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GST for Housing Societies in Maharashtra
Published By (Mohanraj Y), Date (07 Jun 2017)
GST for Housing Societies in Maharashtra
  1. Registration :    

A Co-op Hsg Society is required to be registered under GST , if the Aggregate turnover exceeds Rs20 lakhs annually.Aggregate turnover shall include all taxable, and exempt services. Aggregate turnover means all billing other than Municipal Tax & Sinking Fund , but includes Interest received from banks, and members.

  1. Exemptions :     

If the maintenance charges towards reimbursement of charges / contributions is less than Rs 5000/- per month  GST will not be charged to such members. However, such members will be charged GST on Vehicle parking charges, Non –occupancy charges , Facility booking, Share Transfer premium etc. which are not of the kind of contributions or reimbursement of charges.

If the maintenance charges towards reimbursement of charges / contributions exceeds Rs 5000/-  per month ,GST will be charged. [ provided the aggregate turnover is morethan Rs 20 Lakhs annually. ]

 

  1. Reverse Charge: If the Society receives any supply of services from Advocates /   firm of advocates, the society has to pay the GST under Reverse    Charge.In case of a Society registered under GST, the GST shall be paid on Inward Supply of goods / services by an Unregistered Vendor  under Reverse charge.The liability to pay GST on reverse Charge basis on unregistered under arises only if the per day reciept of supply of goods or services or both exceeds Rs 5000 on any given day.

 

  1. Taxation on Bills raised on members.

(i)                  Municipal Tax : is covered under Services provided by the Society to its members as an Agent of the Service Recipient and thus, outside the provisions of GST .  However, exact amount of Municipal Tax is required to be recovered from members as paid to BMC .

(iii)               Water Charges :   Water is procured by the Society from the Municipal Corporation and is supplied to the members. Water is a “goods” and attracts “zero “ rate of tax .

(iv)               All other charges, including electricity , repair fund ,sinking fund,   maintenance charges , service charges , vehicle parking charges, non – occupancy charges, any other recovery of expenditure, etc are taxable under the category “Services provided by other membership organizations n.e.c.” under SAC number “999599”

(v)                Interest/ penalty  on delayed payment of maintenance charges  is taxable under GST .

(vi)              Advance Received from members, if any, towards the maintenance charges, is taxable under GST, adjustable against GST payable on raising of monthly/ quarterly bill.

 

  1. Taxation on other Income [ from members or non members ]

(i)                  Interest earned from banks is “Exempt” from GST .

(ii)                Rent received from any Hoarding / Cell phone tower etc, is taxable under the categories :-

                        997211 :  Rental or Leasing Services involving own or leased residential  property.

                        997212  :Rental or Leasing Services involving own or leased non- residential property .

(iii)          All  other incomes and receipts such as

                Facility booking charges

                Fit out charges

                Reimbursement of Expenditure

                Share Transfer premium

                Membership Entrance Fee / Share Transfer fee

                Exhibition in the Society premises  etc.

                Are taxable.

 

  1. Security Deposits : All refundable security deposits are outside the provisions of GST .

 

  1. Input Tax Credit :            

(i)                  All the GST paid on inward supply either for services or for goods , can be set off against liability to pay GST by the Society . However,

(ii)                In case of capital goods procurement, [ Fixed Assets ], the Input Tax Credit can be availed equally spread over sixty months.

(iii)          If the society is availing the benefit of Exemption, then  proportionate Input Tax Credit                 as is attributable to  exempted services will not be available for Input Tax Credit. 

 

  1. Tax payments.

GST has to be paid on or before 20th of Each month for the tax liability of the previous month. GST is to be paid after adjustment of Input Tax Credit available.

 

All GST has to paid electronically.  A challan can be downloaded from the GSTN(  This is the application of the Department to deal with all GST matters -  Returns, Refunds, Payments etc. ) and this challan can be paid at any approved Bank.

 

  1. Returns.

Any Registered Society is required to file three Monthly returns and one Annual Return. If the  Aggregate turnover of the Society exceeds, then the Annual Report has to be submitted along with a Reconcilliation statement certified by a Chartered Accountant.

 

All the returns are time bound .

