Why 18% GST on Cooperative Housing Society?
There was no service tax on members contribution towards common expenses in a cooperative housing society. Now that Service Tax is included in GST, there should be no 18%GST on members contribution towards common expenses in a cooperative housing societies. Members pay contribution towards common expenses from their tax paid income, and again charging 18%GST amounts to double taxation.
There is exemption up to 7500 rupees per month per member but every society having a turnover of 20 lakh rupees is required to register for GST. Compliance after registration is resulting in harassment to managing committees and avoidable extra paper work and expenses for filling Returns.
We request PM to advise GST Council to exempt Cooperative Housing Society from GST in the next meeting scheduled on Saturday 22 December 2018. more
here GST has to exempt co op hsg society as purpose is not profit making
On Wednesday, December 19, 2018, 11:12:43 AM GMT+5:30, MOHIT PANDE <email@example.com
> wrote: more
Yes, such co-operative societies must be kept out of the purview of GST. After all these societies are formed and managed by the owners of houses/flats in clusters with the only purpose of maintenance of such houses/flats and not for the purpose of conducting any business/commercial
activities. Inflicting any kind of tax liabilities on such bodies in not only unjustified but illogical as well. more
GST on 3rd and subsequent House/Flat shall be at the maximum % since Land is scares and majority are Houseless still and paying heavy Rents which indeed become the Profits on investments on Housing even through Bank Loans. more
As per the law, GST is only applicable on additional income of the society over and above its expenditure. However, each item of expenditure should be relatable / allocable which is absurd as you need some really intricate accounting. Other income like delayed period interest, parking charges etc are all subject to GST. The anomalies need to be fixed with a workable solution, which can be done if the powers to be care. more
Absolutely agree with Mr. Mohit Pande ji post. more