Karnataka AAR Holds Corpus Fund Collection by Apartment Associations Is a Taxable Supply Under CGST Act; GST Payable at Time of Collection, No Rs. 7,500 Exemption
The Karnataka Authority for Advance Ruling has ruled that corpus fund collections by apartment owners’ associations for future capital expenditure constitute a ‘supply’ under Section 7 of the CGST Act, 2017. GST is payable at the time of collection, and the Rs. 7,500 per member per month exemption under Notification No. 12/2017 does not apply to such corpus funds.
