Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 23-11-2018 Last Replied Date:- 16-12-2018 – First of All housing societies means unincorporated body or Non -Profit entity registered under any law for the time being in force whether it is cooperative society or society register under Societies Act. Simply put these are a collective body of persons, who stay in a residential society. As a collective body, they would be supplying certain services to its members, be it collecting statutory dues from its members and remitting to statutory authorities, maintenance of the building, security etc. A Society is akin to a club, which is composed of its members. So, can a service provided by a Housing Society to its members be treated as service provided by one person to another. The answer is yes. The following extracts of the GST law will make the position clear. Section- 9 of the CGST Act says that GST is applicable on supply of Goods and Services . Section -7 of the CGST Act na
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ncement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities. Thus, as per section 2(17)(e) of the CGST Act, 2017 provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members is deemed to be a business. The activities of the housing society would thus attract the levy of GST and the housing
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its members, GST shall be charged on ₹ 1000 only. Therefore charges collected by the society on account of property tax, electricity charges shall be excluded while calculating the limit of ₹ 7500. A per the TRU F.N. 332/04/2017 issued by the Ministry of Finance, the following FAQ has been released . Subject: FAQs on levy of GST on supply of services to the Co-operative society- reg S. No. Question Answer 1. The society collects the following charges from the members on quarterly basis as follows: 1.Property Tax-actual as per Municipal Corporation of Greater Mumbai (MCGM) 2.Water Tax- Municipal Corporation of Greater Mumbai (MCGM) 3.Non- Agricultural Tax- Maharashtra State Government 4.Electricity charges 5.Sinking Fund- mandatory under the Bye-laws of the Co-operative Societies 6.Repairs & maintenance fund 7.Car parking Charges 8.Non Occupancy Charges 9.Simple interest for late payment. From the tax/ charge as listed above, on which GST is not applicable. 1. Services p
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no GST is applicable. Maintenance charges means only maintenance or collection of all charges This is applicable to only the reimbursements of charges or share of up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members. Here, charges mean the indivisual contributions made by members of the society to avail services or goods by the society from a third party for common use. [*Entry 77(c) of notification no 12/2017 Central Tax (Rate) dated 28.6.2017 refers] 3. Monthly maintenance (all above charges) are below ₹ 5000/-but yearly Reimbursement of charges or share of contribution up to an amount of ₹ 5000/- per *Amount of ₹ 5000 shall be read as ₹ 7500 amended since 25.01.2018. All Housing Societies Falls under the Parameter of Notification No. 12 dated 28.06.2017. – > Answer is No Reason of the above answer is as follows: If the turnover of housing society is above 20 la
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