Cooperatives Law Reform
Maharashtra Chief Minister Shri Devendra Fadnavis has constituted a Panel to study and give suggestions for Cooperatives Law Reforms. I have given following suggestions:-
• A separate Law titled “Maharashtra Cooperative Housing Society Act 2025” is required, as Coop. Hsg. Societies are not business entities like other cooperatives e.g. Cooperative Banks and Cooperative Sugar Factories etc.
• Please consider getting Cooperative Housing Societies unconditional exemption from 18% GST on Member’s monthly contribution towards common expenses exceeding Rs.7500 per month.
• The concept of Mutuality is applicable to Cooperative Housing Societies as they are managed by Members on voluntary basis without any remuneration. A member is not a separate entity from society and he cannot supply any service to himself. This has been confirmed by various HC and SC Orders in various cases.
• It may be mentioned here that there was no Service Tax earlier which is now subsumed in GST.
I request members of this circle to give their suggestions at
cm@maharashtra.gov.in more
• A separate Law titled “Maharashtra Cooperative Housing Society Act 2025” is required, as Coop. Hsg. Societies are not business entities like other cooperatives e.g. Cooperative Banks and Cooperative Sugar Factories etc.
• Please consider getting Cooperative Housing Societies unconditional exemption from 18% GST on Member’s monthly contribution towards common expenses exceeding Rs.7500 per month.
• The concept of Mutuality is applicable to Cooperative Housing Societies as they are managed by Members on voluntary basis without any remuneration. A member is not a separate entity from society and he cannot supply any service to himself. This has been confirmed by various HC and SC Orders in various cases.
• It may be mentioned here that there was no Service Tax earlier which is now subsumed in GST.
I request members of this circle to give their suggestions at
cm@maharashtra.gov.in more
Viewed by 834
View all 8 comments Below 8 comments
Cooperative housing societies have often become personal fiefdoms of a few, who use them to their advantage. Many office bearers dont know the law or care two hoots about it. A housing cooperative is a service provider besides a custodian of the common property. It is supposed to run with the concept of mutuality and common participation. To this, the tax provisions like GST are a spoilsport when the society runs only on member contributions. There seems to be a serious lack of coordination in various laws creating regressive anomalies. The aim must be to make the process simple, remove reservations of obnoxious kinds, ensure that office-bearers are rotated at least in ten years and do not carry on by proxy. There should be some compensation for holding such an office as well to prevent abuse of the position. Audits of societies need to be carried out by proper professionals like CAs or CMA's, and their fee should be realistic. Today, I can say that over 90% of the CHS accounts are sub-standard or have serious bugs in them. There are other laws like land reform, stamp duty, ownership, leave and license norms, taxation which need to be meshed well with cooperative law. Making an utopian document which fails basic implementation is no more than a eyewash of sorts. more
May 22
yes, it is required Issaq+91-9967824422 Â On Thursday, May 15, 2025 at 03:31:13 PM GMT+5:30, MOHIT PANDE wrote: more
May 15
Support Mr. Pande’s suggestion. Only thing further which needs to be suggested is that the grievance addressal bodies like the Jt., Dy Registrars should be lawyers not merely State Service Officers. more
May 15
