GST Resident Welfare Association/ Housing Society under GST

Resident Welfare Association/ Housing Society under GST

Registration requirement

If the aggregate turnover of such RWA is upto Rs.20 Lakh in a financial year, then such supplies would be exempted from GST even if charges per member are more than Rs. 7500

Exemption Limit

RWA shall be required to pay GST on monthly subscription/contribution charged from its members if such subscription is more than Rs. 7500 per member and the annual turnover of RWA by way of supplying of services and goods is also Rs. 20 lakhs or more.

Input Tax Credit (ITC) Allowed 

If the Society becomes liable to pay GST, it is allowed to take Input Tax Credit under Sec 16 (1) of CGST Act subject to conditions for taking input tax credit. Housing Society is entitled to ITC in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture etc.), goods (taps, pipes, other sanitary/hardware fillings etc.) and input services such as repair and maintenance services – Lift AMC, Housekeeping, Security, Fire AMC, Repairs & Maintenance, Contract staff, Accounting & Auditing Services and other such services.

ITC of Central Excise and VAT paid on goods and capital goods was not available in the pre-GST period and these were a cost to the RWA.

TAX RATE APPLICABLE ON RWA

As per Notification No. 11/2017-Central Tax (Rate)  for services related to Services furnished by business, employers and professional organizations Services, Services furnished by trade unions & Services furnished by other membership organizations falling under SAC 9995 the Central Tax Rate is 9%. Similar Provisions are made under SGST Acts also. Therefore there will a levy of 18% (CGST @ 9% + SGST @9%).

 

Composition Scheme

Housing Society is not eligible for Composition Scheme.

RETURNS AND DUE DATES

All the Registered Persons (Normal Registration) will have to file 3 returns in a month.

GSTR – 1 by 10th of following month  – Towards Outward Supply (Maintenance Charges)

GSTR – 2 by 15th of following month –Towards Expenses Side and

GSTR – 3 by 20th of following month – Monthly consolidated return and

GSTR – 9 by 31stDecember of the Following Year.

GSTR-3B Return

GSTR-3B return will have to be filed by all taxpayers in addition to GSTR-1, GSTR-2 and GSTR-3 return. Earlier, GSTR-3B returns were to be filed for the month of July to December 2017.

IN 23rd council meeting, it has been announced that GSTR-3B return must be filed for all months from July 2017 to March 2018. The due date for GSTR-3B return will be the 20th of every month.

FEE FOR LATE FILLING OF GST RETURN

When a Registered Dealer misses filing GST Returns within DUE DATE a late fees is levied by the government.

If GSTR-1 is not filed within due date you will be liable to pay late fees of Rs. 200 per day of delay

Records and Accounts

Maintain proper Records of Supply & Expenses and preserve such records for 72 Months.

LATEST UPDATES

  • 25th GST Council Meeting enhance the exemption limit of Rs 5000/- per month per member to Rs 7500/- in respect of services provided by Resident Welfare Association (unincorporated or nonprofit entity) to its members against their individual contribution.
  • The late fee for delayed filing of GSTR-1 is being reduced to Fifty Rupees per day and shall be Rupees Twenty Five in case of Nil returns.

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, VALUE ADDED TAX,GOODS AND SERVICE TAX, Excise, Department of Consumer Affairs, Etc for resolving their doubts or for clarifications.

 

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