{"id":8951,"date":"2026-05-04T17:33:02","date_gmt":"2026-05-04T12:03:02","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8951"},"modified":"2026-05-05T08:36:50","modified_gmt":"2026-05-05T03:06:50","slug":"corpus-fund-by-rwa-taxable-as-supply-gst-payable-on-receipt-aar","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/corpus-fund-by-rwa-taxable-as-supply-gst-payable-on-receipt-aar","title":{"rendered":"Corpus Fund by RWA Taxable as Supply \u2013 GST Payable on Receipt | AAR"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000418932\/collection-of-corpus-fund-by-rwa-from-members-to-be-treated-as-supply-gst-payable-at-receipt-as-advance-aar\">In re: Apartment Owners Association of Raj Lake View (2026) 41 Centax 369 (A.A.R.-GST-Kar.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri Kalyanam Rajesh Rama Rao<\/strong> &amp; <strong>Sivakumar S. Itagi,<\/strong> Member<\/li>\n<li><strong>Shri Nagaraj Gudlur Krishnaprasad, <\/strong>Treasurer<strong>,<\/strong> for the Applicant.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The applicant, an apartment owners\u2019 association, collected monthly maintenance charges from its members for day-to-day operations and additionally proposed to collect a corpus fund for future capital expenditure such as major repairs, painting, and replacement of assets. It sought an advance ruling on whether such corpus fund collection would qualify as \u201csupply\u201d under GST, the applicable time of supply, and whether exemption up to Rs. 7,500 per member per month under <a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2012%2F2017-CT%20(Rate)&amp;itemType=AP\">Notification No. 12\/2017-CT (Rate)<\/a> would apply. The applicant contended that the corpus fund was in the nature of a deposit and not consideration, and hence not taxable at the time of collection.<\/p>\n<h2><em>AAR Held<\/em><\/h2>\n<p>The Authority for Advance Ruling held that the applicant and its members are distinct persons under Section 7, and the collection of corpus fund for future capital expenditure constitutes consideration for supply of services. It was further held that such corpus fund is in the nature of an advance and not a deposit, thereby qualifying as a \u201csupply\u201d under GST. Accordingly, GST is payable at the time of receipt of the corpus fund in terms of Section 13(2)(a). The Authority also held that corpus fund is distinct from monthly maintenance charges and therefore not eligible for exemption of Rs. 7,500 per member per month under <a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2012%2F2017-CT%20(Rate)&amp;itemType=AP\">Notification No. 12\/2017-CT (Rate)<\/a>. The ruling was thus in favour of the revenue.<\/p>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2012%20of%202017-Central%20Tax%20(Rate)&amp;itemType=AP\">Notification No. 12 of 2017-Central Tax (Rate)<\/a>, dated 28-6-2017<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2011%20of%202017-Central%20Tax%20(Rate)&amp;itemType=AP\">Notification No. 11 of 2017-Central Tax (Rate)<\/a>, dated 28-6-2017<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: In re: Apartment Owners Association of Raj Lake View (2026)&hellip;<\/p>\n","protected":false},"author":19,"featured_media":8960,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-8951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Corpus Fund by RWA Taxable as Supply \u2013 GST Payable on Receipt | AAR<\/title>\n<meta name=\"description\" content=\"AAR rules corpus fund collected by RWA is taxable supply, treated as advance; 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