Issue No: 21
Moneta
From Clause (e) of Sec 2(17) of CGST
Act, it is clear that business
includes provision by a society of the
facilities
or
benefits
to
its
members. Therefore Housing Society
providing Services to its Members is
considered as in the course of or
furtherance of Business.
What is Business ?
Sec 2(17) of CGST Act defines
―business‖ includes––
(a)
Any
trade,
commerce,
manufacture, profession, vocation,
adventure, wager or any other similar
activity, whether or not it is for a
pecuniary benefit;
From all the above discussions
following inferences may be made:
(b) Any activity or transaction in
connection with or incidental or
ancillary to sub-clause (a);
(c) Any activity or transaction in the
nature of sub-clause (a), whether or
not there is volume, frequency,
continuity or regularity of such
transaction;
(d) Supply or acquisition of goods
including capital goods and services
in connection with commencement or
closure of business;
(e) Provision
by
a
club,
association, society, or any such
body (for a subscription or any
other
consideration)
of
the
facilities or benefits to its
members;
(f) Admission, for a consideration, of
persons to any premises;
(g) Services supplied by a person as
the holder of an office which has
been accepted by him in the course
or furtherance of his trade,
profession or vocation;
(h) Services provided by a race club
by way of totalisator or a licence to
book maker in such club; and
July 2017
(i) any activity or transaction
undertaken
by
the
Central
Government, a State Government or
any local authority in which they are
engaged as public authorities;
22
A Co-operative Housing Society or
Residential Welfare Association shall
be treated as a Person as per Sec
2(84) of CGST Act.
A Person supplying the goods or
services or both shall be treated as
a Supplier as per Sec 2(105) of CGST
Act. Since the Co-operative Housing
Society or
Residential
Welfare
Association providing services to its
members, it falls under the definition of
Facilities, Benefits and other services
provided by society are treated
as supply as per As per (1) of CGST
Act.
Monthly
/
periodic
maintenance
charges collected from members may
be treated as Consideration as per
definition provided in Sec 2(31) of
CGST Act
From Clause (e) of Sec 2(17) of CGST
Act, it is clear that business
includes provision by a society of the
facilities
or
benefits
to
its
members, therefore services provided
by society to its members are
considered as supply in the course or
furtherance of business.
When the aggregate turnover of
a Supplier in a financial year exceeds
twenty lakh rupees, such Person(s)
become Liable for Registration
under GST as per Sec 22. (1) Of
CGST Act. That means the collection
money) maintenance charges by
society exceeds Rs 20 Lakhs per