GST on Cooperative Housing Societies is Unconstitutional
Section 2(17) of the CGST Act:
““business” includes–
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
As per the CGST Act, since, services are provided by Cooperative Housing Society to its members against the consideration, named as ‘society charges’ is in the course or furtherance of business, therefore, the activities carried out would amount to supply in terms of Section 7(1)(a) of the CGST Act, and the same would be liable for GST subject to the condition that the monthly subscription / contribution charged by the society from its members is more than ₹ 7500/- per month per member and the annual aggregate turnover of the society by way of supplying of services and goods is also ₹ 20 lakhs or more.
This provision in CGST Act is unconstitutional as it discriminates between members of Cooperative housing societies based on the Annual Aggregate Turnover (AAT).
If AAT is less than Rs.20 lakhs then members of Cooperative Housing Society are exempt from GST even if their monthly contribution is more than Rs.7500 per month per member.
An occupant of a stand alone house or a bungalow or a multi storied building, whose monthly maintenance expenses are more than Rs.7500 need not pay GST.
Article 14 of the Indian Constitution provides "Equality before law". It means that among equals the law should be equal and should be equally administered, that like should be treated alike.
Therefore levy of 18% GST selectively on some members of Cooperative Housing Societies is injustice and discrimination between citizens by government and is unconstitutional.
We request Local Circles to take up this issue with Finance Minister and GST Council to treat all citizens equally and exempt Cooperative Housing Societies from 18% GST. It is to be noted that there was no Service Tax on contributions of members in cooperative housing societies. Now service tax is included in GST so there should be no GST on Cooperative Housing Societies.
The Section 2(17)(e) of CGST Act should be deleted. more
““business” includes–
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
As per the CGST Act, since, services are provided by Cooperative Housing Society to its members against the consideration, named as ‘society charges’ is in the course or furtherance of business, therefore, the activities carried out would amount to supply in terms of Section 7(1)(a) of the CGST Act, and the same would be liable for GST subject to the condition that the monthly subscription / contribution charged by the society from its members is more than ₹ 7500/- per month per member and the annual aggregate turnover of the society by way of supplying of services and goods is also ₹ 20 lakhs or more.
This provision in CGST Act is unconstitutional as it discriminates between members of Cooperative housing societies based on the Annual Aggregate Turnover (AAT).
If AAT is less than Rs.20 lakhs then members of Cooperative Housing Society are exempt from GST even if their monthly contribution is more than Rs.7500 per month per member.
An occupant of a stand alone house or a bungalow or a multi storied building, whose monthly maintenance expenses are more than Rs.7500 need not pay GST.
Article 14 of the Indian Constitution provides "Equality before law". It means that among equals the law should be equal and should be equally administered, that like should be treated alike.
Therefore levy of 18% GST selectively on some members of Cooperative Housing Societies is injustice and discrimination between citizens by government and is unconstitutional.
We request Local Circles to take up this issue with Finance Minister and GST Council to treat all citizens equally and exempt Cooperative Housing Societies from 18% GST. It is to be noted that there was no Service Tax on contributions of members in cooperative housing societies. Now service tax is included in GST so there should be no GST on Cooperative Housing Societies.
The Section 2(17)(e) of CGST Act should be deleted. more
Viewed by 505
Absolutely agree with Mr. Pande. Manager of Local Circles, please take this up urgently and refund us the money as taken against GST for so many years just as you tax us retrospectively for municipal taxes! more
Dec 06
CHS is a body which hires the persons /agencies to render the services to its members. It's members contribution is by & large a reimbursement of such expenditure. Hence it can not be subject to GST. more
Dec 04
The basic objective of society IS NOT TO OFFER SERVICE. We all must engage some Senior, experienced & learned Advocate who can draft & present views on behalf of all registered societies in India. more
Dec 03
