Provisions under GST Law in respect of Housing Societies

GST or the Goods and Services Tax is a comprehensive tax that has been levied on all goods and services provided in India. Housing Societies are no exception to this, and they too have to comply with the provisions of GST law. In this article, we will discuss the provisions under GST law in respect of Housing Societies.

What is a Housing Society?

A Housing Society is a group of individuals who come together to form a society for the purpose of owning, maintaining and managing a residential property. These societies are usually registered under the Cooperative Societies Act of the respective state.

Provisions under GST Law for Housing Societies

Under GST law, Housing Societies are considered as unincorporated entities. As per the GST law, any unincorporated entity that provides services of more than Rs. 20 lakhs in a financial year is required to register for GST. This means that Housing Societies that are providing services of more than Rs. 20 lakhs in a financial year need to register for GST.

Registration under GST

Step 1: The Housing Society needs to obtain a PAN card, as it is mandatory to have a PAN card for GST registration.

Step 2: The Housing Society needs to obtain a Unique Identity Number (UIN) from the GST portal. This number is issued to the society upon successful registration. This UIN number is mandatory for all invoices generated by the Housing Society.

Step 3: The Housing Society needs to file an application for GST registration on the GST portal. The application needs to be submitted along with the required documents, such as PAN card, proof of address, bank account details, etc.

Step 4: Once the application is submitted, the Housing Society will receive an Application Reference Number (ARN) on the registered mobile number and email address.

Step 5: The GST officer will verify the application and documents submitted. If the application is approved, the Housing Society will receive the GST registration certificate within 3-7 working days.

GST Rates for Housing Societies

The GST rates for Housing Societies are as follows:

For services provided by the Housing Society to its members, the GST rate is nil.
For services provided by the Housing Society to non-members, the GST rate is 18%.

Input Tax Credit

Input Tax Credit (ITC) is the credit that is available to the Housing Society for the tax paid on the goods and services used in the course of business. The Housing Society can claim ITC on the GST paid on goods and services used for providing taxable services to its members and non-members.

GST Returns

The Housing Society needs to file GST returns on a monthly or quarterly basis, depending on its turnover. The returns need to be filed on the GST portal. The returns need to be filed even if there is no business activity during the period for which the return is being filed.

Conclusion

Thus, Housing Societies are required to comply with the provisions of GST law. They need to register for GST, file GST returns and pay GST as per the provisions of the law. As the GST law is still evolving, it is advisable for Housing Societies to consult a tax expert to understand the provisions of the law and comply with them.