GST on Housing society

[Kaustubh Karandikar]

XYZ (Cooperative Housing society) is of about 10 buildings and each building is a separately Registered Society. All these buildings are managed by a federation. Federation consists of members from these 10 society only. Federation bills these society a consolidated bill for common maintenance. They charge GST for this. Whereas individual member society does not charge GST and therefore this GST is total loss. To avoid GST loss, 1) can the federation bill individual members and since the individual members bill will be less than 7000/- no GST. 2) Individual society will issue bills to the members and since the individual members bill will be less than 7000/- no GST.

[Rajagopalan Ranganathan]

Sir,

If the federation charges ₹ 7000/- or more from the member societies gst is liable to be paid by the federation and the federation has to get itself registered under CGST Act. The societies may charge the individual members and that charge may be less than ₹ 7000/- and hence there will be no gst. Another thing that will fall for consideration is the rules that governs the functions of the federation and the societies. In my opinion federation cannot issue invoices to individual members since they are not members of the federation.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Renganathan sir

[Bhavika Chothani]

Both the options can be considered to avoid loss of GST. But the only thing which need to be taken into consideration is if the value of individual members bill crosses 7000/- then the federation has to get itself registered to charge GST

AI Summary

Federation Cannot Bill Individual Housing Society Members Directly to Avoid GST; Societies Should Bill Members Separately A cooperative housing society consisting of 10 buildings, each as a separate registered society, is managed by a federation that issues a consolidated bill for common maintenance, including GST. The issue raised is whether the federation can bill individual members to avoid GST charges, as individual bills below 7000 are not subject to GST. Responses suggest that the federation cannot bill individual members directly, as they are not federation members, and recommend that individual societies bill their members instead, ensuring amounts remain below 7000 to avoid GST. The federation must register under the CGST Act if billing exceeds 7000.