A Comprehensive guide to GST for Housing Societies

09
Jun

Goods & Services Tax (GST) is now a unified indirect tax for the whole nation. GST is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

 

I] GST would replace the following taxes currently levied and collected by the Centre: 

a) Central Excise Duty; 

b) Duties of Excise (Medicinal and Toilet Preparations); 

c) Additional Duties of Excise (Goods of Special Importance); d) Additional Duties of Excise (Textiles and Textile Products); 

e) Additional Duties of Customs (commonly known as CVD); 

f) Special Additional Duty of Customs (SAD); 

g) Service Tax; 

h) Cesses and surcharges in so far as they relate to supply of goods or services.

 

II] State taxes that would be subsumed within the GST are: 

a) State VAT.

b) Central Sales Tax. 

c) Purchase Tax. 

d) Luxury Tax.

e) Entry Tax (All forms).

f) Entertainment Tax (except those levied by the local bodies).

g) Taxes on advertisements.

h) Taxes on lotteries, betting and gambling.

i) State cesses and surcharges insofar as they relate to supply of goods or services.

India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes through appropriate legislation. GST would also have a dual structure which can be explained as follows:

 

*IGST is for inter-state supply of Goods and services

 

GST on Housing Societies –

GST is applicable to the dealer-person who is rendering the service or supplying the goods in its regular course of business activity.

Cooperative housing societies are covered under GST, because it is covered under definition of Person & Business Activity under the Act  

 

Registration

Threshold Limit – 20Lakhs: Every supplier (including his agent) who makes a taxable supply i.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turn over in a financial year exceeds the threshold limit of twenty lakh rupees shall be liable to register himself in the State or the Union territory from where supplier makes the taxable supply.

 

Threshold Limit – 10Lakhs: In case of eleven special category states (as mentioned in Art.279A(4)(g) of the Constitution of India), which are states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand this threshold limit for registration liability is ten lakh rupees.

 

Aggregate Turnover- 

“aggregate turnover” includes the aggregate value of:

(i) all taxable supplies. 

(ii) all exempt supplies.

(iii) exports of goods and/or service.

(iv) all inter-state supplies of a person having the same PAN.

 

Time Limit for Registration under GST:

Within thirty days from the date on which supplier becomes liable to registration, in such manner and subject to such conditions as is prescribed under the Registration Rules.

 

Applicability of GST

 

Below mentioned table simplifies applicability of GST on Cooperative Housing Societies.

 

 

Rate of Tax:

 

The following are the rate of GST applicable in case of Cooperative Housing Society

 

Source: CBSE Website

 

GST is payable on consideration, which has been defined under section 2(31) of the CGST and state law has been requested to follow and align their laws in line with CGST. Thus, it is assumed at this moment that it will be the same. Consideration includes not only amount receivable for an activity but also a monetary consideration for agreeing to refrain from an activity.

 

However, it’s provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply. That means on deposit there will be no GST unless supply and/or service is made against that deposit.

 

Payment date

Payment of taxes by the normal tax payer is to be done on monthly basis by the 20th of the succeeding month. Cash payments will be first deposited in the Cash Ledger and the tax payer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return. As mentioned earlier, payment can also be debited from the Credit Ledger. Payment of taxes for the month of March shall be paid by the 20th of April. Composition tax payers will need to pay tax on quarterly basis.

 

Input Tax credit

Tax payers shall be allowed to take credit of taxes paid on inputs (input tax credit) and utilize the same for payment of output tax. However, no input tax credit on account of CGST shall be utilized towards payment of SGST and vice versa. The credit of IGST would be permitted to be utilized for payment of IGST, CGST and SGST in that order

No Tax credit would be available where GST is not applicable on expenses like Electricity expenses, Stamp Duty , Property Taxes etc. 

 

Filing of Return

Under GST, all dealers including a Society will have to file 3 returns in a month for each and every transaction on the billing side on 10th of following month and on expenses side on 15th of following month and consolidated return on 20th of following month and an Annual Return has to be filled. Thus in all 37 returns will have to be filled.

Other than these, if they deduct TDS then they will have to also filed GSTR-7 by 10th of the following month.

 

However, certain societies may fall under quarterly return if they have opted for Composition Scheme by forfeiting all the Credit on expenses and willing to pay tax on receipts. Composition Scheme is not dealt with over here as it requires a separate approach.

 

 

By Apeksha Pandya
  •  
  •  
  •  
  •  
  •  
5.00 Your Rating
(0) Comments
Post Comments

Leave your Comments




Featured Posts

How to Add new Fixed Assets? ..

Please find the below step to add new fixed assets:-  A. Create GL Account Step 1:- Go to Acc...

How to Create GL Account? ..

Please follow the below step to create / Add GL account:-  Step 1:- Go to Settings Step...

How to raise a Complaint for ..

Please find below steps for Log a Complaint:- Step 1:- Go to Home Page Step 2:- Click on Complaint...

How to send Others SMS? ..

Please find below steps for sending sms notification to the members:- Step 1:- Go to Home Page St...

