Dec 13, 2017
Updated by Ashish0485 I received a call from a club mahindra representative Mr. Rajnath. According to him, owing to the unique timeshare model of Club Mahindra, there is some ambiguity owing to which club mahindra was forced to pay extra tax to Government on behalf of customers even if the EMIs got completed before July 2017. Thus, they are trying to recover that money from customers.
I asked him to give this in writing and this is what I received (from another representative (named Arosha Jessy):
"Further to your telephonic conversation with Rajnath, we would like to explain about Differential service tax charged against your membership
GST Rate would be 18% instead of current service tax rate of 15% on ASF for all the invoice to be raised w.e.f. 1st July 2017.
All the existing EMI’s to be received post 1st July 2017 will attract GST Rate of 18% instead of current service tax rate of 15%. The Differential GST Rate i.e. 3% need to be recovered from existing customer. E.g. If member is making his past EMI payments after 1st July’17, then GST would apply.
If member is making the ASF which was invoiced before 30th June, then GST does not apply."
However, this is exactly what I was saying all this while that if the transaction has got completed before July 2017 then, a customer is not liable to pay any additional tax. my last EMI was paid on 19th August 2015 and my last ASF was paid on 15th June 2017. So, based on the latest email from Arosha, I should not be liable to pay anything.
Net/net, there are two takeaways:
- As per conditions mentioned in their email, I am not liable to pay any additional tax because all my payments got completed before July 2017, but my dashboard says INR 802.37 to be paid as GST differential.
- What Mr Rajnath said over phone and what was communicated over email contradict each other. So, there is a big communication gap at Club Mahindra.
Now, I am really getting impatient. Please someone, probably someone senior from club mahindra needs to step in and rectify the issue asap.