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Published on:
March 21, 2023
By
Harshini

GST on Co-operative housing societies or Resident Welfare Associations

Goods and Services Tax (GST) on Co-operative housing societies or Resident Welfare Associations (RWAs) refers to the tax levied on the monthly maintenance charges collected by such societies or associations from their members. Under GST, co-operative housing societies or RWAs with an annual turnover exceeding INR 20 lakhs are required to register under GST and pay tax on the monthly maintenance charges collected from their members. The GST rate applicable to co-operative housing societies or RWAs is 18% as of September 2021.

However, certain exemptions are available to co-operative housing societies or RWAs under GST. They are exempt from paying GST on interest received on investments, and on the services provided by the society to its members up to a threshold limit of INR 7,500 per month per member. Additionally, the supply of services by a RWA to its members for a consideration up to INR 7,500 per month per member is exempted from GST.

Co-operative housing societies or RWAs can also claim input tax credit (ITC) on GST paid on inputs and services, subject to certain conditions. The ITC can be claimed on the GST paid on inputs and services used for providing services to the members, such as maintenance and repair services, security services, or housekeeping services.

It is important for co-operative housing societies or RWAs to understand the GST regulations and comply with the necessary requirements to avoid any penalties or fines. They may consult with a tax expert or a Chartered Accountant to understand the GST regulations and ensure that they comply with the necessary requirements.

Is GST applicable on Cooperative Housing Societies?

Yes, Goods and Services Tax (GST) is applicable on Cooperative Housing Societies. As per the GST Act, Cooperative Housing Societies are required to register under GST if their annual turnover exceeds INR 20 lakhs. Once registered, Cooperative Housing Societies are required to pay GST on the monthly maintenance charges collected from their members at the applicable rate, which is currently 18% as of September 2021.

However, certain exemptions are available to Cooperative Housing Societies under GST. They are exempt from paying GST on interest received on investments, and on the services provided by the society to its members up to a threshold limit of INR 7,500 per month per member. Additionally, the supply of services by a RWA to its members for a consideration up to INR 7,500 per month per member is exempted from GST.

Can co-operative housing societies or RWAs claim input tax credit (ITC) on GST paid on inputs and services?

Yes, co-operative housing societies or Resident Welfare Associations (RWAs) registered under GST can claim input tax credit (ITC) on GST paid on inputs and services subject to certain conditions. The ITC can be claimed on the GST paid on inputs and services used for providing services to the members, such as maintenance and repair services, security services, or housekeeping services.

To claim ITC under GST, co-operative housing societies or RWAs must ensure that the supplier of goods or services has issued a tax invoice, and the taxes charged on such invoice have been paid to the government. They should also ensure that the goods or services for which they are claiming ITC have been used for providing services to the members.

GST Compliance Obligations on Cooperative Housing Society

Cooperative Housing Societies in India are required to comply with the following GST compliance obligations:

1. Registration under GST: Cooperative Housing Societies with an annual turnover exceeding INR 20 lakhs are required to register under GST. The registration can be done online on the GST portal. Once registered, the society is allotted a unique GST identification number (GSTIN).

2. Filing of GST Returns: Cooperative Housing Societies are required to file monthly or quarterly GST returns, depending on their annual turnover. The GSTR-3B return is required to be filed monthly, while the GSTR-1 and GSTR-4 returns are required to be filed quarterly. The due dates for filing the returns can be found on the GST portal.

3. Payment of GST: Cooperative Housing Societies are required to pay GST on the monthly maintenance charges collected from their members at the applicable rate, which is currently 18% as of September 2021. The payment of GST is done through the GST portal.

4. Maintenance of GST records: Cooperative Housing Societies are required to maintain records of all transactions related to GST, such as invoices, receipts, and payment records. These records should be maintained for at least six years from the end of the financial year.

5. Reconciliation of GST data: Cooperative Housing Societies are required to reconcile their GST data with the data provided by their members, such as the amount of maintenance charges paid by them, and the GST paid on such charges. Any discrepancies should be rectified and reported to the GST authorities.

It is important for Cooperative Housing Societies to comply with the GST regulations to avoid any penalties or fines. They may consult with a tax expert or a Chartered Accountant to understand the GST regulations and ensure that they comply with the necessary requirements.

FAQs

Q: Are co-operative housing societies or RWAs required to register under GST?

A: As per the GST Act, co-operative housing societies or RWAs are not required to register under GST if their annual turnover does not exceed INR 20 lakhs. However, if their annual turnover exceeds INR 20 lakhs, they are required to register under GST and comply with the necessary regulations.

Q: What is the GST rate applicable to co-operative housing societies or RWAs?

A: As of September 2021, the GST rate applicable to co-operative housing societies or RWAs is 18% on the monthly maintenance charges collected from its members.

Q: Are there any exemptions available to co-operative housing societies or RWAs under GST?

A: Yes, certain exemptions are available to co-operative housing societies or RWAs under GST. They are exempt from paying GST on interest received on investments, and on the services provided by the society to its members up to a threshold limit of INR 7,500 per month per member. Additionally, the supply of services by a RWA to its members for a consideration up to INR 7,500 per month per member is exempted from GST.

Q: Can co-operative housing societies or RWAs claim input tax credit (ITC) on GST paid on inputs and services?

A: Yes, co-operative housing societies or RWAs can claim input tax credit (ITC) on GST paid on inputs and services, subject to certain conditions. The ITC can be claimed on the GST paid on inputs and services used for providing services to the members, such as maintenance and repair services, security services, or housekeeping services.

Q: What is the procedure for registration under GST for co-operative housing societies or RWAs?

A: Co-operative housing societies or RWAs can register under GST by visiting the official GST portal and completing the necessary registration formalities, including providing their PAN and other details. It is important to note that registration is mandatory if their annual turnover exceeds INR 20 lakhs.

It is advisable for co-operative housing societies or RWAs to consult with a tax expert or a Chartered Accountant to understand the GST regulations and ensure that they comply with the necessary requirements.

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