GST for Housing Society (applicable, rates & inputs)
GST for Housing Society

GST for Housing Society Introduction:

GST for housing society is mandatory for every community whose turnover exceeds Rs.20 lacs in the previous year. On July 1, 2017, the GST bill had approved by the president and applied to all Indian housing societies. Hence all housing society registered under the central excise and GST council finalized the rules and regulations for organizations. GST applies to the community, which is offering services to its member in the form of standard charges and payment to constructors. Moreover, the entire procedure is online and requires no manual intervention.

GST stands for Goods and Services Tax. In 2017, the Goods and Service Tax introduced in the Indian government, and it had successfully passed in parliament on March 29, 2017. It is an indirect tax that forced on the entire country. In other words, GST levied on the supply of goods and services in India.

Applicability of GST:

These are the following points that simplify the applicability of GST on any Housing Societies

Maintenance & Repair Charges
GST is applicable is maintenance and repair charger of any housing society if the total sum of goods and services exceeds Rs.7500 per member

Parking Charges
GST is applicable if parking charges fall under service definition

 Water Charges
GST applies to water charges if the water used in a common area

Sinking Fund
GST may be applied for the utilization of the sinking fund and may attract Tax

 Property Tax
GST is not applicable on Property tax

 Rate of Tax:

These are the following rates of GST applicable in the case of Housing Society:

28% of GST Tax is applicable on accommodation in guest houses, clubs or other commercial places meant for residential where room rent is Rs 5000 and above per night per room
18% of GST Tax is applicable on Renting guest houses, clubs or other commercial places meant for residential where room rent is Rs 2500 and above but less than 5000 per room per day.
12% of GST Tax is applicable on Renting of guest houses, clubs or other commercial places where room Traffic is Rs 1000 and above but less than 2500 per room per day.
18% of GST is applicable on all other services which are not specified elsewhere
Input Tax Credit:

Housing societies are allowed to take credit of taxes paid on input and utilize the same for payment of output tax because housing societies paid GST for its capital goods like generators, water pump lawn furniture etc. Other goods like taps pipes, different sanitary/hardware fillings etc. and input services such as repair and maintenance.

Periodic Compliances by Society in Respect of GST:

The Housing Society has to file three monthly return of GST.

GSTR-1 (Return in respect of sales)
GSTR2-A(Return in respect of purchases)
GST return for net liability payable
Lastly, society has to file GSTR-9 annual return which needs to be filled by the end of next year.

Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.

GST for Housing Society (applicable, rates & inputs)
Maniraj Anantham 1 March, 2024
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