE RENDERED BY AN UNINCORPORATED ENTITY OR NGO REGISTERED UNDER THE LAW FOR TIME BEING IN FORCE, IN RESPECT OF ITS OWN MEMBERS IN THE FORM OF CONTRIBUTION OR REIMBURSEMENT OF EXPENSES – <\/em><\/p>\n (A) AS A TRADE UNION;<\/em><\/p>\n(B) IN RESPECT OF CARRYING OUT ANY ACTIVITY, BEING EXEMPT FROM THE GST; OR<\/em><\/p>\n(C) UP TO AN AMOUNT OF RS. 7,500 PER MONTH IN RESPECT OF EACH MEMBER, FOR SUPPLY OF GOODS OR SERVICES FROM A THIRD PERSON AND THE SAME IS MADE FOR A COMMON USE OF ITS MEMBERS.<\/em><\/td>\nNIL<\/em><\/td>\n| NIL<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Entry No. 78 Services by an artist<\/p>\n \n\n\n(1)<\/em><\/td>\n(2)<\/em><\/td>\n(3)<\/em><\/td>\n(4)<\/em><\/td>\n(5)<\/em><\/td>\n<\/tr>\n\nSL. NO.<\/em><\/td>\nCHAPTER, SECTION, HEADING, GROUP OR SERVICE CODE (TARIFF)<\/em><\/td>\nDESCRIPTION OF SERVICES<\/em><\/td>\nRATE <\/em><\/td>\nCONDITION<\/em><\/td>\n<\/tr>\n\n1<\/em><\/td>\n\u2026\u2026\u2026<\/em><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n78<\/em><\/td>\n9996<\/em><\/td>\n| SERVICES RENDERED BY AN ARTIST, IN THE FORM OF PERFORMANCE IN FOLK OR CLASSICAL ART LIKE –<\/em><\/p>\n (A) MUSIC, OR<\/em><\/p>\n(B) DANCE, OR<\/em><\/p>\n(C) THEATRE,<\/em><\/p>\n\u00a0<\/em><\/p>\nWHERE THE CONSIDERATION CHARGED DOES NOT EXCEED RS. 1,50,000:<\/em><\/p>\nPROVIDED THE SAID SERVICE IS NOT PROVIDED BY ARTIST AS A BRAND AMBASSADOR.<\/em><\/td>\nNIL<\/em><\/td>\nNIL<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/span>GOVERNING CASE STUDY<\/span><\/span><\/h3>\nIt was held by the Hon\u2019ble\u00a0high court, that the words employed in Entry 77, \u2018up to\u2019 an amount of Rs.7,500\/-, are to be interpreted, that any contribution, being in\u00a0excess of\u00a0said amount, shall be\u00a0susceptible to\u00a0GST. It means that the amount up to Rs. 7,500\/- would be exempt from the application of GST. Therefore, The clarification by the GST Department\u00a0at the same time as\u00a0early as in 2017 has taken\u00a0the right\u00a0view.<\/p>\n <\/span>BRIEF FACTS<\/span><\/span><\/h3>\n\n- A petition was filed by RWA against an Advance Ruling, wherein it was held that GST would be leviable on the whole amount of contribution received by RWA from its members.<\/li>\n
- After the introduction of GST, an exemption was provided in respect of contribution made by the members of RWA and the same was provided by the Notification 12\/17- CT dated 28.06.2017. Thus, an exemption would be provided where such contribution does not exceed Rs. 5,000 per month per member. However, vide Notification No.2\/18 dated 25.01.2018, the said limit of Rs. 5,000 was raised to Rs. 7,500.<\/li>\n
- Therefore, exemption be granted in respect of contributions made to RWA and the same be available to Rs. 7,500\/- per month per member.<\/li>\n
- In many cases, RWA received contributions in\u00a0more than\u00a0Rs. 7,500. In such situation, question arose that:<\/li>\n<\/ol>\n
