XYZ is a commercial Cooperative Society. The land of the society is on lease and therefore, charges needs to be paid to the District Collector against such leased land which is subsequently recovered from the members at actuals. Similarly, Municipal Tax paid to the corporation is recovered from the members at actuals. 1) Whether XYZ is required to pay GST on such amount recovered? 2) If no, whether proportionate Input Tax Credit (ITC) is required to be reversed since it is an exempted supply?
Frah Saeed Answered question August 16, 2020
In our view these will be exempted supply and thus GST will not be applicable on recovery from residents. However ITC reversal would be required if RWA is registered.
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Frah Saeed Answered question August 16, 2020