Is this 18 per. rate and below 5000 exemption is applicable for commercial

Q: No the said exemption is only for residential RWA societies, for commercial it is applicable from INR 1, if the association is having aggregate turnover above 20 L per annual as per GST law.Regarding second query if the association is working as pure agent , where actual liability is of the unit not society, than not applicable however in you case connection is in the name of society and same is collected on actual consumption basis GST shall be levied. The commercial unit can claim the same as input if they are registered. ?

Mr. Prabhat Jain, Apartment Resident

5th October 2017

Legal in Pune

gst

goods and services tax

gst on commercial properties

18% gst on commercial properties

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Replies (2)

According to the Schedule 2 of the GST Act, renting out of an immovable property would be treated as a supply of services. GST, however, will be applicable only on certain types of rent such as a) When a property is given out on lease, rent, easement, or licensed to occupy, b) When any property is leased out (or let out) including a commercial, industrial, or residential property for business (either partly or wholly). These type of renting are considered as a supply of services. Service tax was set at 15% of the rent for commercial properties.

Anirudh Patel, Mumbai

27th October 2017

Comment

No GST on housing society maintenance up to Rs 5000. Monthly maintenance charges, which you pay to your co-operative housing society, will not attract GST, provided it is Rs 5000 or less per month.

even if you are paying more than Rs 5000 per month as maintenance charges, if total collections of the CHS are less than Rs 20 lakh a year, the society will not have to register under GST. Consequently, it will not be liable to impose GST on taxable services such as maintenance charges, parking charges etc.

Jerome Fernandez, Mumbai

27th October 2017

Comment

Remember, a taxpayer earning more than the exempted threshold will have to register under GST and pay taxes. So, if you have given your unit to businesses, then it is taxable if you are getting more than Rs 20 lakh as rent.

Kishore Pathak, Mumbai

27th October 2017