“GST Compliance for Housing Societies in 2024”

Many housing societies in India might be wondering if the Goods and Services Tax (GST) applies to them. GST is a tax levied on most goods and services. Let’s see if your society needs to worry about it in 2024.

Does GST Apply to All Housing Societies?

Not necessarily! The government has an exemption for smaller societies. Here’s the deal:

• If your society’s annual income is less than Rs. 20 lakh, you generally don’t need to register for GST and collect it from members

Important Note: There are some exceptions based on location

What About Maintenance Charges?

Even if your society is exempt from GST registration, there’s one more thing to consider:

• If the monthly maintenance charge per member EXCEEDS Rs. 7,500, then GST applies to that amount exceeding Rs. 7,500.

There’s a good side though:

• Each member gets their own Rs. 7,500 exemption. So, if a family has two members, the GST would only apply to the amount exceeding Rs. 15,000 (Rs. 7,500 x 2).

• When Does GST Apply to Other Society Expenses?

If your society pays for things like repairs, hiring a security company, or cleaning services, GST might apply depending on the service and the total amount paid

Do We Need to Register for GST?

If your society is above the exemption limit (Rs. 20 lakh or Rs. 10 lakh in some states) or if a significant portion of your maintenance charge exceeds the per-member exemption (Rs. 7,500), then you might need to register for GST.

What if We’re Not Sure?

If you’re unsure about GST applicability to your society, consulting a tax advisor is a good idea. They can help you understand the rules and determine if you need to register.

Remember: Understanding GST can be a bit complex, but knowing the exemption limits and per-member thresholds can help you determine if it applies to your housing society. If you’re unsure, seek professional advice to avoid any confusion.

Also Watch : https://www.dearsociety.in/post/2024/03/06/project-management-consultants-key-players-in-redevelopment/Important Rera Judgements taken by MahaRERA under different circumstance-2

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