07:18] Sekarreporter: [7/14, 07:18] Sekarreporter: [7/14, 07:18] Sekarreporter: https://twitter.com/sekarreporter1/status/1415125925541253121?s=08 [7/14, 07:18] Sekarreporter: Madras HC holds that RWAs are not liable to pay GST if the monthly contribution is “upto Rs.7,500” and they have to pay only on the amount in excess of Rs.7,500.

[7/14, 07:18] Sekarreporter: [7/14, 07:18] Sekarreporter: [7/14, 07:18] Sekarreporter: https://twitter.com/sekarreporter1/status/1415125925541253121?s=08
[7/14, 07:18] Sekarreporter: Madras HC holds that RWAs are not liable to pay GST if the monthly contribution is “upto Rs.7,500” and they have to pay only on the amount in excess of Rs.7,500.
[7/14, 07:18] Sekarreporter: Press Note.
Madras HC holds RWAs liable to pay GST only on amount in excess of Rs.7,500.
Quashes CBIC Circular and AAR ruling.
Residential Welfare Associations were exempted from payment of GST for the monthly contributions received from its members, upto an amount of Rs.5,000 per month, which was later enhanced upto Rs.7,500. An issue arose, if the monthly contribution is more than Rs.7,500, whether GST is payable on the whole amount or only on the amount exceeding Rs.7,500.
TVH Lumbini Square Owners Association, Chennai have earlier approached the Tamil Nadu GST Advance Ruling Authority, which has held that GST is payable on the whole amount. For example, if the monthly contribution is Rs.10,000, GST at the rate of 18 % is payable on the entire amount and not only on Rs.2,500 (after claiming exemption upto Rs.7,500).
Against the decision of the Advance Ruling Authority, Writ Petition was filed by the TVH Lumbini Square Owners Association before the Madras High Court in 2019 and a stay was granted.
Representing TVH Lumbini Square Owners Association, Shri. G. Natarajan, Advocate argued that at the time of introduction of GST the Central Board of Indirect Tax and Customs issued a Flyer clarifying that GST is payable only on the amount in excess, but later they changed track and issued a circular to the contrary. Wherever the intention was to deny the exemption if the consideration exceeds a fixed sum, it was specifically provided like in the case of performing artists, where GST is exempted only if their charges for performance is less than Rs.1,50,000, whereas in case of RWA, the exemption was upto Rs.7,500 it was argued.
Hon’ble Justice, Smt. Anitha Sumanth of Madras High Court has held that the AAR ruling as well as the CBIC’s circular are contrary to the plain language of the Notification and quashed the same and allowed a batch of writ petitions filed by various associations.
This brings much relief to the RWAs.

G. Natarajan, Advocate. 93400 54477
[7/14, 07:19] Sekarreporter: W.P. Nos.5518 & 1555 of 2020 and 27100 & 30004 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 01.07.2021
CORAM:
THE HON’BLE Dr.JUSTICE ANITA SUMANTH
W.P. Nos.5518 & 1555 of 2020 and
27100 & 30004 of 2019
and
WMP. Nos.1820, 6451, 6452, 6453, 1821 of 2020 29909,
29912, 29906, 26478 & 26479 of 2019
Greenwood Owners Association,
Rep. by its President,
Mr.thilak K Nath,
Buckingham Street,
House of Hiranandani,
5/63, Rajiv Gandhi Salai, Egattur,
Thalambur Post, Chennai – 600 130.
.. Petitioner in W.P. No.5518 of 2020
Oceanic Owners Association,
Rep. by its President,
Maj.Gen.Jose Joseph Manavalan,
Buckingham Street, Oceanic,
House of Hiranandani,
5/63, Rajiv Gandhi Salai, Egattur,
Thalambur Post, Chennai – 600 130.
.. Petitioner in W.P. No.1555 of 2020
M/s.TVH Lumbini Square Owners Association
Represented by its Secretary Mr.A.M.Fakri
Near 2
nd Block 127A TVH Lumbini Square,
1
https://www.mhc.tn.gov.in/judis/
[7/14, 07:19] Sekarreporter: W.P. Nos.5518 & 1555 of 2020 and 27100 & 30004 of 2019
For Petitioner : M/s.Meera Moganasundan
In W.P. No.5518 of 2020
Ms.R. Vaishali
In W.P. Nos.1555 of 2020
and W.P. No.30004 of 2019
Mr.G.Nataarajan,
In W.P. No.27100 of 2019

For Respondents : Mrs.Hema Muralikrishnan,
Senior Standing Counsel
in W.P. Nos.5518 of 2020,
27100 & 30004 of 2019
in 1555 of 2020 for R2
Mr.C.Kulandaivel,
Senior Panel Counsel for R1
in W.P. No.1555 of 2020
C O M M O N O R D E R
All petitioners are Resident Welfare Associations (RWA) in apartment
complexes, barring one individual, who is a resident in an apartment.
2. The petitioner in W.P.No.27100 of 2019 challenges an order of the
Authority for Advance Ruling (AAR) levying tax on the entirety of the
contribution by him to a RWA and the petitioners in W.P.Nos.5518 and 1555
of 2020 and 30004 of 2019 challenge Circular No.109/28/2019 dated
22.07.2019, also on the same issue.
3. We are concerned with the period post 01.07.2017 when the Goods
and Services Tax Act, 2017 (GST Act) was introduced. With the onset of
4
https://www.mhc.tn.gov.in/judis/

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