A Co-op Hsg Society is required to be registered under GST if the Aggregate turnover exceeds Rs 20 lakhs annually. Aggregate turnover shall include all taxable and exempt services. Aggregate turnover means all billing other than Municipal Tax & Sinking Fund, but includes Interest received from banks, and members.
If the Society has to pay GST under Reverse Charge [ Supply of services by Advocates ], irrespective of the turnover, the Society has to Register under GST.
If the maintenance charges towards reimbursement of charges/contributions are less than Rs 5000/- per month GST will not be charged to such members. However, such members will be charged GST on Vehicle parking charges, Non –occupancy charges, Facility booking, Share Transfer premium etc. which are not of the kind of contributions or reimbursement of charges.
If the maintenance charges towards reimbursement of charges/contributions exceed Rs 5000/- per month, GST will be charged. [ provided the aggregate turnover is more than Rs 20 Lakhs annually. ]
Reverse Charge: If the Society receives any supply of services from Advocates/firm of advocates, the society has to register under GST and pay the GST under Reverse In case of a Society registered under GST, the GST shall be paid on Inward Supply of goods/services by an Unregistered Vendor under Reverse charge.
Taxation on Bills raised on members.
- Municipal Tax: is covered under Services provided by the Society to its members as an Agent of the Service Recipient and thus, outside the provisions of GST. However, an exact amount of Municipal Tax is required to be recovered from members as paid to BMC.
- Sinking fund: is covered under Deposits without any provision of supply of service and thus, is outside the provisions of GST. However, on the utilization of the Sinking Fund, it will become Taxable and Tax has to be paid.
- Water Charges: Water is procured by the Society from the Municipal Corporation and is supplied to the members. Water is a “goods” and attracts “zero “ rate of tax.
· All other charges, including electricity, repair fund, maintenance charges, service charges, vehicle parking charges, non-occupancy charges, any other recovery of expenditure, etc are taxable under the category “Services provided by other membership organizations n.e.c.” under SAC number “999599”
· Interest/ penalty on delayed payment of maintenance charges is taxable under GST.
· Advance Received from members, if any, towards the maintenance charges, is taxable under GST, adjustable against GST payable on raising of monthly/ quarterly bill.
Taxation on other Income [ from members or non-members]
· Interest earned from banks is “Exempt” from GST.
· Rent received from any Hoarding / Cell phone tower etc is taxable under the categories:-
997211: Rental or Leasing Services involving own or leased residential property.
997212: Rental or Leasing Services involving own or leased non- residential property.
(iii) All other incomes and receipts such as
Facility booking charges
Fit out charges
Reimbursement of Expenditure
Share Transfer premium
Membership Entrance Fee / Share Transfer fee
Exhibition in the Society premises etc.
Security Deposits: All refundable security deposits are outside the provisions of GST.
Input Tax Credit :
· All the GST paid on inward supply either for services or for goods, can be set off against liability to pay GST by the Society. However,
· In case of capital goods procurement, [ Fixed Assets ], the Input Tax Credit can be availed equally spread over five years.
· If the society is availing the benefit of Exemption, then proportionate Input Tax Credit as is attributable to exempted services will not be available for Input Tax Credit.