Monday 22 July 2019

Coop Hsg Society GST clarification -Cir No.109 dtd 22.07.2019

Dear Friends ,

The much awaited clarification on Co-operative Housing society GST related issues is issued by GST Dept vide it's Circular No.109 on 22.07.2019

The important clarification wrt exemption limit of RS.7500/- is available upto Rs.7500/- and GST is payable on amount exceeding Rs.7500/- only or the entire Maintenance biling amount if exceeding RS.7500/- is chargeable was the major query even I was getting .

My opinion is being confirmed by the GST Department through this clarification and it's settled now that let's say  if maintenance bill is of RS.8000/- then GST is payable on entire RS.8000/- and not on just 500/- This confusion was created by one of the flyer issued by GST last year.

The other points which are clarified are registration requirements wrt exemption limit   , Input Tax , per unit exemption or per member exemption etc..

Do click on this link to access the circular .

https://drive.google.com/file/d/1cPyHLaX9YZrT_I07jAfW8-uzD_d9mqWh/view?usp=drivesdk

You may connect with me on 9820053395/53495 for further clarification on this or any other GST issues related to CHS.U may  email ur queries to me on ssca28@rediffmail.com .

Regards
CA Shilpa Shinagare

8 comments:

  1. In this limit the exempt amounts of Municipal Tax, BMC Water Charges & Common Electricity Charges are not to be considered ??

    ReplyDelete
    Replies
    1. I believe that if amounts are collected from each member exactly matching with the bills of MCGM for property tax, rather thsn adhoc basis, no GST is payable on property tax part of the bill. For other costs, avoiding incidence of GST may be difficult since collection would always be adhoc

      Delete
    2. As per FAQ dtd 5.9.2017 water , municipal taxes to be excluded and on common electricity GST is applicable though it would be under 7500/- exemption limit since it is recovered as maintenance charges from the members .

      Delete
    3. You need to exclude property tax , water charges .Common electricity is not to be excluded but you can take it in exemption limit of 7500/-

      Delete
  2. Can CHS opt for compostion scheme? I tired for on CHS but GST portal not allowing to opt even though date is 31.07.2019

    ReplyDelete
  3. Advisible not to opt for composition since you won't be allowed to take ITC and turnover should be less than 50 lacs for services under composition

    ReplyDelete
  4. Madam we have purchase a property in badlapur in 2011 in A wing which is having 4 wings A B C and D but till now the builder has not formed a society can you help and guide us on this issue.

    ReplyDelete
  5. CHS were exempted from TDS deduction on interest earned from Co-op Bank till now. We have received the following message purportedly from SVC Bank. "Dear Customer, From FY 2020-21, TDS on FD interest will be @ 10% for Co-op. Societies, if PAN is submitted. Pl. submit PAN to avoid TDS @ 20%". Please confirm.
    kapadiasn@gmail.com

    ReplyDelete

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