GST on Housing Society

[Kaustubh Karandikar]

XYZ Cooperative Society is having commercial units. XYZ not registered with GST since per member contribution is less than ₹ 7500/- per member. XYZ undertaking repairs of society and per member amount to be recovered from each member ₹ 1 to 2 Lakhs. Is XYZ required to register with GST and charge GST to each member on the amount of repairs recovered?

AI Summary

XYZ Cooperative Society Debates GST Registration for Repair Charges Exceeding Member Contribution Thresholds. XYZ Cooperative Society, which includes commercial units, is not registered for GST as member contributions are below 7,500. However, the society plans to recover 1 to 2 Lakhs per member for repairs. Opinions on whether XYZ needs GST registration vary. One view states that any transaction to members is a 'supply' under GST law, requiring registration and GST charges. Others argue that repair charges aren't maintenance fees, thus not requiring GST registration unless contributions exceed the threshold. Additionally, exemptions may not apply to commercial units, and registration is needed if the turnover surpasses the threshold.