S. No.
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Question
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Answer
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1.
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The
society collects the following charges from the members on quarterly basis as
follows:
1.Property Tax-actual as
per
Municipal
Corporation of Greater Mumbai (MCGM)
2.Water
Tax- Municipal Corporation of Greater Mumbai (MCGM)
3.Non- Agricultural Tax-
Maharashtra State Government
4.Electricity
charges
5.Sinking
Fund- mandatory under the
Bye-laws
of the
Co-operative
Societies
6.Repairs
& maintenance fund
7.Car
parking Charges
8.Non
Occupancy Charges
9.Simple interest for late payment.
From
the tax/ charge as listed above, on which GST is not applicable.
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1.
Services provided by the Central
Government, State Government, Union territory or local authority to a person
other than business entity, is exempted from GST. So, Property Tax, Water
Tax, if collected by the RWA/Co-operative Society on behalf of the MCGM from
individual flat owners, then GST is not leviable.
2.
Similarly, GST is not leviable on Non
Agricultural Tax, Electricity Charges etc, which are collected under other
statutes from individual flat owners.
However, if these charges are collected by the Society for generation
of electricity by Society’s generator or to provide drinking water facility
or any other service, then such charges collected by the society are liable
to GST.
3.
Sinking fund, repairs &
maintenance fund, car parking charges, Non- occupancy charges or simple
interest for late payment, attract GST, as these charges are collected by the
RWA/Co-operative Society for supply of services meant for its members.
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2.
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As
per guidelines on maintenance charges upto Rs. 5000/- no GST is applicable.
Maintenance charges means only maintenance or collection of all charges
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This
is applicable to only the reimbursements of charges or share of up to an
amount of five thousand rupees per month per member 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. [*Entry 77(c) of notification no 12/2017 Central
Tax (Rate) dated 28.6.2017 refers]
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3.
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Monthly
maintenance (all above charges) are below Rs.5000/-but yearly total
collection exceeds Rs. 20 lakhs limit whether GST is applicable
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Reimbursement
of charges or share of contribution up to an amount of Rs. 5000/- per month
per member for sourcing of goods or services from
a third person for the common use is not
liable to GST. However, if the Cooperative society/ RWAs provide specific
services of its own to its members or to any third party (e.g. use of
community hall for social function by a non-member) cumulatively exceeds the
threshold limit as per GST, then GST is leviable on such supply of services.
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4.
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At
present we are following quarterly billing-whether we should change to
monthly billing in view of the monthly return to be filed under GST Rules.
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It is individual business decision.
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*[Service
by an unincorporated body or a non- profit entity registered under any law for
the time being in force, to its own members by way of reimbursement of charges
or share of contribution – (a) as a trade union; (b) for the provision of
carrying out any activity which is exempt from the levy of Goods and service
Tax; or (c) up to an amount of five thousand rupees per month per member for
sourcing of goods or services from a third person for the common use of its
members in a housing society or a residential complex.]
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