Return GSTR – 1. This return has to be filed on or before 10th of Each month. In this return one will report the invoice details of all the registered recipients, and the summary of all the invoices raised to unregistered recipients. Also the return includes all tax liability arising out of Reverse Charge .

If there be any corrections in the invoices either through a Debit note / Credit note or omissions/ wrong reporting  in the previous returns etc,  the same have also to be reported under the relevant sub-returns.

 

There are certain other statistical informations to be furnished such as total amount of Zero rated supplies,  Exempted Supplies , Supplies outside the purview of GST , Sl no of invoices issues, invoices cancelled and net number of invoices issued. Etc.

 

While making the return, the Society will also state the GST liability.

 

GSTR – 2. This return has to be filed during the period 11th to 15th of each month for all the Input Services of the previous Month.  To the extent the Registered Suppliers of Goods or Services have provided the details in their GSTR -1 return, the data will be auto populated, and  the society has only to verify the same. Any corrections, omissions etc can be incorporated in this return.  

The INput credit on account of payment of GST under reverse charge needs to be mentioned in the return.

There are certain other information to be provided such total amount of Zero rated supplies,  Exempted Supplies , Supplies outside the purview of GST etc.

While filing the details of the invoices, the Society will also file the Input Tax credit available to it.

Matching :   This is an action to be undertaken by the Society between 16th and 17th .  Any corrections or additions made by the Registered Recipient through his GSTR -2 will be available for acceptance or corrections, or rejections by the Society. 

 

GSTR – 3.This return has to be filed on or before 20th of each month after payment of GST .This is a return to show the liability of the Society to pay the GST .  This is auto populated . The return will allow the Society to adjust the GST payable by it through debit to its GST paid ledger, Input Tax ledger etc.  The interest, penalty or any other demand also can be adjusted out of the GST paid account.

 

Annual Return -  The annual return has to be filed on or before 31st of December next year. This is basically a Annual Reconciliation Statement. For Aggregate annual  turnover less than Rs 1 Crore, the return is self certified. For aggregate turnover exceeding Rs 1 Crore, the return has to be certified by a Chartered Accountant./ Cost Accountant.  

 

Corrections reporting in GSTR 1 and GSTR 2 will be allowed for any month of the year, upto September next, or upto the date of filling of the Annual Return whichever is earlier.

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QUERIES
Queries Do you have some issues which needs some professional clarification ? Post your query and get answers from our panel professionals. To post your query, please register as a registered user, and if already registered as a registered user, please log in and post your query. Answers will be available in this site, and can be viewed by others also.
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FREQUENTLY ASKED QUESTIONS
How to calculate the notice period of any meeting.
If the meeting is required to be called with 14 days clear notice, it means the intervening number of days between the date of the notice and the date of the meeting must be 14, In calculating the days, the date of the notice and the date of the meeting shall not be considered/ counted.
What are the typical salaries by location (Mumbai/Thane) that are given to people working in the society like gardner, manager, waste management etc
There is no standard. Only ensure that you pay the minimum salary as fixed by the Govt. Of Maharashtra for unskilled / semi skilled/ skilled labour under the Minimum Wages Act

We have a query in our committee that we want to replace the existing security agency with New security agency who is assuring for better quality however the price is little higher for it. Can the Managing Committee decide on the same or should it be approved by the General Body ?
Managing Committee can decide on the same. It is an administrative decision.
Who should bear expense of structural repair work inside the flat.
If it is structural repairs, the repairs should be carried out by the Society out of its own funds.
If the agenda items could not be completed,can the meeting be adjourned to any other suitable date?

What should the notice for the rescheduled general body Meeting notify?
If the agenda items could not be completed, the meeting can be adjourned to any other suitable date not later than 30 days from the date of the meeting, as may be decided by the members present in the meeting.
If the new date is not decided by the members present,then the new date should be decided by the committee & a Separate notice to be given without any agenda.

Specimen of the new notice.

To

All members,

Since all the items on the Agenda of the AGM held on ..........could not be conducted on the same day, the meeting was postponed.

Accordingly, to conduct and conclude the remaining items on the Agenda, the postponed meeting will now be held on _ at __ at __.