\n- Whether\u00a0just in case\u00a0the amount of contribution exceeds Rs. 7,500, the RWA will not have the advantage of\u00a0exemption, and hence, the entire contribution of Rs. 7,500 would be taxable under GST; or<\/li>\n<\/ul>\n
\n- In Initial period, GST Department issued clarification\u00a0just in case\u00a0of Co-operative Housing Society wherein\u00a0it had been\u00a0specifically mentioned that GST would be applicable on consideration received in\u00a0far more than\u00a0Rs. 7,500.<\/li>\n
- Therefore, considering the clarification, all RWAs were levying GST on contributions received accordingly.<\/li>\n
- However, in 2009,\u00a0one among\u00a0the petitioners approached the Authority of advance ruling seeking clarification on this matter.<\/li>\n
- Hon\u2019ble AAR held adverse and stated that exemption\u00a0is available\u00a0given that\u00a0contribution is received up to INR 7,500. If contribution amount exceeds INR 7,500 then entitlement of exemption would stand defeated\u00a0and full\u00a0contribution\u00a0are going to be\u00a0susceptible to\u00a0GST.<\/li>\n
- After the ruling of Hon\u2019ble AAR, CBIC, it was clarified that exemption in respect of contribution\u00a0made up to an amount of Rs. 7,500 would be exempt. However, in case of excess amount is received, the entire amount of contribution would be\u00a0susceptible to\u00a0GST.<\/li>\n<\/ol>\n
<\/span>ISSUES IN RESPECT OF GST ON CONTRIBUTION BY RESIDENTIAL WELFARE ASSOCIATION FROM ITS MEMBERS –<\/strong><\/span><\/span><\/h3>\n\n\n\nSL. NO.<\/em><\/td>\nISSUE<\/em><\/td>\nCLARIFICATION<\/em><\/td>\n<\/tr>\n\n1.<\/em><\/td>\n\u2026\u2026..<\/em><\/td>\n| <\/td>\n<\/tr>\n | \n5.<\/em><\/td>\nHOW SHOULD THE RWA CALCULATE GST PAYABLE WHERE THE MAINTENANCE CHARGES EXCEED <\/em>\u20b9<\/em> 7500\/- PER MONTH PER MEMBER? IS THE GST PAYABLE ONLY ON THE AMOUNT EXCEEDING <\/em>\u20b9<\/em> 7500\/- OR ON THE ENTIRE AMOUNT OF MAINTENANCE CHARGES?<\/em><\/td>\nGST EXEMPTION IN RESPECT OF MAINTENANCE CHARGES RECEIVED BY RWA FROM ITS MEMBERS WOULD BE AVAILABLE PROVIDED THE AMOUNT DOES NOT EXCEED RS. 7500\/- PER MONTH PER MEMBER.<\/em>\u00a0<\/em> WHERE THE SAID AMOUNT OF CHARGES EXCEEDS RS. 7500\/- PER MONTH PER MEMBER, THE WHOLE AMOUNT OF CONSIDERATION WOULD TAXED UNDER GST.\u00a0 FOR EXAMPLE, IF THE MAINTENANCE CHARGES ARE <\/em>\u20b9<\/em> 9000\/- PER MONTH PER MEMBER, GST @ 18% SHALL BE PAYABLE ON THE ENTIRE AMOUNT OF <\/em>\u20b9<\/em> 9000\/- AND NOT ON (<\/em>\u20b9<\/em> 9000<\/em>\u20b9<\/em> 7500) = <\/em>\u20b9<\/em> 1500\/-<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n- Aggrieved with the circular of CBIC and ruling of AAR, a petitioner filed a petition (W.P.No.27100 of 2019) before the Hon\u2019ble\u00a0Madras high court, challenging the Circular No.109\/28\/2019 dated 22.07.2019, in respect of difficulty\u00a0of levying of GST on\u00a0the amount of contribution received by RWA.<\/li>\n<\/ol>\n
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