Interim order by Madras HC: GST on above 7500 for RWA

GST on above 7500 for RWA:

Madras High Court passes an interim order to charge GST only on the amount in excess of Rs.7500/- but not on the entire amount. This order is against the order of AAAR in case of TVH Lumbini square owners association. This is a Tamil Nadu advance ruling upheld by AAAR. It was held that where the charges were more than Rs. 7500 per month per flat, exemption of notification no. 12/2017 will not be available. In this case, the words written in 12/2017, entry no. 77(c) was interpreted against the taxpayer. The entry is drafted as:

There can be two intrepretation for this entry. When the charges are more than Rs. 7500, the amount more than Rs. 7500 can be chargeable to GST. But the stand taken by the department was that the entire amount will be taxable once it crosses the mark of Rs. 7500. Litigation is going on for this issue since then.

Now this order of Madras high court is a relief for taxpayers.