TMI BlogGST on Co-operative Housing SocietiesX X X X Extracts X X X X X X X X Extracts X X X X ..... dy, they would be supplying certain services to its members, be it collecting statutory dues from its members and remitting to statutory authorities, maintenance of the building, security etc. Co-operative Housing Societies whether amenable to levy of GST A Society is akin to a club, which is composed of its members. So, can a service provided by a Housing Society to its members be treated as service provided by one person to another. The answer is yes. The following extracts of the GST law will make the position clear. As per Section 9 of CGST Act, 2017, levy of GST is on supply of goods and services. As per Section 7 expression supply includes (a) all forms of supply of goods or services or both such as sale, transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities. Thus, as per section 2(17)(e) of the CGST Act, 2017 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 is deemed to be a business. The activities of the housing society would thus attract the levy of GST and the housing society would be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable if the monthly contribution exceeds ₹ 5, 000/-. Certain statutory dues such as property tax, electricity charges etc. form part of the monthly maintenance bill raised by the society on its members. The question would arise whether such charges should be included while computing the monthly limit of ₹ 5000/- in terms of clause (c) of sr.no.77 of notification 12/2017 -Central Tax (Rate) dated 28.06.2017. As per clause (b) of the above exemption, exemption is available to housing societies for provision of carrying out any activity which is exempt from the levy of Goods and Services Tax assuming that a housing society is a non-profit registered entity; and property tax and electricity is exempt from the levy of GST. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Central Government, State Government, Union territory or local authority to a person other than business entity, is exempted from GST. So, Property Tax, Water Tax, if collected by the RWA/Co-operative Society on behalf of the MCGM from individual flat owners, then GST is not leviable. 2. Similarly, GST is not leviable on Non-Agricultural Tax, Electricity Charges etc, which are collected under other statutes from individual flat owners. However, if these 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. 3. Sinking fund, repairs maintenance fund, car parki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a registered non- profit entity) to its own members by way of reimbursement of charges or share of contribution up to an amount of five thousand rupees per month per member for providing services and goods for the common use of its members in a housing society or a residential complex are exempt from GST. Further, if the aggregate turnover of such RWA is up to ₹ 20 Lakh in a financial year, then such supplies would be exempted from GST even if charges per member are more than Rs. Five thousand. RWA shall be required to pay GST on monthly subscription/contribution charged from its members if such subscription is more than ₹ 5000 per member and the annual turnover of RWA by way of supplying of services and goods is also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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