Showing posts from July, 2017

Hapless Co-operative Housing Society members slapped with 18% GST and Complex Paperwork

Recent implementation of GST Act in India has not only slapped massive 18% GST on Co-operative Housing Society (CHS) member contributions but also burdened them with very complex paperwork.

If one understands the basic tenet of CHS and its working one would immediately understand the absurdity of this idea of levying financial as well as administrative burden. Here is my argument for not levying GST on CHS:

Why GST should not be levied on CHS?I. CHS works on no-profit, no-loss co-operative model. Here services are received by members from the elected members of the society. People don't have any alternative but to live in a CHS. When CHS is formed by members, they do it out of necessity; and NOT for entertainment or for profit. Housing is a basic necessity of people.

Slapping 18% GST on member contributions is simply a bad idea emanating from a bureaucratic machinery having no experience of CHS movement. There is no basis to levy any GST on CHS.

II. CHS has a very minimum administr…