Impact of GST on Co-operative housing societies

Co-operative housing societies is a collective body of persons, who stay in a residential society and would be supplying certain services to its members, be it collecting statutory dues from its members and remitting to statutory authorities, maintenance of the building, security etc.

As per section 2(17)(e) of the CGST Act, 2017  club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members is deemed to be a business.

The activities of the housing society would thus attract the levy of GST and the housing society would be required to register and comply with the GST Law.

Registration:

Supply of services by any person is liable to GST even if it is a non-profit or co-operative society. The activity of the society is considered as in the course or furtherance of business. Section 22 (1) of CGST Act states that every supplier of services shall be liable to registered under this Act if his Aggregate turnover in a financial year exceeds Rs. 20 lakh.

Exemption:

Exemption Notification dated 28.06.2017 at sr.no.77 provides for the following exemption to housing societies:

 

GST Audit is applicable for societies with turnover above Rs 2 crores.