High Court Stays Order Related To Levy Of GST On Flat, Villa Maintenance Charges

High Court Stays Order Related To Levy Of GST On Flat, Villa Maintenance Charges

Flat or villa owners paying more than ₹7,500 a month to their resident welfare associations towards maintenance charges will now have to pay Goods and Services Tax (GST) at the rate of 18% for the entire contribution since a Division Bench of the Madras High Court on Thursday stayed a single judge's order.Circulars and instructions issued by the Board are no doubt binding in law on the authorities under the respective statutes, but when the Supreme Court or the High Court declares the law on the question arising for consideration, it would not be appropriate for the court to direct that the circular should be given effect to and not the view expressed in a decision of this Court or the High Court. So far as the clarifications/circulars issued by the Central Government.Justices T.S.Sivagnanam and Sathi Kumar Sukumara Kurup granted the interim stay pursuant to a writ appeal preferred by the Centre against an order passed by the single judge who had recently quashed a circular issued by the Department of Revenue under the Union Finance Ministry on July 22, 2019.the State Government are concerned they represent merely their understanding of the statutory provisions. They are not binding upon the court. It is for the court to declare what the particular provision of statute says and it is not for the executive. Looked at from another angle, a circular which is contrary to the statutory provisions has really no existence in law

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs

  1. To admit and allow this petition.
  2. To issue any appropriate writ, order or direction to the respondents permitting the petitioner to edit and upload actual entries, for the Month +of May-2019 which is at the submission stage.
  3. To issue any appropriate writ, order, or direction to the respondents to modify the conditions and rules mentioned in the Annexure-A by which a registered person can edit any error if occurred during submitting/offsetting the ITC and before filing.

The circular required payment of GST for the entire monthly maintenance and not just for the amount over and above ₹7,500. The single judge had disagreed with such a stand and held that the tax could be collected only for the amount exceeding ₹7,500.It appears that the Nodal Officer at Rajkot did not even bother to give a formal reply or respond to the representation preferred by the writ applicant, referred to above. The writ applicant did try his best to take up the matter with the concerned authority, but ultimately had to come before this Court with the present writ application.

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