Under Sec 7(1) of the CGST Act, the expression Supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration in the course or furtherance of business.
Therefore, considering the definition of supply as well as definition of business and person, it is clear that services provided by the Housing Societies to its members are subject to GST.
In case, a Cooperative Housing Society is collecting more than Rs 5000 per month from a society member and if the annual maintenance collection of the society is above Rs 20 lakh, then 18% tax would be levied on the Cooperative Housing Society.
If the societys maintenance amount is less than Rs 5,000 per member, but if the society’s membership base is large and the total collection exceeds Rs 20 lakh per annum, the society would be liable to pay GST.
Read the full article with illustration by reading our note in Reckoner or by clicking link below
http://www.madhuvridhi.com/resources/reckoner/