Whether Cooperative Society is liable for registration under GST?
Krishna Mohan
When the aggregate turnover of a Cooperative Soc in a financial year exceeds twenty lakh rupees, such Cooperative Soc become liable for Registration under GST as per Sec 22. (1) of CGST Act. That means the collection of money maintenance charges by society exceeds Rs 20 Lakhs per annum then the Society need to be Registered.
It means that if the aggregate turnover (total receipts) of the Housing Societies which generally includes society maintenance charges from its members, receipts from investments, income receipts from advertisement board, receipts from mobile towers in premises, Share transfer fee from members, receipts from special purpose use of common area by member (marriage function etc) etc. Housing Society is liable to register if total of all the receipts (including exempted receipts) exceeds Rs. 20 Lakh in a financial year.
Thus Co-operative Housing Society or Residential Welfare Association who’s Turnover (collection money) crosses Rs 20 Lakhs per annum become liable for Registration under GST and should charge GST (CGST + SGST) from its members.
Further, if the aggregate turnover of such Housing Society/ Residential Welfare Association is up to Rs 20 lakh in a financial year, then such supplies would be exempted from GST even if charges per member are more than Rs 5,000.
A Housing Society / Residential Welfare Association shall be required to pay GST on monthly subscription / contribution charged from its members if such subscription is more than Rs 5,000 per member and the annual turnover of Residential Welfare Association by way of supply of services and goods is also Rs 20 lakh or more.