GST compliance is one of the most misunderstood and critical aspects of cooperative housing society management. Many societies are unsure about GST applicability, exemption limits, billing methods, and return filing procedures. Lack of proper knowledge can lead to penalties, notices, and unnecessary financial burden on members.
This blog explains everything a cooperative housing society must know to remain GST compliant and legally safe.
Is GST Applicable to Cooperative Housing Societies?
Yes, GST can be applicable to cooperative housing societies. A society is required to register under GST if its aggregate annual turnover exceeds ₹20 lakh (₹40 lakh in some cases, depending on applicable rules and services).
Even if a society’s turnover is below the threshold, GST may still apply on certain charges collected from members if specific conditions are met.
When is GST Charged on Maintenance Bills?
GST is applicable when:
- Monthly maintenance charges exceed ₹7,500 per member, and
- The society’s annual turnover exceeds the prescribed GST threshold
If both conditions are satisfied, GST at 18% is applicable on the entire maintenance amount, not just the amount exceeding ₹7,500.
Charges on Which GST is Applicable
GST may apply on:
- Maintenance charges
- Sinking fund contributions
- Repair and maintenance fund
- Car parking charges
- Non-occupancy charges
- Interest collected on late payments
However, statutory charges such as property tax, water charges, and electricity charges collected on actual basis are generally exempt.
GST Registration for Housing Societies
Once liable, a cooperative housing society must:
- Obtain GST registration
- Display GSTIN on all invoices
- Issue GST-compliant maintenance bills
- Maintain proper records and documentation
Delayed registration can attract penalties and interest.
Input Tax Credit (ITC) – A Major Benefit
Registered societies can claim Input Tax Credit (ITC) on GST paid for:
- Repairs and maintenance services
- Lift maintenance
- Security services
- Housekeeping and other taxable services
Proper ITC management can significantly reduce the GST burden on members.
GST Return Filing Requirements
Registered societies must file:
- GSTR-1 – Monthly/Quarterly outward supplies
- GSTR-3B – Monthly tax payment and summary return
Timely return filing is crucial to avoid penalties and interest.
Common GST Mistakes Made by Housing Societies
Some frequent mistakes include:
- Charging GST incorrectly
- Missing GST registration deadlines
- Improper billing format
- Failure to claim eligible ITC
- Late or incorrect return filing
These errors often result in GST notices and financial loss.
Why Professional GST Guidance is Important
GST rules are complex and subject to frequent updates. Professional guidance ensures:
- Correct GST applicability assessment
- Accurate billing and compliance
- Maximum utilization of ITC
- Timely return filing
- Peace of mind for Managing Committees
