GST COLLECTED FROM CHSL FROM ITS MEMBERS ON NEW LIFT IN 25 YEAR OLD BUILDING

Greetings !!!

As subjected please advise on below matter:

1) We have finalized lift vendor in SGM to replace our old 25 years lift

2) Lift Vendor will Raise invoice of 4.00 Cr principal + 18% Gst approx 72 lakhs - total invoice 4.72 CR on our CHSL

3) Our CHSL is collecting from its resident members 5.60 Cr stating that 4.72 Cr needs to be paid to Lift Vendor and balance 85 lakh to GST department -

4) Is point 3 correct ? Because as layman understanding 312 members are consumers they need to pay product value + 18 % GST directly to vendor and not to pay Extra 18% GST to GST department

if yes then as 312 members are consumers then they are paying 18 + 18% GST on lifts - How can we appeal to GST department or Finance ministry for this whopping taxes

Regards

Anup

Hi Anup,

Thanks for sharing the details. Here’s a breakdown to clarify the GST situation on your CHSL lift replacement:

Understanding the GST on the lift supply:

Vendor’s invoice: ₹4 Cr + 18% GST = ₹4.72 Cr (total).
CHSL collects from members: ₹5.60 Cr (which is ₹4.72 Cr + ₹0.88 Cr extra).

Is the CHSL charging members GST twice?

No, ideally not. The vendor charges ₹4 Cr + 18% GST (₹72 lakh) = ₹4.72 Cr.
The CHSL collects this total amount from members. Members pay this total amount once.
If CHSL is charging members ₹5.60 Cr, it looks like an extra 18% GST is being charged on top of vendor’s GST, which effectively means double GST.

Why this happens?

The supply of lift and its installation is one composite supply liable for GST @ 18%.
The CHSL is not supposed to charge GST again to members on top of what vendor charged.
Members pay their share of the vendor’s invoice amount including GST, not an extra GST separately.

What can be done?

The CHSL should collect the exact amount payable to vendor inclusive of GST (₹4.72 Cr) from members — no extra GST over that.
The extra ₹88 lakh collected as GST again from members is not legally justified.
CHSL cannot collect GST twice on the same supply; that is double taxation.

How to appeal or rectify?

CHSL committee can write to the GST department or finance ministry explaining the situation.
You can request a clarification or intervention citing the double taxation and unfair burden on members.
Members may also seek help from a tax consultant or legal expert to file grievance or representation.
You can also request the vendor or GST department for clarification if CHSL is registered under GST or not and whether they are charging GST on their collections.

Summary:

Members should pay the vendor’s invoice amount including GST once.
No additional GST should be charged by CHSL on top of vendor’s GST.
The CHSL must adjust their collections accordingly and refund excess collected if any.