GST for Cooperative Societies — Housing, Credit, Consumer and Agricultural Cooperatives

Cooperative societies in India — housing cooperatives, credit cooperatives, consumer cooperatives and agricultural cooperative societies — have complex GST treatment depending on the nature of their activities. Here is a category-wise guide to GST applicability for cooperatives.

Housing Cooperative Societies (Resident Welfare Associations)

• GST exemption: Housing society maintenance charges collected from members are exempt if: (a) the per-member monthly contribution is ₹7,500 or less, AND (b) the society's aggregate annual turnover is below ₹20 lakh
• If monthly maintenance per member exceeds ₹7,500 — GST at 18% applies on the entire amount (not just the excess above ₹7,500)
• Sinking fund, corpus fund, repair fund collected from members are generally outside GST if for specific building purposes
• If the society provides additional services (parking fees, clubhouse rental, commercial space rent) — GST applies on those services

Credit Cooperative Societies

• Interest income earned by a credit cooperative from lending to its members is exempt from GST (financial service — loan)
• Processing fees and administrative charges collected for loans may attract 18% GST
• Investment income (FD interest, bond income) — not a taxable supply, outside GST

Consumer Cooperative Societies

• Sales of goods by consumer cooperatives (retail of groceries, clothes, etc.) — GST at applicable rate for the goods sold
• No special exemption for consumer cooperatives on retail sales
• Services provided by consumer cooperatives (canteen, services) — 18% GST

Agricultural Cooperative Societies

• Supply of agricultural produce (unprocessed) is generally exempt from GST
• Milk supply by dairy cooperatives (Milma in Kerala): GST exempt for packaged milk
• Processed food products (butter, cheese, ghee) — GST at applicable rates
• Agricultural input supply (seeds, fertilisers) — specific GST rates apply

Conclusion

GST for cooperative societies requires careful analysis of the nature of activities, membership fee levels and exemption thresholds — with non-compliance risks for housing societies exceeding the ₹7,500 limit. SPOTON provides GST advisory and return filing for cooperative societies across Kerala. Contact us for expert GST compliance services for cooperatives.