1. Applicability of GST on Co-Operative Housing Societies

There are lot of societies which believe that GST is not applicable in such cases. However, it is not true. Under section 2 (17) (e) of CGST Act 2017, provision by a club, association, society or any such body of the facilities or benefits to its members is deemed to be a business.

Resultantly, activity of housing society would attract the levy of GST and housing society would be required to register if the turnover is over 20 lakh threshold limit. However, there are few exemptions for housing societies, such as:

1. trade union

2. carrying out any activity which is exempt from GST

3. up to Rs.5,000 per month per member for sourcing of goods or services from a 3rd person for common use

2. Applicability of GST on Charges Collected

1. GST will be applicable on the amount in excess of Rs. 5,000.

2. GST will not be levied on property tax, water tax, non-agricultural tax, electricity charges as per exemption notification as referred above.

3. GST will be levied on repairs & maintenance fund, car parking charges, non-occupancy charges, simple interest for late payment or any other type of charges as these are collected for supply of services.

If turnover of the society is less than Rs. 20 lakhs or even if the turnover exceeds Rs.

20 lakhs but the monthly contribution of individual members towards maintenance is less than Rs. 5,000 and society is not providing any other taxable services to members or outsiders, then the society need not take registration under GST.