The Karnataka Authority for Advance Rulings (AAR) has held that contributions collected from members of a co-operative housing society towards a sinking fund - meant for future upkeep of the society, are subject to Goods and Services Tax (GST) at 18%.It further held that the GST levy would be triggered upon receipt of the amount from the members and not in the future when the sinking fund is actually utilised – such as for painting of the building and common areas or replacement or repairs of assets such as lifts or generators.The resident welfare association (RWA) of the Bengaluru based Olety Landmark Apartments had approached the AAR to ascertain whether it is liable to pay GST on the amounts which it collects from its members towards the sinking fund (also termed as corpus fund).The basic foundation of GST is that it is a tax on the ‘supply’ of goods or services. The CHS was collecting contributions from its members towards the sinking fund, as it was required to do so under the bylaws (Statue), it stated in its submissions.