GST and housing societies

GST, a very common term these days,isn’t it? Yes, with our new taxing system, GST or Goods and Services Tax is now applicable in almost every chargeable things.

So, is GST chargeable for housing societies as well? To answer this question,Government has laid out various rules that determines when GST is applicable for housing societies.

Here we are jotting down the important regulations in fairly simply language for easy understanding;

Any housing society that is collecting revenue over 20 lakh per annum, has to get a GST registration. Therefore smaller societies who with less than 20 lakh revenue are exempted from GST.

Societies where the individual member contribution per month is more than 5000 INR, it will attract GST on the monthly bill.

***It is important to note that societies whose revenue is less than 20 lakh per annum will be exempted from GST even if the member contribution is more than 5000.

Services that are provided by Central Government, State Government, Union territory or local authority to person but not business entity are exempted from GST. Therefore taxes like property tax, water tax even if collected by society on behalf of the authority, they are exempted from GST.

Taxes like Non-Agricultural tax, electricity charges are exempted from GST only when they are collected from individual society members. However taxes for the service to the society as a whole, like tax of serving electricity or water will attract GST as housing society is regarded as a business entity.

Other charges of the maintenance bill that will attract GST are Sinking funds, repairs and maintenance fund, car parking charges, non-occupancy charges and simple interest for late payment collected by the society.
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