There are certain questions which have always been asked in respect of the impact of indirect taxation on Co-operative societies. In this short Question section we intend to aim at covering those:

Question -1 – Is GST leviable on property tax, water tax, maintenance fund, car parking charges etc. collected by co-operative society?

Answer – Services provided by the Central Government, State Government, Union territory or local authority to a person other than a business entity, is exempted from GST. So, Property Tax, Water Tax, if collected by the RWA/Co-operative Society on behalf of such authority, no GST will be leviable. But where society is collecting charges to provide services to its members, like for providing drinking water facility or car parking facility, then such charges are leviable to GST.

Question -2 What is the scenario of applicability of GST on contribution and charges paid by members amounting to less than Rs 5000?

Answer –  Specific exemption of an amount upto Rs 5000 per month per member has been provided in respect of reimbursements of charges or share for sourcing of goods or services from a third person for the common use of its members. Here, charges mean the individual contributions made by members of the society to avail services or goods by the society from a third party for common use.

Question -3 Housing Society provides certain services like providing its community hall for events to organizations who are not the member of the society. Is GST applicable on such services ?

Answer – The decision as to whether the GST is applicable or not shall be taken under the purview of common provisions provided under GST Act regarding registration i.e. if the total turnover exceeds the threshold limit of, then GST shall be applicable.