GST..the buzz word these days..All are talking about the GST applicability for traders and businessmen and CHS as usual are waiting for the clarity on the applicability , the impact and the solutions on how to go ahead.
So..lets find out whether GST is applicable for CHS or not?
GST is a levy and what is taxed is " Supply" which includes supply of goods or services or both for a consideration by a "Person" in the course of furtherance of "Business" .
Now, let's analyse whether CHS is a "Person" doing " Business" for consideration?
The answer is available in the definition of the "Person" where even Cooperative Society is covered as a person liable for GST. Then the question comes , is society doing a Business ?? Because what is covered is GST on a Person carrying on Business and the definition of " Business " covers to say- provision by a club, association , society or any such body providing facilities or benefits to its members for a subscription or any other consideration. So the activities of CHS are very much covered under the definition of "Business" . Thus , GST is very much applicable to CHS .
Now, on what amount the GST is applicable and whether threshold limit is applicable to CHS? The threshold limit of RS.20lacs is very much available to the CHS being a Person and what is going to be considered is "Aggregate Turnover" which is nothing but the taxable and Exempt supplies or Taxable and Exempt services that CHS Provide.
Now, what are Exempt supplies or services and what are Taxable Supplies or Services?
The Exempt supplies are those services which are either attracts nil rate of a tax or are covered by Exemption Notification. Now, As per Exemption Notification, the maintenance charges upto RS.5000 per member per month are exempt . The maintenance charges which are collected from the members as reimbursement of expenses ie for procuring services from third person for Common Use is what is Exempt and not the entire Maintenance Bill amount. That means each and every society will have to see the itemised bill and decide which item is reimbursement of charges for common use .So, if any item of bill is not for common use but member specific item then it will be a Taxable supply.So ideally, the maintenance charges collected per unit basis for common maintenance will only be subject to 5000/- exemption limit and Parking and NoC will not be covered since it's member specific service in my opinion.
Now, there are certain other receipts like Bank FD Interest , Mobile Tower Rentals , Hoarding Income, Transfer Premium for transfer of Flat etc. Bank FD interest is specifically exempt under GST but other receipts Since not in the nature of Reimbursement of expenses but in the nature of member specific receipt or is a Taxable receipt and hence would be subject to GST.
So, if the Exempt supplies, Taxable supplies including other receipts are within threshold limit of RS.20 lacs then only GST registration is not needed otherwise just because of parking or NOC or Mobile Rentals or Transfer Premium, the CHS may be liable for Registration for GST.
Feel free to reach me on ssca28@rediffmail.com OR call me on 9820053395/53495
CA Shilpa Shinagare
So..lets find out whether GST is applicable for CHS or not?
GST is a levy and what is taxed is " Supply" which includes supply of goods or services or both for a consideration by a "Person" in the course of furtherance of "Business" .
Now, let's analyse whether CHS is a "Person" doing " Business" for consideration?
The answer is available in the definition of the "Person" where even Cooperative Society is covered as a person liable for GST. Then the question comes , is society doing a Business ?? Because what is covered is GST on a Person carrying on Business and the definition of " Business " covers to say- provision by a club, association , society or any such body providing facilities or benefits to its members for a subscription or any other consideration. So the activities of CHS are very much covered under the definition of "Business" . Thus , GST is very much applicable to CHS .
Now, on what amount the GST is applicable and whether threshold limit is applicable to CHS? The threshold limit of RS.20lacs is very much available to the CHS being a Person and what is going to be considered is "Aggregate Turnover" which is nothing but the taxable and Exempt supplies or Taxable and Exempt services that CHS Provide.
Now, what are Exempt supplies or services and what are Taxable Supplies or Services?
The Exempt supplies are those services which are either attracts nil rate of a tax or are covered by Exemption Notification. Now, As per Exemption Notification, the maintenance charges upto RS.5000 per member per month are exempt . The maintenance charges which are collected from the members as reimbursement of expenses ie for procuring services from third person for Common Use is what is Exempt and not the entire Maintenance Bill amount. That means each and every society will have to see the itemised bill and decide which item is reimbursement of charges for common use .So, if any item of bill is not for common use but member specific item then it will be a Taxable supply.So ideally, the maintenance charges collected per unit basis for common maintenance will only be subject to 5000/- exemption limit and Parking and NoC will not be covered since it's member specific service in my opinion.
Now, there are certain other receipts like Bank FD Interest , Mobile Tower Rentals , Hoarding Income, Transfer Premium for transfer of Flat etc. Bank FD interest is specifically exempt under GST but other receipts Since not in the nature of Reimbursement of expenses but in the nature of member specific receipt or is a Taxable receipt and hence would be subject to GST.
So, if the Exempt supplies, Taxable supplies including other receipts are within threshold limit of RS.20 lacs then only GST registration is not needed otherwise just because of parking or NOC or Mobile Rentals or Transfer Premium, the CHS may be liable for Registration for GST.
Feel free to reach me on ssca28@rediffmail.com OR call me on 9820053395/53495
CA Shilpa Shinagare
