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|