The meeting will start exactly at the time notified above, irrespective of the number of members present. All the members are requested to be present in time.
For ...

Secretary .,

date
Can a member / group of members of a Society seek change of date of the AGM ?
Bye_Law No 99:

The Committee shall decide the date, time and place of every general body meeting of the society and the business to be transacted thereat, provided that the business to be transacted at the requisitioned special general body meeting shall be only that mentioned in the requisition. The notice convening the general body meeting shall be issued by the Secretary of the Society accordingly as provided in Bye_Law no 163. On his failure to issue thenotice, the Chairman shall issue it.



It is very clear, that the date, time and venue of the AGM can only be decided by the M C and members do not have a say in it.



Mohanraj
What are the steps involved in the recovery of dues under sec-101?
Ans:

1. Society to issue a Notice to the defaulter and giving him an opportunity to make payment within stipulated time and with a warning therein that on failure of the same, an application would be made to the Registrar under Sec-101 of the MCS Act for the recovery.

2. MC has to pass a resolution for taking such an action.

3. Secretary / Chairman has to make an application to the Registrar of the Co-operative Societies along with necessary documents.

4. Registrar would give hearing to the member and accordingly a certificate will be issued by him to the society.

5. On receipt of the certificate under Sec-101 from Registrar along with other documents, the recovery officer has to prepare demand notice to be sent to sale officer detraining movable property of defaulted member concerned.

6. Sale office on receipt of the recovery papers from the recovery officer has to visit the premises of the member for preparing inventory of the movable property and hand over this list to the member and serve the demand notice on him.

7. If even after serving the demand notice, the amount is not paid by the member, the sale office seizes the movable property of the member as per the inventory and hand over the same to Secretary / Chairman of the society for safe custody.

8. After Sale officer will fix the date, place for such an auction of the movable property seized and auction out the same and pay sale proceeds thereof to the society in satisfaction of the outstanding dues payable by the defaulter member.

9. If the proceeds of the sale of movable property are found to be insufficient to cover the outstanding dues in full, sale officer will proceed by arranging auction of the premises to recover the balance of the dues payable by the member.
What is the time gap of the Special General Body Meeting Notice is issued?
Ans: It should be clear 5-days notice
What if the Extension of AGM to be sought?
Ans: The Annual General Body Meeting of every housing society needs to be held on or before 30th of September. If it is not possible to hold the AGM before 14th of September, there is no provision for seeking extention from the Dy. Registrar. In such a case, the Dy. Registrar may impose penalty on members of the Managing Committee , and also dismiss the committee, and appoint an Admministrator for a period not exceeding six months with directions to hold election to the Managing Committee. The members of the dismissed committee may not be eligible to contest the election .
Period within which Annual General Body meeting to be held & its functions
Ans: Annual General Body meeting is required to be conducted before 30th September every year.
The annual general body meeting of the Society shall transact the following business :

(i) to read the minutes of the last annual general body meeting of the society and the special general body meeting of the society, if any and to note the action taken thereon,

(ii) to receive from the committee, the annual report of its activities on the preceding co-operative year's working,together with the statement of accounts in form 'N'prescribed under Rule 62(1) of the Rules, showing the income and expenditure during the preceding cooperative year and the balance sheet as at the close of the preceding co-operative year

(iii) to consider audit report, received from the Auditor appointed as provided in section 75(2A) of the Act for the previous co-operative year along with audit rectification report of the committee thereon,

(iv) to declare regarding date and conduct of election of its Committee when due,

(v) to appoint an auditor, for the Audit, from the panel approved by State Government.

(vi) to consider any other matters, specifically requiring decisions, concurrence or sanction of the general body meeting of the society, by virtue of the provisions in the Act, Rules and the bye-laws of the society,

(vii) to consider any important communications received from the Registering Authority, the Statutory Auditor,Government, Collector, Local or any other competent authority.

(viii) to consider any other matter, with the permission of the Chair, excepting those requiring proper notice, after the regular agenda is over and which are permitted under the provision of the Act, Rules & bye-laws.

(ix) To place annual budget for the next financial year for consideration.

(x) To receive from committee the Audit Rectification Report and Action taken thereon.
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