Short Answer

When GST or other new taxes apply, they should be accounted for in society books as per the relevant provisions of the Gujarat Cooperative Societies Act, 1961 and Rules.

Detailed Explanation

Section 79 of the Gujarat Cooperative Societies Act, 1961 empowers cooperative societies to maintain proper books of accounts. This includes recording all financial transactions, including taxes like GST. The society should ensure that all taxes are accurately accounted for in their books to maintain transparency and compliance with legal requirements.

Rule 74 of the Gujarat Cooperative Societies Rules, 1965 specifies the format of the annual statement of accounts to be prepared by cooperative societies. This statement should reflect the details of all taxes paid by the society, including GST or any other new taxes. It is essential for the society to maintain detailed records of tax payments and receipts to facilitate audits and inspections by authorities.

In practice, when GST or other new taxes are applicable to the society, the accounts department or authorized personnel should ensure that these taxes are correctly calculated, accounted for, and reflected in the financial statements. Any discrepancies or errors in tax accounting can lead to legal and financial implications for the society.

Real-world Scenarios

• Scenario 1: A cooperative housing society in Gujarat is liable to pay GST on maintenance charges collected from its members. The society's accountant diligently records the GST amount in the books of accounts under the guidance of Section 79 of the Act.

• Scenario 2: A cooperative credit society introduces a new tax on loan processing fees as per government regulations. The society updates its accounting practices in compliance with Rule 74 of the Rules to include this new tax in their financial statements.

• Scenario 3: A cooperative agricultural society faces changes in tax regulations impacting their produce sales. The society adapts its accounting procedures to accurately document the new taxes as per the provisions of the Act and Rules.

References

• Section 79 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 74 of the Gujarat Cooperative Societies Rules, 1965: Official PDF