Short Answer

Yes, a cooperative society can charge GST on maintenance bills, and it is typically the responsibility of the members to pay it.

Detailed Explanation

Section 2(57) of the Gujarat Cooperative Societies Act, 1961 defines "services" as including facilities provided by a society to its members for a payment. This means that maintenance services provided by a cooperative society to its members fall under the purview of GST. In practice, societies can charge GST on maintenance bills as per the applicable rates set by the government. Members are usually required to pay this GST along with their maintenance charges.

Rule 12 of the Gujarat Cooperative Societies Rules, 1965 empowers societies to levy and collect charges for services provided by them, including maintenance services. The rule also allows societies to determine the manner of collection of these charges. Therefore, societies can include GST as part of the maintenance bills and collect it from the members. This practice is common in cooperative housing societies where maintenance charges are levied on members for various services provided by the society.

For example, if a cooperative housing society charges Rs. 10,000 per month as maintenance fees, and the applicable GST rate is 18%, the total amount payable by the member would be Rs. 11,800 (Rs. 10,000 + 18% GST). Failure to pay the GST component may lead to penalties or legal actions by the society against the defaulting member.

In another scenario, if a society outsources maintenance services such as cleaning, security, or gardening, and these services attract GST, the society can pass on this GST liability to the members by including it in the maintenance bills. This ensures that the society remains compliant with tax regulations while providing essential services to its members.

In conclusion, cooperative societies can charge GST on maintenance bills as per the provisions of the Gujarat Cooperative Societies Act, 1961 and Rules, 1965. The responsibility of paying this GST typically falls on the members who avail of the maintenance services provided by the society.

References

• Section 2(57) of the Gujarat Cooperative Societies Act, 1961: Link

• Rule 12 of the Gujarat Cooperative Societies Rules, 1965: Link