GST on co - operative housing society

[Kaustubh Karandikar]

1. What is the Applicability of GST on the penal interest charged by a cooperative housing society from its defaulting members.

2. What is the Applicability of GST in case the monthly maintenance amount exceeds Rs.7500/- due to penal interest in case of default.

AI Summary

Penal interest as value of supply attracts GST when charged by housing societies, regardless of exemption entry applicability.
Penal interest charged for delayed payment is included in the value of supply and attracts GST at the same rate and liability mechanism as the underlying supply when the society is registered or required to be registered; exemption entry No. 77(c) does not cover penal interest and GST treatment depends on the society's registration triggers.