Applicability:
- 18% GST: Housing societies are liable to charge 18% GST on the following:
- Maintenance charges exceeding ₹7,500 per month per member.
- Parking charges, non-occupancy charges, and other charges collected from members, irrespective of the amount.
Exemptions:
- Maintenance Charges: Up to ₹7,500 per month per member are exempt.
- Sinking Fund: Contributions to the sinking fund are exempt.
- Municipal Taxes: Municipal taxes collected and paid to the authorities are exempt.
Input Tax Credit (ITC):
Eligible ITC: Societies can claim ITC on GST paid on goods/services used for:
- Maintenance and repair of common areas.
- Security services, housekeeping, gardening, etc.
- Purchase of goods like cleaning supplies, electricity, etc.
Proportionate Reversal: If a society has both taxable and exempt supplies (e.g., maintenance charges above and below the exemption limit), it must reverse a proportionate amount of ITC attributable to the exempt supplies. This is calculated based on the ratio of exempt turnover to total turnover.
GST Registration Threshold:
- ₹20 Lakhs (₹10 Lakhs for Special Category States): Societies must register under GST if their annual turnover (aggregate of all charges collected) exceeds this limit.
- Voluntary Registration: Societies below the threshold can voluntarily register to avail ITC benefits.
Compliance:
- GST Returns: Registered societies must file GSTR-3B monthly or quarterly, depending on their turnover.
- Annual Return: GSTR-9 must be filed annually.
- Record Maintenance: Proper records of income, expenses, invoices, etc., must be maintained for a minimum of 6 years.
Additional Considerations:
- Non-Resident Members: GST is applicable on maintenance charges paid by non-resident members.
- Commercial Units: Maintenance charges for commercial units are always taxable at 18%, regardless of the amount.
- Penalty for Non-Compliance: Non-compliance with GST regulations can attract penalties and interest.
Disclaimer: This information is for general guidance only. It is advisable to consult a tax professional for specific queries or complex situations.
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