Suggested response:
As per sec 22(1) of CGST act which requires every supplier of goods/ services whose aggregate turnover exceeds by 20 lacs in a financial year needs to be registered under the act (unless works in notified areas).
As per service booklet issued by CBEC refer entry no 80 which states that "...... up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex".......https://www.cbec-gst.gov.in/pdf/services-booklet-03July2017.pdf
Now,
The above exemption has some criteria which needs to be followed i.e. amount of INR 5,000 per month per member would be exempt only when services/goods are being sourced from THIRD person for common use of its members"
Below are some pointers-
1- There is no limit of number of members as indicated above,
2- The services/ goods should be sourced from third person,
3- Use of such goods/ service should be for common purposes and not for any selected part of members,
Aggregate turnover which is required to be calculated to arrive a threshold limit for registration purposes only , to calculate INR 20 lacs should include all supplies whether taxable or exempt supplies and hence even if the exempt services are being provided as per the scenario above, the same would be included while calculating this threshold limit and once it reaches to INR 20 lacs then it means all obligation towards this act will apply (e.g. return filing etc) but this does not mean that all supplies will be liable for GST unless the exemption from such services are no loner available (e.g. society would start charging more than INR 5,000 per member then it will become taxable supply).
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As per sec 22(1) of CGST act which requires every supplier of goods/ services whose aggregate turnover exceeds by 20 lacs in a financial year needs to be registered under the act (unless works in notified areas).
As per service booklet issued by CBEC refer entry no 80 which states that "...... up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex".......https://www.cbec-gst.gov.in/pdf/services-booklet-03July2017.pdf
Now,
The above exemption has some criteria which needs to be followed i.e. amount of INR 5,000 per month per member would be exempt only when services/goods are being sourced from THIRD person for common use of its members"
Below are some pointers-
1- There is no limit of number of members as indicated above,
2- The services/ goods should be sourced from third person,
3- Use of such goods/ service should be for common purposes and not for any selected part of members,
Aggregate turnover which is required to be calculated to arrive a threshold limit for registration purposes only , to calculate INR 20 lacs should include all supplies whether taxable or exempt supplies and hence even if the exempt services are being provided as per the scenario above, the same would be included while calculating this threshold limit and once it reaches to INR 20 lacs then it means all obligation towards this act will apply (e.g. return filing etc) but this does not mean that all supplies will be liable for GST unless the exemption from such services are no loner available (e.g. society would start charging more than INR 5,000 per member then it will become taxable supply).
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