Applicability And The Relevant Provisions Which Are Under The GST Law In Respect Of Housing Societie
The Goods and Service Tax has however been one of the key things that has thus caught the attention of the market given that it has its implications. India has however made one of its major mark which is one of its biggest tax reforms since independence. The Indians have witnessed the biggest tax revolution ever in independent India on 1st July .
The Real estate industry in India however in the recent past has thus seen a phenomenal growth, and it is thus not just in the Tier 1 cities, but also in Tier 2 and Tier 3 cities and towns. The industry is thus in the cusp of the increased regulations, with the bills such as the Real Estate (Regulation and Development) Bill, which is thus pending for the approval in the side lines. GST is considered as another development that will however have a significant impact on this sector.
Even though the construction services has always been taxable under the VAT and service tax for a decade or so, the industry is however still plagued with an uncertainty on the key basic issues that however remains unsolved thus leading to intense litigation, especially on the issues like the transfer of development rights in land, taxability of the joint development agreements, taxable value for the goods and services, etc. While it is thus expected that the immovable property transaction, ie, transfer which is by the way of sale of the immovable property after the completion, would however continue to be outside the purview of GST and will also be liable only to the applicable stamp duties, the proposed shift to the GST regime is however expected in order to usher in the wings of change and also wipe the slate clean in a bid however for a fresh start on the indirect taxation of all the other real estate transactions. However, thus the foremost thought in everyone’s mind is thus whether GST is thus indeed the solution to an industry which is however riddled with complex structures and issues.
Thus , In the view of the same, the article below tells some of the provisions which are however relevant for a Co-operative Housing Society.
When we talk about applicability of the GST Law:
GST is however payable on the Supply. The word Supply however has been defined u/s 7(1) of the CGST Act which however includes all the forms of supply of the goods or services or either both made which are however for a consideration by a person in the course of business. The definition of supply is however inclusive hence enabling it however for a broader coverage. As per this definition, any kind of supply of the goods or the services that are however made during the course of business will thus be chargeable under the GST.
The word business which is however used in the definition of supply has however thus been defined u/s 2(17) of the CGST Act. Herein, the clause (e) of Section 2(17) however thus covers the provision by a club, association, society, or also any such body (for however a subscription or also any other consideration) of the facilities or the benefits to its members.
Therefore, after however considering the definition of supply as well as the definition of business, it is thus clear that the services that are however provided by the Housing Societies to its members are however subject to GST.
Taxability:
Services that are provided by a Co-operative Housing Society to its members were however exempted under the Service Tax Law. Thus , In the light of the same, the 14th GST council meeting which was however held on 19th May, 2017 had thus decided that, the certain exemptions which were however there under the Service Tax law will thus be continued under the GST regime. The exemption is however read as under;
“Service either by an unincorporated body or by a non- profit entity which is registered under any law for the time being in force, to thus its own members by the way of reimbursement of the charges or either thus share of contribution –
(a) as a trade union;
(b) thus for the provision of however carrying out any activity which is however exempted from the levy of GST; or
(c) also up to an amount of either five thousand rupees per month per member for the sourcing of goods or the services however from a third person for the common use of thus its members in a housing society or either a residential complex”
Thus , however considering the same, a Co-operative Housing Society, which however collects a maintenance which is up to Rs.5,000 per month per member will however be exempted from the levy of tax under the GST Law.
Also , the tax which is payable under the Reverse Charge is thus as follows :
Normally, tax is payable by supplier of goods or services or both. However, in some of the cases, the recipient is also made liable in order to pay tax. This is however termed as the ‘reverse charge‘.
Its applicability however includes the :
Persons who are however required in order to pay tax under the reverse charge are however required to be registered, which is thus irrespective of the threshold limit which is specified as per section 24(iii) of the CGST Act i.e. when the tax is however payable under the reverse charge basis, the exemption is thus available to the small taxable persons (20 or 10 lakhs) is also not available. Therefore, all the persons who are as defined u/s 2(84) of the CGST Act who however receive the services which are however chargeable under the Reverse Charge as well as who are also either receiving the goods or the services from an unregistered persons are however liable to be registered under the GST Law. Hence, the Housing Societies are thus required in order to get themselves registered if they are thus liable in order to pay GST under the reverse charge for the purpose of receiving the goods from an unregistered person or if the services are however received.
Thus , for further queries related to GST , one can contact LegalRaasta .
Legal Raasta , an online web portal which provides more than 100+ legal services has built however an extremely easy-to-use and an intuitive software for GST . However , the founders of LegalRaasta a startup which provides legal services aims at easing the difficulties related to GST by providing many services . Choosing LegalRaasta is beneficial as:
1. It has , 30+ offices in India
2. It has 10+ years experience
3. It helps to save your time
4. There is a cash back guarantee
Some of the services which it provides are :
1. Tax Filing/TDR – GST Registration , GST Return, ITR , TDS Return filing, Business income return , Bulk return filing , Revised return filing , Respond to tax notice
2. Company Formation – Pvt. Ltd., Limited Liability Partnership (LLP) , OPC registration
3. Registrations – DSC, Trademark, Patent , Copyright
It thus also provides many more services .