Question9: Whether
Co-operative Group Housing Society is liable for registration under GST ' And
Also Whether the Rental Income on Installation of Tower and Maintenance Charges
Collected from the their members by Co-operative Group Housing Society to be
charged wih GST ' The Total Receipts of the Co-operative Group Housing Society
i.e. in the Final Year 2016-17 were more than Rs. 20 Lakhs.
Answer: (A) As per provisions of Section 7(1)(a) of CGST Act, 2017 all
forms of supply of goods or services or both such as sale, transfer, barter,
exchange, licence, rental, lease, or disposal made or agreed to be made for a
consideration by a person in the course of furtherance of business will be
termed as supply under GST regime and would be taxable. Further, as per
provisions of Section 22 of the CGST Act, 2017 every supplier having aggregate
Turnover exceeding Rs. 20 lakh in a financial year is required to be registered
under GST The said limit is Rs. 10 lakh in special category States. Accordingly,
a Group Housing Society having aggregate turn over exceeding Rs. 20 lakh in a
financial year is required to be registered under GST and pay applicable taxes.
(B) Maintenance charges collected upto a limit of Rs. 5000/- per member whether
total turnover is below or above Rs. 20 lakh, then GST is not applicable. In
case total turn over is below Rs. 20 lakh but collection from individual member
is more than Rs. 5000/- per month then also GST is not applicable.
(C) As informed by you, your total turnover being over Rs. 20 lakh, it is
assumed that income earned from rents of towers installed is also included in
the turn over, hence GST is applicable. GST is payable (Reply dt. 30/11/2017)