Applicability of GST on Cooperative Housing Society
1. As per section 2(84) of CGST act persons include “a co-operative society registered under any law relating to co-operative societies;”.
2. As per section 2(17) term business includes “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”.
From the above it is clear that GST is applicable on Co operative Housing Society.
1. S.No. 80 of list of service at NIL rate –
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 person for the common use of its members in a housing society or a residential complex.
– From the above it is clear that collection towards Maintenance charges less than or equals to Rs. 5000 is specifically exempt form GST.
2. Tax payers having aggregate turnover in financial year up to 20 lakhs Annually are exempt from tax. This is common exemption available to all tax payer.
3. Aggregate turnover means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services. Example of taxable supply are service charge, Non-occupancy charges, Interest on delay payment, Sinking fund, Parking charges, Transfer fee Example of exempt or nontaxable supply are Bank interest, FD interest, Water charges etc.
*in case no. 3 GST is applicable on non member income only.
GST Applicability on Various charges
However, if charges are collected by the Society for generation of electricity by Society’s generator or to provide drinking water facility or any other service, then such charges collected by the society are liable to GST.
Reverse charge Applicability –
Being a registered person, Society will have to pay GST on reverse charge basic for availing of services/goods from unregistered dealer.
Input Credit –
Input credit can be claimed only on providing the taxable services. In case society providing both exempted & taxable services, then it can claim proportionate credit on common goods services.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018