Question1.  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.

Answer 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 t hese  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,  a ttract  GST, as these charges are collected by the  RWA/Co - operative  Society for supply of  services meant for its members.

Question2  As per guidelines on  maintenance  charges  upto Rs.5000/- no GST is  applicable.  Maintenance  charges  means only maintenance or collection  of all charges

Answer2 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 ]

Question3 Monthly maintenance (all above charges) are below Rs.5000/-but yearly total collectionexceeds Rs.20 lakhs limit whether GST is applicable

Answer3 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 Co-operative 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.

Question4 At present we are following quarterly billing-whether we should change to monthlybilling in view of the monthly return to be filed under GST Rules.

Answer4 It is individual business decision.

* [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.]