Cooperative housing societies will now have to pay GST on maintenance charges; check new rules

The GST Appellate Authority for Advance Rulings (AAAR), Maharashtra bench has upheld an earlier order of the GST Authority for Advance Rulings (AAR) that goods and services tax (GST) is to be levied on maintenance charges collected by cooperative housing societies if the monthly subscription or contribution charged from members is more than Rs 7,500 per month and the annual aggregate turnover is Rs 20 lakh or more.

It should be remembered that in July this year the Central Board of Indirect Taxes and Customs (CBIC) had said that a cooperative housing society will have to levy and collect GST (at the rate of 18%) on the total amount collected as maintenance charges, if it exceeds Rs 7,500 per month, per member. It had also noted that those societies with an annual turnover of more than Rs 20 lakh or less will not have to register under GST. read more