Case of Crimson Dawn Apartment Owners Welfare Association, AAR Tamil Nadu Ruling Dated 7th May 2025. AAR ruled that the amount of corpus/sinking/capital fund collected from the residents for the purpose of painting and carrying out some building maintenance work in the common area of the apartment is subjected to CGST and SGST and applicable tax need to be paid. As the applicant liable to pay GST on the collection of corpus/sinking/ capital fund, they can utilize the ITC availed towards their outward liability subject to following the provisions of Section 17(2) of the Act and Rule 42 of the Rules.
— In terms of SI. No. 77 of Notification No. 12/2017 (Rate) dated 28th June 2017, read with Circular No.109/28/2019-GST dated 22nd July 2019, if the subscription/contribution per month per member is less than Rs.7,500/-, no GST is liable to be charged and collected from the members.