The GST system has been introduced to simplify the system of indirect taxation and to ensure ease of operation and transparency. With the help of a robust IT infrastructure, including advanced GST accounting software, Housing society can aim to achieve compliance, like registrations, returns, and payments can be made.
The country is rolling out with GST, With the help of the GST module on Neighbium, all our customers can easily adopt and comply with the new tax standards.
Neighbium, GST Ready Solution is ready to raise Maintenance, Facility booking, and other invoices on society members in formats specified by GST Act. The software is user-friendly to make the process of calculation of invoice generation, etc. extremely easy and error-free.
Other financial transactions such as non-member income and vendor service charges may also be reported so that the required data to file GST returns can easily be produced.
|Type of Services||Annual Turnover||GST Applicable or Not|
|Maintenance Charges Below 5,000/- Per Month Per Member||Annual Turnover of the Society is Also Below 20 Lacs||Not Applicable|
|Maintenance Charges Above 5,000/- Per Month Per Member||Annual Turnover of the Society is Below 20 Lacs||Not Applicable|
|Maintenance Charges Above 5,000/- Per Month Per Member||Annual Turnover of the Society is Also Above 20 Lacs||GST Applicable|
|Maintenance Charges Below 5,000/- Per Month Per Member||Annual Turnover of the society is more than 20 Lacs||Not Applicable|
If the Society becomes liable to pay GST, it can take Input Tax Credit under Sec 16 (1) of the CGST Act subject to conditions for taking the input tax credit. Housing Society is entitled to ITC in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture, etc.), goods (taps, pipes, other sanitary/hardware fillings, etc.) and input services such as repair and maintenance services – Lift AMC, Housekeeping, Security, Fire AMC, Repairs & Maintenance, Contract staff, Accounting & Auditing Services, and other such services
Tax liability under Reverse Charge as defined under Sec 2(98) of the CGST Act also applicable. That means tax shall be payable by the Housing Society when supplies are received which are notified Services as per Sec 9(3) of CGST Act like services of Goods Transport Agency, Advocate Services, etc and also supplies from Un-registered Person under Sec 9(4) of CGST Act. It is advisable to avoid receiving supplies from Un-registered persons.
“Services provided by Co-operative Housing Society or Residential Welfare Association come under Taxable Supply and attracts GST.”
However, Exemption is provided if the monthly subscription of members is less than Rs 5,000 per member. This apart general exemption on supplies up to Rs 20 lakh per annum also available to the Housing Society.
In case the monthly subscription per member and annual turnover cross Rs 20 Lakhs then Housing Society needs register and discharge tax liability. That means the society should issue a tax invoice and collect GST @ 18% (CGST @9% + SGST @9%) from its members.
Input Tax Credit is available on tax paid inputs and capital goods to Registered Housing Societies.