Q1) What is GST?

Ans - GST is one indirect tax for the whole nation, which will make India one unified common market.

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

Q2) Types of GST?

Ans – There are three types of GST:

CGST: where the revenue will be collected by the central government

SGST: where the revenue will be collected by the state governments for intra-state sales

IGST: where the revenue will be collected by the central government for inter-state sales.

Q3) How it impacts housing societies?

Ans - The GST bill has proposed that a CHS collecting 5000 or more per month from a society member or if the annual maintenance collection of the CHS is above 20 lakh, then 18% tax would be levied on the CHS.

The GST is not applicable on municipal tax, property tax, water bill, non-agricultural land tax, sinking fund, etc. All other charges, including repair fund, attract the 18% GST levy.

Q) How to get ready for GST?

Ans – First step to complying with GST is to obtain GSTIN number.

          If you are already registered under Service Tax, it should be migrated to GST. Else, a new           registration needs to be applied for.

   Refer Government’s GST portal: http://www.gst.gov.in/

Q4) Should a housing society register for GST even if all members pay less than 5000 per month?

Ans - Even if every member in your society is paying less than 5000 per month, if the annual collection from members in your society is more than 20 Lakh, your society will have to register under GST.

Q5) GST tax invoice Vs bill of supply for housing societies?

Ans - There are two types of invoices:

Society have to issue tax invoice when the society is issuing invoice for taxable goods or services being offered to its members or external parties.

Bill of supply invoices are issued when society is issuing invoices for tax-exempt/non-taxable goods or services being offered to its members or external parties.

Q6) Should the invoice number be different series for Bill of Supply and tax Invoice?

Ans - Yes, the invoice number should be separate for bill of supply and tax invoices.

Q7) Can there be one invoice for both taxable and tax-exempt services for housing societies?

Ans - Yes, one single invoice can contain both taxable and tax-exempt line items. The taxable portion of invoice amount must be appropriately mentioned in the GST returns at the end of the month.

Q8) Is GST charged for late payment/penalty charges in housing societies?

Ans - If your housing society comes under GST then you need to charge 18% GST on late payment under section 15(2)(d) of GST. Out of 18% GST, 9% will be CGST & 9% will be SGST.

Q9) What are the important dates for GST return filing for housing societies?

Ans - Following are the various minimum returns to be filed for GST and their deadlines for every society.