How to send Email Notificati ..

Please find below steps to send the email notification to the members:- Step 1:- Go to Home Page ...

How to Create Events for Res ..

Please find below steps for creating Event:- Step 1:- Go to Events Button Step 2:- Click on ...

How to Upload Photos ? ..

Please find below steps for upload photos:- Step 1:- Go to Album Tab Step 2:- Click on Create Alb...

How to Create Polling Booth? ..

Please find below steps to create a poll:- Step 1 :- Go to Forum Tab Step 2:- Click on Pooli...

How to Create Notice and Cir ..

Please find below steps for creating Notice and Circulars:- Step 1:-  Go to Forum Tab Step 2...

How to create Forums? ..

Please find below steps for creating forum:- Step 1:- Go to Home Page  Step 2:- Click on...

How do I update emergency co ..

Please find below steps for update emergency contact :- A) Add Emergency Contact Number:- Ste...

How to set Member due remind ..

Please find below steps for FD maturity reminder, Nominees reminder or Member due reminder:-  ...

How do I get vacant flat rep ..

Please follow the below step to get the vacant report:-  Step 1:- Login into the societynmore....

How to raise Supplementary b ..

Please find below steps to raise Supplementary bill Or Debit note Or Adhoc invoice to the membe...

How to pass a credit note or ..

Please find below steps to passing credit note or advance payment to the member:-   Credit no...

How to do bulk upload of cre ..

Please find below steps to do the bulk upload of Credit note / Excel upload of credit note:- Step 1...

How to set up parking charge ..

Please follow the below step update parking details:-  A.Setup Charges for parking:- Step 1:-...

How to upload bulk receipt e ..

Please find below steps to upload bulk receipt entry:-   A) Download Payment excel Step 1: -...

How to update Bank details? ..

Please follow the below step to update the bank details:-  Step 1:- Go to the Home Page Step...

How to update Property detai ..

Please follow the below step to update property details:-  Step 1:- Go to the Home Page Step...

How to pass a receipt or pay ..

Please find below step to pass a receipt/payment entry:- Step 1:- Go to the Billing Button S...

How to Edit or correct the p ..

Please find below step for Edit/correct the payment details in posted receipts/payments:- Step...

How to Edit Or correct the p ..

Please find below step for Edit/Correct the posted invoice:- Step 1:- Go to the Billing Button St...

How to start forum or activi ..

Please follow the below step for starting the topic:-  Step 1:- Go to the Home Page Step 2:- ...

How to create forum group? ..

Please find the below step to create a forum subgroup:-  Step 1:- Go to the Home Page Step 2...

How to change a profile pict ..

Please find the below step to change/update profile picture:-  Step 1:- Go to the Home Page S...

How to view the employee lis ..

Please find the below step to view the employee list:- Step 1:- Go to the Home Page Step 2:- Clic...

How to print all Receipt in ..

Please find below steps to print bulk receipts:- Step 1:- Go to the Billing Button Step 2:- Manag...

How to print the Maintenance ..

Please find below step to get a print out of Maintenance invoice:- Step 1:- Go to the Billing Butto...

How to get interest calculat ..

Please find below steps to get Interest calculation report:- Step 1:- Go to the Billing Button St...

How to cancel a facility boo ..

Please follow the below step to cancel a facility booking:-  Step 1:- Go to the Homepage Step...

How to get invoice report? ..

Please find below steps to get Invoice report:- Step 1:- Go to the Billing Button Step 2:- Click o...

How can user book the facili ..

Please follow the below step to book a facility:-  Step 1:- Go to the Home tab Step 2:- Click...

How to get supplementary bil ..

Please find below steps to get Supplementary bill report:- Step 1:- Go to the Billing Button Step ...

How to get cheque deposit sl ..

Please find below step to get Cheque deposit slip / Pay slip list:- Step 1:- Go to the Billing Butt...

How to set up facility? ..

Please follow the below step to add / setup facility:- (Admin can do the facility setup) A. Add Fac...

How to get Receipt report? ..

Please find below steps to get Receipt report:- Step 1:-Go to the Billing Button Step 2:- Click on...

How to Add or join member in ..

Please follow the below step to add a member to the system/portal:-   Step 1:- Go to the ...

How to get report of payment ..

Please find below step to get Report of payment gateway transaction Step 1:- Go to the Billing Butt...

How to get members due summa ..

Please find below steps to find out Members due summary report Step 1:-Go to the Billing Button St...

How to get members bill due ..

Please find below steps for Members Bill due report:- Step 1:- Go to the Billing Button Step 2:- C...

How to add Office Staff and ..

Please find the below step to add office staff/employee and give him access:- A.Create a Type (Mana...

How to change or upload the ..

Please follow the below step to update the Banner:-  Step 1:- Go to the Home Button Step 2:- ...

How to set up society profil ..

Please follow the below step to set up a profile page:- Step 1:- Click on Home Button -- >>Cl...

How to add employee Or offic ..

Please follow the below step add office staff/ society employee : Step 1:- Go to the Home Page Ste...

