FAQs on levy of GST on supply of services to the Co-operative society
GST
Dated:- 5-9-2017
F.No.332/04/2017-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
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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
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rinking water facility or any other service, then such charges collected by the society are liable to GST.
3. Sinking fund, repairs & maintenance fund, car parking charges, Non- occupancy charges or simple interest for late payment, attract GST, as these charges are collected by the RWA/Co-operative Society for supply of services meant for its members.
2.
As per guidelines on maintenance charges upto ₹ 5000/- 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
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non-member) cumulatively exceeds the threshold limit as per GST, then GST is leviable on such supply of services.
4.
At present we are following quarterly billing-whether we should change to monthly billing in view of the monthly return to be filed under GST Rules.
It is individual business decision.
*[Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution – (a) as a trade union; (b) for the provision of carrying out any activity which is exempt from the levy of Goods and service Tax; or (c) up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third pers
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