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The term “co-operative housing society” refers to a legal entity that is made in accordance with state co-op rules. Section 2(16) of the Maharashtra Co-operative Society Act, 1960, says that housing societies are groups whose main goal is to give members open plots for housing, dwelling houses, or flats, or, if these properties have already been bought, to give members common services and amenities. These are the people who live in a particular neighborhood. Together, they would help members in many ways, such as by collecting and sending in statutory dues, keeping the building in good shape and making sure it is safe, and so on. This article will talk about all the ideas behind GST and how it affects co-operative housing societies.
Is GST applicable on Cooperative Housing Societies?
Society can be thought of as a group of people with similar interests, like how a club is made up of its members. Then, the question is whether or not the services a Housing Society gives to its members can be compared to those a person gives. The right answer is “yes.
Understand the GST applicability on Cooperative Housing Society
It is on the provision of goods and services that GST is levied, as per Section 9 of the CGST Act, 2017. All kinds of provision of products or services or both made or agreed to be made for a consideration by a person in the course or furtherance of business, including the sale, transfer, barter, exchange, license, rental, lease, or disposal (as defined in Section 7);
A co-operative society that has been registered under legislation pertaining to co-operative societies is considered a “person” for the purposes of the CGST Act, 2017 because of Section 2(84)(i). Accordingly, the CGST Act considers a registered co-operative society to be a “person.”
GST Compliance Obligations on Cooperative Housing Society
A housing society must apply for GST Registration under Section 22 of the CGST Act, 2017 if its annual revenue is more than 20 lakhs. Nevertheless, registering does not obligate the housing society to include GST in the monthly maintenance fees charged to members. Because, a housing society may become GST-registered in light of the provision in bove; nevertheless, if the monthly contribution received from members is less than Rs.7,500/ – (and the amount is for the purpose of sourcing of goods and services from a third person for the common use of its members), the society is not required to include GST in the monthly bill raised to its members. Nonetheless, if the monthly payment is more than Rs. 7,500/ -, GST will be imposed.
It is important to note that if a housing society is a non-profit registered entity, clause (b) of the above allowances allows housing societies to be excluded from the levy of GST for the provision of carrying out any activity which is excluded from the levy of Goods and service Tax; and property tax and electricity are exempt from the levy of GST. Therefore, the Rs. 7,500/- limit would not include costs collected by the society for things like property tax, electricity taxes, and other legal levies.
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Tag : GST Filing, GST Registration, TDS Filing