CHS: GST on maintenance charges in Maharashtra

Reports suggest around 70,000 co-operative Housing Societies in Maharashtra have to follow the GST regulations as their annual collections may soon exceed the Rs 20-lakh mark, reports Money Control.

Of these, 50,000 societies are in the Mumbai region alone, co-operative sources confirm.

Transfer fees paid by incoming and outgoing members to the societies constitute their annual turnover.

Government had earlier said GST will cover maintenance charges collected from house owners amounting to Rs 20 lakh or more annually.

 

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Comments ( 2 )

  1. ISHWER C NAIK

    Members of housing societies are required to contribute in the kitty (of which collective ownership rests with ali the members) the exact amounts as determined by the Committee and apportioned on every flat on the basis specified under the society’s registered bye laws. What is the service provided by the Committee (On behalf of the housng society) is collecting the member’s contribution and produring common amenities and services to every flats. What is the remuneration / service fees charged by the Committee? “ZERO” On what GST is to be computed? TURNOVER is a “commercial term” is expreesed as number of times the business enterprise turns over its “working capital” in a year to generate business profits. Can any body explain how these activities are laible to GST?

  2. ISHWER C NAIK

    Yet another rationale for keeping members’ contribution out of GST net is this. The Housing Society acceses fromthe market common amenities and services enmass paying applicable service changres. The distribution of these amenities and services agisnt member contribution is not a commercial transcation and it can not be equated with business transaction at all.

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