GST On Co-operative Housing Society
Meaning of Co-operative Housing Society
An apartment building or a group of residences owned by a corporation, the stockholders of which are the residents of the residences. Society is operated day today activities , making expense , by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate. Cooperative housing typically shares the costs of upkeep, maintenance and shared amenities across all of its membership.
GST Registration for Co-operative Housing Society
GST is applicable on Supply. Concept of Supply has been defined u/s 7(1) of CGST Act which includes all forms of supply of goods or services. Hence on event of following two conditions GST Registration is applicable to society.
- 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.
- Where society is required to pay GST under Reverse Charge Mechanism.
GST Not Applicable On
GST is not applicable on municipal tax, property tax, water bill, non-agricultural land tax, etc. Even sinking fund is excluded as it is a fund for future. However, repair fund attracts 18% levy.
GST Rate on Co-Operative Housing Society
Reverse Charge Provisions For Co-operative Housing Society
When tax is payable under reverse charge basis, the exemption available to small taxable persons (20 or 10 lakhs) is not available. GST Registered Societies receiving goods or services from unregistered persons are liable to be pay GST on reverse charge basis and maintain record.
Payment of GST payable in RCM need to paid under Cash mode. Hence not able to use existing Input tax credit.
Example : – Society A which is registered under GST is receiving Security services from Company B of say Rs. 10000/- Per month and Company B not registered under GST. In this case Society A need to Pay GST at applicable rate , maintain record and take credit of taxes paid.
Full Input Tax Credit Allowed
Input tax is a tax imposed on the person when he receives supply of goods & services. 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.
Impact of GST on Cash flow of Society
- Under time of supply provisions , advance received made taxable , GST payment arises on advance taken.
- On Services or goods taken from unregistered person in that case society need to pay GST and take credit. This make extra compliance and blockage of funds of society.
GST Return filing for Co-Operative Society ( Total 37 Returns in a year )
- GST registration holder would have to file GSTR-1 (details of outward supplies) on the 10th of each month.
- GSTR-2 (details of inward supplies) on the 15th of each month and
- GSTR-3 (monthly return) on the 20th of each month.
- Finally, annual GST return must be filed by all GST registered entities on/before the 31st of December.
GST Payment Due Date for Co-Operative Society
On or before 20th of Each month for the tax liability of the previous month. GST need to paid after adjustment of input tax credit.
GST Invoice Format for Co-operative Society