No GST if monthly maintenance charges of CHS are up to Rs. 5, 000

GST charges apply only on some goods and services throughout India as GST or Goods and Services Tax is a tax which is for one nation and one tax. This is the reason that many products come under new GST tax of 2017. Though authorities cleared doubts about GST and who should pay GST tax still some people have confusion about it.

GST on co – operative housing society

Authorities also cleared confusion about tax on maintenance that co – operative housing society takes from houses in that particular society. This maintenance is to maintain security, lifts, parking option and other facilities in the society. In this way people are happy and stay safe.

However after implementation of Goods and Services Taxes in India on 1 July 2017 there have been many changes in the way you pay tax. There are changes in the way or on products you pay taxes for. To help you further you keep reading this article to know more.

You can also know about steps for GST registration.

Things to know about GST on maintenance charges in CHS

CHS in housing is short form for co – operative housing society and when you stay in this society then you pay monthly maintenance charges. Moreover these charges differ as it depends on the facilities that these co – operative societies provide.

If you look carefully then you see that some societies have less maintenance charges whereas there are other societies that charge more. It is so because they have other facilities such as gym, club house or swimming pool. This becomes the reason for such high prices or monthly maintenance charges. And generally total maintenance of these housing societies cross Rs. 20 lakh every year.

Rules for GST registration

As many of you know that you should register under GST and pay taxes under new GST when annual income crosses Rs. 20 lakh mark. So same is the case with amount that co – operative housing societies have at the end of year.

FAQs on GST registration for co – operative housing societies

Even Tax Research Unit of Ministry of Finance clearly specified that if housing societies collect more than Rs. 20 lakhs on an average in one year then they should register for GST. Calculation of 20 lakh rupees is when total amount of CHS collected is 20 lakhs.

It means that even if you pay Rs. 5, 000 as monthly maintenance charges and total amount of complete housing society is less than Rs. 20 lakh then you do not pay any tax. Therefore before you pay GST under GST for co – operative housing society, you should know what is total amount of maintenance for one year.

Also learn about types of GST returns and how file GST returns.

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