APPLICABILITY OF GST

In the present law, GOODS AND SERVICE TAX ACT, 2017, there is no scope for any Profitability unlike in income tax there is benefit for non-profit organisation. In GST whether an organisation makes profit or not is not relevant.

REGISTRATION UNDER GST

Limit for registration is Rs. 20,00,000 for services. Limit for registration increased to Rs.40 lakhs for Goods w e 01/04/2019.For Housing Societies’ the following table suggests registration criteria.

Case Condition Liable to take registration
Aggregate Turnover Monthly Contribution per member per month
I Less than Rs. 20 lakhs Less than Rs.7500 NO
II Less than Rs. 20 lakhs More than Rs.7500 NO
III More than Rs. 20 lakhs Less than Rs.7500 YES
IV More than Rs. 20 lakhs More than Rs.7500 YES

Reverse charge mechanism (RCM) means GST payable by service receiver.Earlier RCM was payable on services received from unregistered dealer; Now it is suspended.

GST Applicability on Security Service from 01.01.2019 : 

With effect from 01.01.2019 Any Registered Person receiving security services (Service provided by way of supply of security personnel) from any person other than a body corporate is required to pay GST on reverse charge basis.

Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be opted by any For Other Service Providers subject to threshold limit of turnover in the preceding Financial Year Rs. 50 lakhs.GST is payable at 6% on turnover.

GST Audit is applicable for societies with turnover above Rs 2 crores.

Taxable Heads Exempted Heads
 1. Maintenance and Service Charges 1. Property tax
  2. Parking Charges 2. Electricity Supply from MCGM only
  3. Non-Occupancy Charges 3. Water Supply from MCGM Only
  4. Sinking Fund 4. Non-Agricultural Tax
  5. Repair Fund
  6. Share Transfer
  7. Tower or other Rent
  8. Interest or Penalty

Author Bio

Qualification: CA in Job / Business
Company: N/A
Location: MUMBAI, Maharashtra, IN
Member Since: 08 May 2019 | Total Posts: 1

More Under Goods and Services Tax

15 Comments

    1. Anushree Naik says:

      The circular says that Rs.7500 exemption is available only on contributions from members towards third party expenses .So the charges like parking and NOC are not covered for exemption.

  1. I. SUBBARAO says:

    a society having commercial buildings getting rent above 20 lakhs p.a., there is any other income to it. it is expend money which is received from rents on many programmes. The society will get GST?

    1. Anushree Naik says:

      Yes.The society will have to register under GST if the turnover exceeds Rs.20 lakhs.This turnover will include rental income, Contribution from members and FD interest.

  2. AJAY GONDHALE says:

    if membership fees exceed RS.7500. Suppose, Membership fees Rs.10000. On Which amount GST will be quantum 10000 or 2500.

  3. CA Gunjan Shah says:

    23. (1) The following persons shall not be liable to registration, namely:––
    (a) any person engaged exclusively in the business of supplying goods or
    services or both that are not liable to tax or wholly exempt from tax under this Act or
    under the Integrated Goods and Services Tax Act;

    Then as per my understanding even if RWA crosses limit of Rs.20 lakhs it wont be required to obtain registration.

    1. Anushree Naik says:

      RWA are not wholly exempt from tax. They just enjoy exemption up.to Rs.7500 per month per member .
      In case the contributions dont exceed Rs.7500 then they may not register under GST even if the total turnover exceeds Rs.20 lakhs.

  4. Rajnikant Manubhai Patel says:

    In the case of exempt income and taxable income is below 20 lakh, there is no requirement to take registration. Pls. give your views

  5. vswami says:

    INSTANT
    RAndom PIck : “GST Audit is applicable for societies with turnover above Rs 2 crores.”
    That sounds a great escape, to know and breath soundly a sigh of relief, for time being. And, perhaps, looking at the astronomical number specified for the threshold, as is to be readily imagined, for good or bad, no ‘housing society’ , including howsoever the high end one that be, might escape the worrisome hardship/ clutches of ‘GST Audit’.
    But the most fundamental and rudimentary proposition, omitted to even be made a mention of, – Inadvertently or otherwise by the Author, a CA, – is, – whether at all a ‘housing society’ is liable for being roped in , within the net of GST Levy. According to a so-believed well articulated view, founded on logical reasoning, the Answer may have to be better taken, at least for now, as an emphatic “NO”.
    For MORE, if independently care to, and painstakingly look through, for an insightful study and incisive conclusion, helpful clues may be found in the related Aricles displayed on this Website , itself – HERE >
    https://taxguru.in/author/vswami/
    Sl. NOs. 4,5,and 6 are of direct relevance !

  6. N UDAYASIMHA says:

    Kindly give your views on House Building Co-Op
    Societies, who merely take land, convert to sites and
    distribute among members.

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