As regards the aforesaid observations of the MAAR, the Appellant have contended that as per Sec 7 oftheCGST Act, 2017, supplyshould bemadeforaconsiderationinthecourseor furtherance of business. A gratuitous payment byan outgoingmember cannot be regardedas a consideration but rather in substance isa gift to the societyas the member ispaying on his own volition. The voluntary contribution is paid bythe outgoingmember onhisownfreewilland onlyforthewelfareof the societyandsocietyisfreetousethefundinanymannerasthey require. Appellantfurther contended that the contribution doesnot pass the test given u/s 2(3l) of the CGST Actwhichstatesthat anyconsiderationreceivedshouldbeininducementof supplyof servicesor goods.Since thereisnosupplyof servicesor goodsbythesociety,the entire contributionshouldnot be subjectto GST. 10. On perusal ofthe aforesaid contention of the Appellant vis-à-vis the impugned advance ruling of theMAAR, the moot issue before us is whether payment received from the outgoing member in thenameof voluntarycontributionisaconsiderationinresponse toor fortheinducement of the supplyof goodsor services or both. 11. Todecide the aforesaid issue,we would like tofirst look after the nature of the activity carried out bythe appellantand exact nature of transaction where outgoing member has paid an amount to the appellantwhichappellantclaimstobevoluntarycontribution.Itisobservedthatthe appellantisaco-operativehousingsocietyregisteredundertheMaharashtraCo-operative Housing SocietyAct(MCHSAct)whichprovidesservicestoitsmembersand chargesGST onmaintenance chargesrecoveredfromitsMembers.The Appellant isalso collectingfunds from itsmembers forfuture major repairsand renovation of the premises to keep the building in bettercondition.Suchfundsmaynothaveimmediateutilizationpurpose.The amount will onlybeutilizedasandwhenneedof repair tosociety building arises andonce the Applicant finalizes onthe bids received for such repairs to be carried out. Any amount collected by society for the repairservices agreedtobe suppliedbysocietyinthenearfutureisanadvanceandis exigibleto tax at the time of receipt of the amount frommembers. 12. In theinstant case, outgoingmember of thesociety,Mr SanjayPrakashSahjwani,hasmade paymentof Rs17,70.000/-tothe societywhich appellantclaims tobe voluntarycontribution on his own willandvolition.Onbare perusalof theaffidavitsubmittedbytheappellantin respectof anoutgoingmember bythenameMr.SanjayPrakashSahjwanimentionsthatthe amount of Rs 17,70,000/- is being given towards 'Building Betterment Fund'. It is clearly stated in the affidavit that the said amount is inclusive of GST. Further, the appellant has also submitted a copy of the Affidavit of Shri Chandresh Thakker, Treasurer of the Appellants Society,beforetheMAAR.Onbare perusalof theaffidavitsubmittedbythe Treasurer,it is Page 15 of 17
