Hello friends in the current article we will discuss about implications of GST for housing societies. Housing societies are entities registered under the Co-operative laws of respective state or union territories. According to various laws in place ‘Housing societies’ means a society the object of which is to provide its members provide its members with open plots for housing, dwelling houses or flats or if open plots, the dwelling houses or flats are already acquired, to provide its members common amenities and services. When we put this definition simply the crux we get it is a collective body of persons, who stay in the residential societies and they collect various dues which they eventually remit to authorities and they also collect fee or dues for the maintenance of building of providing securities etc.
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Seems some of the stuff mentioned here are incorrect.
Registration limit is Rs.20 lakhs. It’s not just turnover that should be considered for this 20 lakhs, but we should consider aggregate turnover which includes exempted turnover, which is not mentioned here.
Monthly maintenance charges – if these are provided by thirdparty to the RWA, these are exempted up to 7500, otherwise these are taxable.
Sinking fund – taxable as these represents amount received for future service.
Suggest the author to read the provisions utmost carefully and write on public forums like this.
If the turnover of housing society is above 25 lakhs, it needs to take registration under GST in terms of Section 22 of the CGST Act, 2017. Is it 25 lakhs or 20 lakhs?