Registration under the GST

Every supplier (including his agent) who makes a taxable supply i.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turnover in a financial year exceeds the threshold limit of twenty lakh rupees shall be liable to register himself for GST.

Aggregate turnover shall include the aggregate value of all taxable supplies, exempt supplies and exports of goods and/or services and exclude taxes viz. GST

As per this provision, every housing society having receipt above the threshold i.e 20 lakh rupees shall be required to get registered under the GST. Turnover includes the exempted supplies. For example, if a housing society collects the maintenance fees from its member above 20 lakh rupees in a year will be required to get registered for GST, irrespective of the fact the fee is less than five thousand rupees per month per member.

Payment of Goods and Service Tax

Rates Under GST: Service Tax Exemptions to be continued in GST as decided by GST Council for housing societies under the below para.

Service by an unincorporated body or a non-profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –

(a) as a trade union;

(b) for the provision of carrying out any activity which is exempt from the levy of GST; or

(c) up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex; 

is exempt under GST. However, this exemption will not be available for commercial units or societies.

The rate for the GST is 18 %.  E.g., if you charge Rs. 7000/month maintenance for a flat, the total amount to be collected from the Member is [Rs.7000 + 18% of Rs. 7000].

However if the amount charged per flat is less than 5000/month than no GST applicable.

Advantage of Registration under GST

GST provided input credit benefit for all the Goods purchased or services availed by the society i.e. Lift AMC, Housekeeping, Security, Fire AMC, Repairs & Maintenance, Contract staff, Accounting & Auditing Services, Software/ ADDA Portal & other services etc.

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