How to change employee passw ..

Please follow the following steps to change password : Step 1:- Go to the Home Page Step 2:- ...

FAQs for GST ..

Q1) What is GST? Ans - GST is one indirect tax for the whole nation, which will make India one...

Applicability of GST to Hous ..

GST is applicable to Housing Society because it is covered under the definition of Person under the ...

Guidance on issuance of NOCs ..

NO Objection Certificates (NOCs) are required by members of Society for various purposes. NOCs may b...

Registers Records and Accoun ..

Every Cooperative Housing Society  is required to maintain Books of Accounts/ Registe...

Audit Compliances for Societ ..

It is a must to adopt model Bye laws of Hosing Society, as per 97th constitutional amendment 2013. I...

How much water is your Home ..

Thirsty for Knowledge? Let's Learn about water. The water crisis in Navi Mumbai and areas like ...

Are you having hard time dec ..

  "All worries one Solution Societynmore.com !" Societynmore provides you with ...

Guidance for Society Electio ..

For Election process of D category Societies refer  rule 76  in Maharshtra Election Rules ...

Procedure for Appointment of ..

The 97th Amendment to the Constitution of India has made Annual Audit of every Cooperative Society m...

Some Frequently Asked Questi ..

Q. Please advice is it possible to get Deemed conveyance of leasehold property. Society is paying le...

Guidance on Levy of Maintena ..

The contribution to be collected from the Members of the Society, towards Maintenance charges f...

Associate Membership ..

As per MCS Act 1960 read with MCS Rules 1961, any person whose name stands 2nd or 3rd in the Agreeme...

SIMPLE MEASURES TO STRENGTHE ..

Unfortunately, as technology has been growing at one end, it is giving birth to a number of des...

BENEFITS OF WATER ..

Benefits of water can be reaped and enjoyed if you contribute towards conservation on water. We...

HEALTH BENEFITS OF DARK CHOC ..

Anything in extreme leads to disastrous results. Whether it is food or exercise, small amount/ porti...

FREE WI-FI? BEWARE ..

It is in many people’s gene to take an undue advantage of every freely provided...

XIAOMI: MIRACULOUS COMPETITO ..

Tick-tock, tick-tock and Xiaomi Mi3’s 20000 units gets sold out within the...

WHEN YOU CONSERVE WATER, YOU ..

‘A drop of water is worth more than a sack of gold to a thirsty man’. This quote truly d...

FLY GEYSER: GIGANTIC MANMADE ..

With its first look, any individual will assume it’s a fancy water fountain and an amazing tou...

FAT BURNING DIET ..

“Progress is impossible without change and those who cannot change their minds cannot cha...

ENTREPRENEURSHIP YOU HAVE IT ..

Gone are the days when Indian women were forced to stay at home, forcefully covering themselves in a...

TOURISM HAWAII ..

Ever dreamt of a nature’s paradise where you can witness volcano, waterfalls, beautiful beache...

ONE CAUSE WITH THE UNIQUE CL ..

Don’t we consider donkey as one of the most under-rated and ill-treated animal in In...

BENEFITS OF KIWI FRUIT ..

Don’t you get attracted toward the brilliant green colour of this cutest fruit called ‘K...

WAYS OF EASY FEET CARE ..

According to a Chinese saying, “The journey of a thousand miles begins with a small step." Do...

THE SACREDNESS OF GURUVAYUR ..

The serenity of temples wrapped in the beautiful and enormous greenery is a perfect fit for its defi...

UNIQUE PROFESSIONS AROUND TH ..

              We all work hard, and have been taught to have...

SOCIAL MEDIA MARKETING ..

The Entrepreneurship Summit at IIT couldn’t have gotten any better with all the correct notes ...

LIFE'S TOO SHORT TO BUILD ST ..

Yet another fruitful session at IIT and it just couldn’t get any better than this.  In an...

THE THREE MUSKETEERS OF E-CO ..

It was indeed a great pleasure and learning experience to attend and listen the panel discussion arr...

BEYOND EDUCATION ..

It is said, “The actual learning starts after your education and college days are over.”...

EATERY REVIEW: JAIN SABKUCHH ..

Aaaye halloo re halloo... We all get entranced in the garba fever when Navratri arrives. Everyone fe...

BRIDAL WEAR TRENDS THIS WEDD ..

Among thousands of guests on the wedding day, every eye has the assorted feelings of eagerness, love...

BENEFITS OF MUSIC UNFOLDS ..

“If I were not a physicist, I would probably be a musician. I often think in music. I live my ...

Giving a Child a New Heart ..

Once I get that call, everything changes. I might be out with my children, at the movies with my wif...

Six Healthy Drinks ..

 GREEN TEA should be taken at Lunch Green tea kick-starts metabolism and can help fend ...

Indian diaspora basks in U-1 ..

Indians in Australia are ecstatic over India being crowned the world champions in under-19 cricket, ...

Ship of Theseus- Must Watch! ..

Ship of Theseus presented by Kiran Rao Must See! Simplicity a result of profound thought. Here...