GST impact on housing societies: Centre today refuted media reports that under the recently launched Goods and services (GST), service provided by housing societies will become costlier.
GST impact on housing societies: Centre today refuted media reports that under the recently launched Goods and services (GST), service provided by housing societies will become costlier. In a press release, the government called this as ‘completely unsubstantiated’. It added that the supply of services by Residents Welfare Association (RWA) to its members through reimbursements or share of contribution up to Rs 5,000 for members per month and goods for the common use of all members in a housing society have been excluded from GST.
The notification further said that in case the aggregate turnover of an RWA is Rs 20,00,000 in a financial year, then such supplies would be exempted from GST, even when charges per member are more than Rs five thousand. The tax burden on RWAs will be lower under the GST since they would now be entitled to ITC in respect of taxes paid by them on capital goods like water pumps, generators, lawn furniture etc and input repair and maintenance services. The ITC of VAT and Central Excise on goods and capital goods was not there in the pre-GST period and these were part of the cost to the RWA. Therefore no change has been made to services provided by the RWA) for its members after GST came it being, the release added.
In the meantime, Ludhiana in Punjab has witnessed the dip in production after GST came into being, Indian Express said. Even as several industrial groups are seeking clarifications on the new tax, several others are demanding deemed input tax credit on old stock. “We are running our units on a single shift and are not doing any overtime as a number of clients whom we have to supply material, have no GST number. It is the same problem with the persons who supply us raw material. So business is being done in a restricted manner,” Avtar Singh, President of Chamber of Industrial and Commercial Undertakings (CICU), was quoted as saying by the paper.