GST on Collections by RWA

The ruling establishes a decisive principle: RWA-member transactions are taxable supplies unless specifically exempted, owing to the legal fiction of distinct persons under GST. 

While limited exemption is available for maintenance charges up to ₹7,500 per month per member, other recoveries, such as water charges, electricity for common areas, and corpus fund, are treated as taxable based on their characterization as consideration for supply or advance for future supply. The decision significantly narrows the perceived “mutuality shield” in GST.