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GST collected by builder on advance maintenance but not returning along with balance to society

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sushil goyal

21 Points Posted on 17 February 2021

We have a housing society of 65 flats . Our builder had collected advance maintenance for 30 months from each flat at the time of possession along with 18% GST. Now after 15 months he his handing over the maintenance to the housing society but only the basic amount. He says the GST has been paid and cannot be refunded. Our issue is that our monthly maintenance amount is above the threshold limits and we are registered under GST. The amount received from the builder in society bank account is after the Society GST Registration date. Society member are not ready to pay GST on the same amount again.

what will be our liability towards GST in this context. kindly guide.

Replies (2)

Quick Summary

A housing society paid advance maintenance, including 18% GST, to their builder. The builder is now handing over maintenance but only returning the basic amount, claiming the GST was already paid and is non-refundable. However, the society is GST-registered and the funds received are post-registration. This raises questions about the society's GST liability and whether the builder is legally obliged to refund the collected GST.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 17 February 2021

Your monthly collection is a seperate supply and gst will have to be paid.
I think the builder who collected tax on his supplies will have to pay the government. His supplies and your supplies are different.
In case of detailed reply you can mail me

KONERU PRABHAKARA RAO

22 Points Posted on 29 April 2022

If builder pays money collected by him from your society he is 1st responsible to pay govt the amount for the duration of maintenance he collected from your society.

Even if he leaves the project and association takes the maintenance even then society has every right to take advance cheques from the builder for the rest of the period he is liable.

The amount of maintenance on account will have to be transfered along withGST part to association.

Or else it amounts to criminal misappropriation and also criminal breach of trust for which he has to penalised under IPC.